Heritage Foods Ltd has posted a lower net profit of Rs 5.48 crore for the third quarter ended December 31, 2014, as against Rs 13.54 crore for the corresponding quarter last year.
The Hyderabad-based dairy and retail company in a filing with the BSE after its board meeting on Friday, said the decrease in profitability of the dairy business was mainly due to an increase in raw material cost.
The company, however, posted higher revenues of Rs 510.79 crore for the third quarter versus Rs 423.76 crore for the corresponding period in the last financial year.
For the nine months, the company logged lower net profit of Rs 15.61 crore and higher income of Rs 1,503.35 crore, as against a profit of Rs 38.38 crore and revenue of Rs 1,284.29 crore for the corresponding period last tear.
In the last financial year, the company had closed with a net profit of Rs 45.31 crore and a turnover of Rs 1,722.03 crore.
A segment-wise break-up shows that while the flagship dairy business continued to be profitable, businesses in the investment phase such as retail, agri, and bakery registered losses.
During the quarter, the company commissioned a milk and products processing plant in its dairy division at Food Park at Rai Sonepat in Haryana.