Hatsun Agro Product Ltd.’s quarterly profit rose modestly even as revenue grew nearly 20%, with higher costs weighing on the dairy maker’s operating margins.
Net profit increased 5.6% to ₹116 crore in the September quarter from ₹110 crore a year earlier, the company said in an exchange filing. Revenue from operations climbed 19.4% to ₹2,898 crore.
Operating earnings grew at a much slower pace. Earnings before interest, tax, depreciation and amortisation rose 2% to ₹331 crore, while the EBITDA margin fell to 11.4% from 13.4% a year earlier. The divergence suggests the company retained a smaller share of each rupee of revenue as operating profit.
Chairman RG Chandramogan cited geopolitical uncertainty, El Niño-related factors and inflation in agricultural input costs as challenges for the dairy industry. He said the company was relying on its farmer network, established brands and operational efficiency to support performance.
Hatsun Agro sold 288 crore consumer packs in the six months, or an average of about 1.58 crore packs a day, Chandramogan said.
The company is expanding in existing markets and entering new ones, including Maharashtra and Odisha, while investing in procurement, processing and distribution. It said demand for dairy products, cultured products and ice creams remained encouraging.
Hatsun Agro shares fell 5.55% to ₹1,072.90 on the National Stock Exchange on Thursday. The stock is down 8.8% over the past month but up 9.4% so far this year.