Shares of Hatsun Agro Products soared 11 percent in the early trade on April 23 after the Chennai-based company's net profit doubled on year to Rs 52 crore in the January-March quarter.
At 9.19 am, Hatsun Agro was trading at Rs 1,112.50 on the NSE. The strong Q4 show also trigged a spike in volumes in the counter, as 93,000 shares changed hands within minutes, significantly higher than the one-month daily traded average of 31,000.
The strong bottomline growth was fuelled by healthy sales, retail expansion, increased procurement of milk and a solid margin expansion.
Revenue grew to Rs 2,047 crore from Rs 1,789 crore in the year-ago period, accompanied by a 39 percent spike in milk procurement.
"COVID had disturbed the operations for two years, which led to an impact on milk procurement in the H2 of FY23 and the H1 of FY24. Normalcy was restored in the H2 of FY24 for both procurement of milk and sales,” Hatsun Agro chairman RG Chandramogansaid in an exchange filing.
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Operating margins of the dairy products maker also expanded to 11.2 percent, up from 8.7 percent in the previous fiscal.
The company invested Rs 550 crore in new facilities to expand capacity for curd and milk products, as well as in market assets.
The capacity expansion would support its sales plans for FY25. "Additionally, substantial investments have been directed towards strengthening distribution, sales, and marketing of their brands. The company is also exploring opportunities to export ice creams to various countries through Hatsun Agro," Chandramogan said.
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