Hatsun Agro zooms 10% on strong Q1 numbers

Hatsun Agro Product Limited shares were up 10 percent at Rs 1,069 apiece on July 20 at 9:16 am, with three lakh shares changing hands on NSE. The company reported a 54 percent jump in net profit to Rs 80 crore in the June quarter.

The company said a rise in input costs was offset by high milk prices on the back of strong demand. During the June quarter, milk prices in India reached their highest point due to a drop in production and strong demand coincided with the summer season also increased demand for ice-creams and curds.

The company’s revenue increased 7 percent to Rs 2,150.6 crore from Rs 2,014 crore.

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The dairy company’s earnings before interest, tax, depreciation and amortization (EBITDA) was up 34 percent to Rs 237 crore. The margins also improved 11 percent during the quarter ended June 2023.

Apart from Maharashtra, the company procures milk from most of the southern states such as including Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka.

The company has also declared an interim dividend of Rs 6 per equity share on the fully paid-up equity shares of the value of Rs 1 per share, the first the company has declared in the financial year. The record date is fixed as July 27, the company said on July 19.

In early July, the Chennai-based company approved the sale of the windmill division of the company to V.K.A. Polymers at a consideration of Rs 135 crore by way of transfer of all the assets and liabilities.

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