 "Profit margins of dairy companies set to improve this year, says CRISIL")
Shares of Hatsun Agro Product (HAP) shot up by 14.76 per cent at Rs 1,135 a piece on the bSE in Tuesday’s intraday trade. The hike in the stock price came after a strong show by the company in its quarter four results for the financial year 2023-24 (Q4FY24).
On Monday, the dairy company reported revenue from operations in Q4FY24 at Rs 2,046 crore as against Rs 1,789 crore in Q4FY23 registering a growth of 14.38 per cent year-on-year (Y-o-Y).
It recorded Ebitda at Rs 231 crore in Q4FY24 as against Rs158 crores in Q4FY23, a growth of 46.64 per cent. The company’s net profits rose by 108 per cent Y-o-Y to Rs 52 crores in the March quarter versus Rs 25 crore in the same quarter in the previous year.
The company in a statement said that its procurement of milk registered a growth of 39.04 per cent in FY24 over FY23.
On full year basis, the company’s revenues from operations recorded a jump of 10.26 per cent Y-o-Y to Rs 7,990 crore in FY24 as against Rs 7,246 crore in FY23. The net profits also soared by 61 per cent to Rs 267 crore in FY24 versus Rs 165 crore in FY23.
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“HAP in the last financial year, had invested about Rs.550 crores across new manufacturing facilities for capacity expansion in Curd and Milk Products and in market assets. The new capacities will further support our sales plans for FY 2024-25. Considerable investments have also been made to strengthen distribution, sales and marketing of our brands,” the management said.
At 11:18 AM, the stock of the company was trading 11.36 per cent higher at Rs 1,140 a piece on the BSE. In comparison, the S&P BSE rose 0.23 per cent at 73,829 levels. The Hatsun Agro Product stock is currently trading at a price to earnings multiple of 94.96 times.
HAP manufactures and markets products that cater to both cooking and consumption, like, milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee and paneer among other products.
Furthermore the rise in the stock price of HAP rubbed on other dairy players such as Dodla Dairy on Tuesday, as its stock gained 11 per cent at Rs 1,015 a piece on the BSE in the intraday deals. The stock, however, was trading 7.49 per cent higher but below its day’s high at Rs 982.85, as of 11:18 AM.
