Stabilisation of the milk ingredients business in the domestic markets has contributed to a steep jump in net profits for Hatsun Agro.

The company has reported a 66 per cent jump in net profit for the third quarter ended December 31, compared with the corresponding quarter in the previous year.

The net profit was Rs 10.66 crore (Rs 6.42 crore) on an income of Rs 404.56 crore (Rs 340.36 crore) for the quarter.

Mr R.G. Chandramogan, Managing Director, Hatsun Agro told Business Line the growth in profits has been due to the establishment of dairy products such as ghee, dairy whitener, milk powder and butter in the domestic market and improved contribution from them. The company has launched these products over the last two years after it exited the milk powder exports business following the changes in Government policy.

The last two years' focus and expenditure on these products are now starting to pay off, he said. In addition to Arun Ice Cream and Arokya milk brands in the south, the company now has a national brand in the Hatsun range of dairy products which are available up to J&K, the North-East and the West. The company has established 38 branches in various markets and the related infrastructure, he said.

Previously, branded products contributed to 72 per cent of its business and the balance was commodity business, primarily exports. Now, over 94 per cent of its business is from branded, value added products, which has a beneficial impact, he said.

The company has announced a total interim dividend of Rs 1.10 an equity share of Re 1 including Re 0.50 (50 per cent) Silver Jubilee year interim dividend.

Hatsun Agro, subject to shareholders' approval, has decided to make a bonus issue of one equity share of Re 1 for every two equity shares. The EGM to seek shareholders approval will be held on March 12.

> rbalaji@thehindu.co.in

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