Hatsun Agro Product Reports Strong Q4 Revenue, Profit Margins Take a Hit

Image Source: The Economic Times

Hatsun Agro Product Ltd, a prominent player in India's dairy industry, published its consolidated profit after tax figures for the fourth quarter ended March 31, 2025. The organization recorded good topline growth in revenue, even as profitability got hurt.

Brief Introduction

Hatsun Agro Product Ltd has posted its March quarter (Q4 FY25) consolidated results with a strong revenue number of ₹22.43 billion. Although the consolidated profit after tax (PAT) at the company stood at ₹430.1 million, depicting persistence in margin strains due to increase in input prices.

Financial Highlights

Revenue from Operations: The consolidated revenue posted was ₹22.43 billion for the quarter ending March 2025, showing sustained appetite for Hatsun's dairy range.
Profit After Tax (PAT): Consolidated PAT was at ₹430.1 million, down from earlier quarters due primarily to increased raw material and operating costs.
Earnings Per Share (EPS): Basic and diluted EPS for the quarter were at ₹1.84, a fall from ₹2.89 in the last quarter.

Quarterly Performance Overview

Sequential Trends:

Q4 revenue was marginally lower than the previous quarters, at ₹20.1 billion in December 2024 and ₹20.7 billion in September 2024, due to a seasonal fall.
PAT fell sequentially as well, consistent with the effect of higher costs and muted margins.

Expense Analysis:

Raw material usage and other working expenses continued to be high, affecting overall profitability.

Dividend and Shareholder Returns: There were no new dividend announcements for the quarter.
Market and Strategic Developments Recent Acquisition:

Hatsun Agro recently closed the acquisition of Milk Mantra Dairy in an effort to enhance its footprint in Eastern India.

Stock Performance:

Shares in the company have experienced volatility over recent weeks, indicative of investor response to earnings as well as wider market movements.

Outlook

Though Hatsun Agro Product continues to post strong top-line expansion, the company remains under pressure from increasing input prices and margins. Strategic purchasing and new market entry through expansion are likely to drive long-term growth, but near-term profitability might be under threat.

Sources: Moneycontrol, BlinkX, MarketScreener

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