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Hatsun Agro Product Ltd’s net profit more than doubled to ₹66 crore for the second quarter ended September 30as against ₹25 crore in the corresponding quarter last year. Revenue was up by nearly 4 per cent to ₹1,329 crore (₹1,280 crore).
On the improved profitability and revenue, RG Chandramogan, Managing Director, told BusinessLine that it was due to softening of purchasing price of milk in States like Maharashtra; deep discount in advertisements and pick up in sale of ice-creams from the second quarter.
The company’s board, at its meeting on Monday, recommended issue of bonus in the ratio of 1:3. The board also approved a proposal to capitalise ₹16 crore out of the company’s reserves to issue the bonus shares and thereby increase the paid-up equity share capital from ₹16.16 crore to ₹21.55 crore, said a company communication to the BSE.
The board also approved the re-designation of Chandramogan as Chairman. It also approved the re-designation of C Sathyan from the position of Executive Director to Managing Director.
Capex plans
On capex for 2020-21, the milk and milk products plant in Solapur, Maharashtra, has been erected with a capacity to handle 4 LLPD and full-fledged commercial production is expected during November.
On milk products plant at Udhiyur in Dharapuram in Tamil Nadu, the company is in the process of installing milk products manufacturing facility in December and a milk processing unit with a capacity of 1.5 LLPD during March 2021 in the undisputed lands as per court order.
In the ice-cream plant in Zaheerabad, Sangareddy district of Telangana, construction activities are on and the plant is expected to be commissioned during the fourth quarter of 2020-21. The expected capex outflow is about ₹245 crore, the company said.
The company’s stock closed at ₹847.30, up ₹6.30, on the BSE on Monday.
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