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FMCG stock jumps 12% after company’s net profit increased by 125% YoY 

Published 30-05-2024, 01:32 pm
FMCG stock jumps 12% after company’s net profit increased by 125% YoY
HEFI
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Share price of one of India’s leading dairy company offering milk and value-added dairy products moved up by 12.04 percent on BSE to hit a new 52-week high at Rs. 416.2 in the trading session of Thursday, after reporting FY24 financial results with a rise in net profit by 125 percent YoY.

With a market capitalisation of Rs. 3,812.52 crore, at 12:02 p.m., the shares of Heritage Foods (NS:HEFI) Limited were trading in the green at Rs. 410.85, up by 10.6 percent, compared to its previous closing price of Rs. 371.45.

The fluctuations in the share prices were observed after the company announced the financial results for FY24, through the recent filings with the stock exchanges on Wednesday post-market hours.

The revenue from operations stood at Rs. 950.5 crores in Q4 FY23-24, indicating a growth of 1 percent QoQ from Rs. 941 crore in Q3 FY23-24, and on a year-on-year basis, it increased by 16.3 percent from Rs. 817.5 crore in Q4 FY22-23.

Heritage Foods witnessed a rise in the after-tax profit by 50 percent QoQ from Rs. 27 crore in Q3 FY23-24 to Rs. 40.5 crore in Q4 FY23-24, and grew by 125 percent YoY from Rs. 18 crore in Q4 FY22-23 to Rs. 40.5 crore in Q4 FY23-24.

In Q4 FY23-24, the consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased by 67.5 percent YoY to Rs. 70.2 crore, while the EBITDA Margin grew by 226 bps to 7.39 percent.

On a year-on-year basis, the average milk procurement for Q4 FY23-24 was 15.9 lakh litres per day, registering a growth of 11.32 percent, while the milk sales volumes continued its steady growth in Q4, registering a growth of 3.74 percent to 11.1 lakh litres per day.

Further, the Board of the company has recommended a final dividend of Rs. 2.5 per equity share of the face value of Rs. 5 each for FY23-24 subject to the approval of the shareholders.

As per the shareholding pattern of March 2024, the Promoters hold a 41.3 percent stake in the company, Foreign Institutional Investors hold a 2.01 percent stake, while Retail Investors and Domestic Institutional Investors hold a 44.95 percent and 11.74 percent stake in Heritage Foods, respectively.

The stock has delivered positive returns of nearly 81.6 percent in the last one year and about 71.4 percent in six months. So far in 2024, it has given around 34 percent of positive returns.

Founded in 1992, Heritage Foods Limited is principally engaged in the provision of dairy, renewable energy and cattle feed products.

In the dairy division, the company is in the business of milk, milk products and ice cream or frozen desserts, along with a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited.

Written by Shivani Singh

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