Heritage Foods Q2 Profit Up 5% to Rs 51 Cr

New Delhi, Oct 15 (PTI) Heritage Foods Ltd reported a 4.87 per cent rise in consolidated net profit to Rs 50.99 crore for the July-September quarter, helped by higher revenues despite elevated procurement costs, the dairy company said on Wednesday.

Net profit stood at Rs 48.62 crore in the year-ago period, according to a regulatory filing.

Total revenue rose to Rs 1,112.5 crore from Rs 1,019.52 crore a year earlier, while expenses climbed to Rs 1,059.2 crore from Rs 957.49 crore.

The Hyderabad-based company said it achieved 9 per cent year-on-year revenue growth despite challenges including adverse weather and higher procurement costs.

Procurement volumes fell 2.1 per cent to 16.1 lakh litres per day in the quarter, while average milk procurement prices increased 6.3 per cent to Rs 42.8 per litre.

"We took calibrated price actions to offset inflationary pressures and are confident that improving milk availability, GST-led tailwinds, festive demand, and seasonal recovery will drive a stronger second half," Executive Director Brahmani Nara said in a statement.

Milk sales volumes grew 1.1 per cent to 12.1 lakh litres per day, with average selling prices rising 4.5 per cent to Rs 57 per litre. Value-added products revenue grew 14.8 per cent to Rs 341.7 crore, contributing 31.4 per cent to total revenue excluding fats.

Heritage Nutrivet Limited, the company's wholly owned subsidiary, posted a 34 per cent jump in revenue to Rs 58.1 crore, while profit before tax surged 80 per cent to Rs 5.4 crore.