Strong sales recovery in the domestic market post COVID-19 helped Chennai-based Hatsun Agro Product Ltd (HAP), a private sector dairy company, more than double its net profit for the fourth quarter ended March 31, 2024, to ₹52 crores, compared to ₹25 crores in Q4 FY’23, registering a growth of 108.76 per cent.

Revenue from operations in Q4, FY24 was ₹2,047 crores as against ₹1,789 crores in Q4, FY23 registered a growth of 14.38 per cent.

Procurement of milk registered a growth of 39.04 per cent in FY24 over FY23, according to a release.

For FY24, the company reported a 61 per cent growth in net profit to ₹267 crores as against ₹166 crores in FY23. Revenue from operations in FY24, which grew by 10.26 per cent, was ₹7,990 crores (from ₹7,247 crores).

Procurement of milk in FY24 registered a growth of 20.30 per cent. HAP procures milk from select fine quality cattle collected directly from around 4 lakh farmers.

COVID-19 had disturbed the operations for two years, which led to an impact on milk procurement in the second half of FY22-23 and the first half of FY23-24. Normalcy has been restored in the second half of 2023-24 for both procurement of milk and sales, the release said.

Performance for the quarter and outlook RG Chandramogan, Chairman, Hatsun Agro Product Ltd, said strong sales recovery in the domestic market post Covid with good summer sales led to good sales volume. All business verticals did well with leading brands registering healthy sales growth. HAP’s retail expansion in the last two years helped HAP reach customers in new markets like Maharashtra, Orissa, West Bengal and Madhya Pradesh and also supported existing strong bases in South India.

HAP in the last financial year, had invested about ₹550 crores across new manufacturing facilities for capacity expansion in curd and milk products and in market assets. The new capacities will further support our sales plans for FY24-25. Considerable investments have also been made to strengthen distribution, sales and marketing of our brands, the release said.

HAP’s share price on Monday closed at ₹1,141.20, up by 11.42 per cent.