Indian dairy firm Hatsun Agro sees dip in Q3 profit as input costs rise

Hatsun Agro Product

19/01/2023 11:09

BENGALURU, Jan 19 (Reuters) - India's Hatsun Agro
Product Ltd  HAPL.NS , 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.
    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)
 ((Priya.Sagar@thomsonreuters.com;
bharath.rajeswaran@thomsonreuters.com;))