Hatsun Agro Product has posted a strong growth on higher volumes across milk and milk products in the fourth quarter of 2016-17 over the comparable quarter in the previous year.

The company has reported a net profit of ₹43.30 crore on a total income of ₹1,217.65 crore for the quarter ended March 31, 2017.

In the comparable quarter, the largest private sector dairy player in the domestic market, had reported a net loss of ₹16.79 crore, due to an exceptional tax item, on total income of ₹893.53 crore.

For the year ended March 31, 2017, Hatsun Agro has more than doubled its net profit over that of the previous year to ₹133.96 crore (₹60.49 crore) on a total income of ₹4,199.66 crore (₹3,444.68 crore) for 2016-17.

RG Chandramogan, Managing Director, said the company’s focus on strengthening ice-cream and curd businesses and the start of the demand season from January; growth in cattle feed and also liquid milk, which saw growth in volume and some price increase, have all contributed to the strong performance.

Demonetisation in November 2016 helped cattle feed business, he said.

Dairy farmers who earlier bought feed on credit from third parties opted for the convenience of feed-for-milk barter deal with Hatsun due to the cash crunch. Subsequently, they chose to stay with the company feed.

Hatsun’s cattle feed business is about 10,000 tonnes a month against 6,500 tonnes in the previous year.

The Ibaco chain of exclusive ice-cream parlours has also stabilised, he said.

Hatsun Agro has declared an interim dividend of ₹3 an equity share of ₹1 taking the cumulative interim dividend for 2016-17 to ₹ 4.

On the BSE, the company’s scrip closed marginally lower at ₹618.55 over the previous close of ₹625.75.

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