Heritage Foods, a leading dairy and retail company, has reported a 31% decline in its net profit for the first quarter of the current fiscal year. The company’s net profit stood at Rs 12.37 crore, down from Rs 24.92 crore in the same period last year. However, the company’s revenue rose by 10% to Rs 571.88 crore, compared to Rs 519.93 crore in the corresponding quarter of the previous year.
The decline in net profit is attributed to the increase in operating expenses, which rose by 14% to Rs 525.65 crore. The company’s operating profit margin declined to 7.9% from 10.4% in the same quarter last year. The rise in revenue is due to the growth in the company’s dairy and retail business.
Heritage Foods’ dairy business, which accounts for the majority of its revenue, reported a 12% increase in sales to Rs 444.88 crore. The company’s retail business, which operates under the brand name “Heritage Fresh”, reported a 5% increase in sales to Rs 111.91 crore. The company’s other business segments, including the bakery and renewable energy businesses, also reported growth in sales.
The company’s chairman, N. Chandrababu Naidu, stated that the decline in net profit is a temporary setback and the company is taking steps to improve its operational efficiency and margins. He also expressed confidence that the company’s revenue growth will continue in the coming quarters, driven by the increasing demand for dairy and retail products.
Heritage Foods has a strong presence in the southern states of India and is expanding its operations to other parts of the country. The company has a diverse portfolio of products, including milk, dairy products, and retail products, and has a strong distribution network. The company is also focusing on improving its digital presence and has launched several initiatives to increase its online sales.
Overall, while Heritage Foods’ net profit declined in the first quarter, the company’s revenue growth and expansion plans indicate a positive outlook for the future. The company’s efforts to improve its operational efficiency and margins are expected to yield results in the coming quarters, and the company is well-positioned to capitalize on the growing demand for dairy and retail products in India. With a strong brand and a diverse portfolio of products, Heritage Foods is expected to continue its growth trajectory in the coming years.