Indian dairy firm Hatsun Agro's Q3 profit rises 24%, slowest in three quarters

Hatsun Agro Product

19/01/2024 09:27

BENGALURU, Jan 19 (Reuters) - India's Hatsun Agro
Product  HAPL.NS , which sells products under brands such as
Arun IceCreams and Arokya Milk, reported its slowest quarterly
profit growth in three quarters, hurt by heavy floods in its
home state of Tamil Nadu.
    Last month, cyclone Michaung flooded a large part of the
southern Indian state, which is home to 13 of Hatsun's 20 milk
processing plants and, according to ICICI Securities, accounts
for over half of the company's revenue.
    The Chennai-based company's profit after tax rose 23.6% to
574 million rupees ($6.91 million) in the three months ended
December 31, its slowest since the 2023 March quarter. 
    Total expenses, led by raw material costs, rose 11.2%. This
offset Hatsun's 11.3% rise in revenue - the highest revenue
growth the company has recorded since the 2023 March quarter,
coming on the back of a productive flush season.
    The flush season runs from October to February, as lower
temperatures lead to higher milk production, and is used by
dairies to build supply for the lean season.
    Rivals Heritage Foods  HEFI.NS  and Dodla Dairy  DODL.NS 
will report third-quarter results later this month.
    Shares of Hatsun Agro rose as much as 3.7% to hit a
four-month high after the results, before giving up all the
gains to trade 2.1% lower.
        
($1 = 83.1037 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Janane
Venkatraman
)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))