India's Heritage Foods profit rises more than three-fold on strong summer demand
BENGALURU, July 23 (Reuters) -India's Heritage Foods HEFI.NS reported a more than three-fold jump in quarterly profit on Tuesday, as scorching summer boosted demand for ice creams and milkshakes.
The dairy producer said its consolidated profit rose 249% to 584.3 million rupees ($6.98 million) in the three months to June 30, marking the sixth consecutive quarter of growth.
Revenue from operations rose 11% to 10.33 billion rupees.
For further results highlights, click here.
KEY CONTEXT
Unprecedented heat during the June quarter lifted demand for ice creams, lassi, buttermilk and flavored milk, benefiting dairy producers such as Heritage Foods.
Also, rising incomes mainly in urban India and preference for healthier options drove demand for branded dairy products.
Earlier this month, peers Dodla Dairy DODL.NS and Hatsun Agro Products HAPL.NS had reported 85% and 63% gains in quarterly profits, respectively.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | ||||||
RIC | PE | EV/EBITDA | Revenue growth(%) | Profit growth(%) | Mean rating* | # of analysts* | Stock to price target** | |
Heritage Foods Ltd | HEFI.NS | 32.00 | 17.88 | 12.27 | 37.99 | Strong Buy | 3 | 1.27 |
Dodla Dairy Ltd | DODL.NS | 30.91 | 19.36 | 15.69 | 27.28 | Strong Buy | 4 | 0.99 |
Hatsun Agro Product Ltd | HAPL.NS | 66.48 | 26.20 | 13.99 | 37.71 | Hold | 2 | 1.14 |
Parag Milk Foods Ltd | PAMF.NS | 13.64 | 8.47 | 17.20 | NULL | Strong Buy | 1 | 0.66 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
-- All data from LSEG
($1 = 83.6720 Indian rupees)
Heritage Foods https://tmsnrt.rs/4dcOhHi
Reporting by Aleef Jahan, Ashna Teresa Britto; Editing by Subhranshu Sahu
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