Hatsun Agro

This is India’s largest private sector dairy company, collecting milk from over 3 Lakh+ farmers, from 8500 villages. It sells products under the brand names of Hatsun, Arun and Arokya. Being an agro based company, its numbers are usually compared YoY, seasonality gives consistency in the comparison.

The company posted a dull and staid set of numbers for Q1FY17. Its net sales for the quarter rose 19% (YoY) at Rs.1032 crore. Raw material costs were down 2% but overall expenses rose 20%. Operating profit was up 4% at Rs.55 crore. The company’s net profit was static at Rs.29 crore.

Milk prices have been stable but are now slowly on the rise. The company expects the company to show a growth of 17-25% in FY17. It hopes to expand its procurement network in Andhra Pradesh, Maharashtra and Karnataka through its internal accruals. The company is laying more emphasis on consumer sales through its four sectors – ice-cream, curd, milk and cattle feed.