Heritage Foods Q2 Results: Net profit rises 5% YoY; Margins narrow on higher input costs

Indian dairy company Heritage Foods Ltd on Wednesday reported a 5% year-on-year rise in net profit for the September quarter, supported by higher revenue, even as margins came under pressure due to elevated input costs.

Net profit for the quarter rose to ₹51 crore, up from ₹48.6 crore a year earlier.

Revenue from operations grew 9% year-on-year to ₹1,112.5 crore, compared with ₹1,019.5 crore in the same quarter last year.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) declined 7.2% to ₹77.2 crore, from ₹83.2 crore a year ago, as the company faced a rise in raw material and procurement costs. EBITDA margin narrowed to 6.9% from 8.2% a year earlier.

Hyderabad-based Heritage Foods is one of India’s leading private-sector dairy companies, engaged in the processing and distribution of milk and milk-based products such as curd, butter, ghee, buttermilk, and flavoured milk. It also operates a growing presence in value-added segments and has expanded its cold chain infrastructure across southern and western India.

Founded in 1992 by N. Chandrababu Naidu, current Chief Minister of Andhra Pradesh, the company has focused on backward integration through farmer partnerships and milk procurement networks. Heritage Foods has also committed to expanding its digital and retail footprint as part of its long-term growth strategy.

Shares of Heritage Foods ended largely unchanged at a price of ₹485.25 apiece ahead of the results. The stock has gained over 16% in the last six months.Read about our editorial guidelines and ethics policy