 "Milking Heritage")
Heritage Foods shares soared by 12.1 per cent, reaching Rs 416.20 per share on the BSE during Thursday's intraday trading session. The surge in stock price followed the company's significant increase in profits during the fourth quarter of the fiscal year 2023-24 (Q4FY24).
On Wednesday, the dairy products firm reported a revenue of Rs 950 crore, marking a 16.3 per cent increase from Rs 817.6 crore in the corresponding period a year ago. In Q4FY24, the company witnessed a 126 per cent surge in net profits to Rs 40.5 crore, compared to Rs 17.9 crore in Q4FY23.
During the quarter under review, the company's earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose by 67.5 per cent year-on-year to Rs 70.2 crore. The Ebitda margin stood at 7.39 per cent, showing a 220 basis points improvement in Q4FY24 over Q4FY23, the company said in a statement.
For the full fiscal year 2023-24, the revenue from operations increased by 17.1 per cent year-on-year to Rs 3,793 crore, while net profits witnessed an 83.6 per cent uptick, reaching Rs 106 crore in FY24. Ebitda grew by 51.5 per cent year-on-year to Rs 209 crore in FY24, with the Ebitda margin increasing by 125 basis points to 5.52 per cent.
In Q4FY24, the average milk procurement of the company was at 1.59 Million litres per day (MLPD), showing a growth of 11.32 per cent year-on-year. The average milk procurement prices for Q4-FY24 decreased by Rs 3.47 per litre Y-o-Y reaching Rs 41.70 per litre.
Milk sales volumes continued their steady growth in Q4, registering a 3.74 per cent year-on-year increase to 1.11 MLPD, with average milk selling prices averaging Rs 54.84 per litre, up by 1.78 per cent.
At 11:49 AM; the stock of the company was trading 9.62 per cent higher at Rs 407.20 per share on the BSE. In comparison the S&P BSE Sensex fell 0.52 per cent. Heritage Foods is presently trading at a price to earnings multiple of 43.40 times.
