Hatsun Agro Product Ltd has reported a 28 per cent drop in net profit for the second quarter of the current year compared with the corresponding quarter last year.
The company has announced an interim dividend of 80 paise (80 per cent) for a share of Re 1.
For the quarter ended September 30, Hatsun Agro has reported a net profit of Rs 9.66 crore (Rs 13.45 crore) on a total income of Rs 529.72 crore (Rs 393.89 crore).
Company officials attributed the drop in net profit, despite the one-third increase in total income, to the higher expenses involved in the launch and promotion of the company’s exclusive chain of Ibaco ice-cream parlours.
Also, the increase in income is primarily from exports of skimmed milk powder over the last two months. The company is yet to take into account the export incentives which will kick-in later.
Overall the profitability has not been impacted and volumes are up, the official said.
Finance costs are up at Rs 11.25 crore (Rs 9.04 crore) and tax expenses have jumped to Rs 3.07 crore (Rs 1.32 crore).