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Indian dairy firm Hatsun Agro falls 2.9% in animal feed, milk procurement

India's Hatsun Agro Product Ltd, which sells Arun ice cream and Arokya milk, reported a 2.9% fall in quarterly profit on Thursday, hurt mainly by a surge in prices for animal feed and milk procurement

Indian dairy firm Hatsun Agro falls 2.9% in animal feed, milk procurement
Indian dairy firm Hatsun Agro falls 2.9% in animal feed, milk procurement
Reuters BENGALURU
2 min read Last Updated : Jan 19 2023 | 5:26 PM IST

BENGALURU (Reuters) - India's Hatsun Agro Product Ltd, which sells Arun ice cream and Arokya milk, reported a 2.9% fall in quarterly profit on Thursday, hurt mainly by a surge in prices for animal feed and milk procurement.

The Chennai-based company said net profit dropped to 464.4 million rupees ($5.71 million) in the quarter ended Dec. 31, from 478.4 million rupees in the year-ago period.

While the quarter coincided with the October-February flush season when cattle naturally produce more milk, the prevalence of lumpy skin disease meant some of it went to waste.

Moreover, fodder prices went up due to a shortage as wheat and maize output fell, affecting most dairy farms in India.

Hatsun Agro's raw material costs rose 15.6% to 12.03 billion rupees in the quarter and accounted for nearly three-fourths of total expenses.

The company was also hurt by the unexpected and prolonged rains in South India, from where it gets more than half of its revenue.

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Its overall revenue rose 7.5% to 16.95 billion rupees in the latest quarter. However, that was slower than the 13.7% growth in the December quarter a year ago.

Nonetheless, price rises helped Hatsun Agro's core profit margins expand to 11.21% from 10.59% a year ago. ($1 = 81.3450 Indian rupees)

(Reporting by Priya Sagar & Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Topics :Hatsun AgroHatsun Agro ProductHatsun Agro Products

First Published: Jan 19 2023 | 5:26 PM IST

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