Heritage Foods Limited has posted a lower net profit of Rs 4.83 crore for the second quarter ended September 30, 2014 as against Rs 10.15 crore for the corresponding quarter last financial year.

The Hyderabad-based listed company engaged in dairy and retail business however posted increase in its revenue at Rs 512.38 crore for the second quarter as against Rs 424.95 crore for the same period last year.

In a statement filed with the exchanges, along with the quarterly update, the company has indicated that the turnover was up 20.57 per cent for the quarter, wherein the dairy revenue was also up 17 per cent at Rs 383 crore. The dairy profitability was however lower due to extended summer season.

Providing business insights, the company stated that the value added products in dairy surged by 28.33 per cent to Rs 71.8 crore and the retail revenue was up by 30.45 per cent at Rs 122.7 crore. The company now has 1,245 dairy parlours.

Referring to the retail outlets, the company stated that their number has grown from 69 outlets last year same quarter to 82 now. During the second quarter, the company opened six new stores and is considering further expansion.

The company, in association with Mahindra EPC Services, has commissioned a 2.34 mw solar power project in Mulugu mandal of Medak district near Hyderabad to meet the captive energy requirement.

Heritage has strong presence in South Indian states and Maharashtra and Odisha. It is in the process of expanding its presence in the existing States further.

The milk procurement is highest in Andhra Pradesh, followed by Maharashtra and Tamil Nadu.

The company, which closed last fiscal with a turnover of Rs 1,722 crore and net profit of Rs 45 crore, employs 4,048 people across dairy, retail, agri and bakery businesses.

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