Heritage Foods Ltd Share Price – NSE /  BSE

FMCG, Small Cap

Dr. Muddana Sambasiva Rao holds a postgraduate degree and doctorate in zoology. He has been associated with Heritage Foods as President since 2006. Prior to this, he served both state (Andhra Pradesh) and central governments for about two decades at various positions as a member of IAS. The last assignment before joining Heritage was Joint Secretary in the Department of Commerce under the Ministry of Commerce and Industry, Government of India.

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

The company’s consolidated net profit jumped 60.03% to Rs 43.05 crore on a 9.86% rise in revenue from operations to Rs 1,033.9 crore in Q3 FY25 over Q3 FY24.

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The rating on the short-term bank facilities has been upgraded to 'Crisil A1+’ from 'Crisil A1’.

Crisil Ratings stated that the revision in outlook factors in sustained improvement in the business risk profile of the Heritage group, driven by healthy growth in revenue and operating margin, along with prudent working capital management.

Revenue is projected to grow at a healthy pace in fiscal 2025, from Rs 3,794 crore in fiscal 2024, with increase in demand translating into healthy volumetric growth and price realisations. Revenue is further likely to maintain the healthy growth momentum over the medium term.

Operating margin is also expected to improve in fiscal 2025, supported by lower procurement prices and average selling prices remaining fairly stable. Though procurement prices may rise, the margin should remain at healthy levels over the medium term.

Working capital requirement of the group is managed efficiently. Prudent working capital management, coupled with moderate profitability, should keep the return on capital employed healthy, over the medium term.

The outlook revision also factors in the strong financial risk profile, marked by healthy networth, against moderate debt, resulting in a robust capital structure and debt protection metrics.

The upgrade in the short-term rating reflects improvement in liquidity of the Heritage group, with investments in liquid mutual funds and unencumbered cash balance of Rs 352 crore as on 30 September 2024, an unutilized working capital limit and adequate cash accrual against minimal repayment obligations.

The ratings continue to reflect the group’s strong market position in the dairy business, its well-established distribution network, prudent working capital management and healthy financial risk profile. These strengths are partially offset by exposure to volatility in milk prices, geographic concentration in revenue, regulatory changes and inherent epidemic-related factors.

Heritage Foods is the parent entity of the Hyderabad-based Heritage group, which sells milk and dairy products under the Heritage brand. The group also has captive solar and wind power plants with an installed capacity of 11.70 megawatts.

The scrip shed 0.90% to currently trade at Rs 384.20 on the BSE.

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Net profit of Heritage Foods rose 60.04% to Rs 43.05 crore in the quarter ended December 2024 as against Rs 26.90 crore during the previous quarter ended December 2023. Sales rose 9.87% to Rs 1033.94 crore in the quarter ended December 2024 as against Rs 941.10 crore during the previous quarter ended December 2023.

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The rating on the short-term bank facilities has been upgraded to 'Crisil A1+’ from 'Crisil A1’.

Crisil Ratings stated that the revision in outlook factors in sustained improvement in the business risk profile of the Heritage group, driven by healthy growth in revenue and operating margin, along with prudent working capital management.

Revenue is projected to grow at a healthy pace in fiscal 2025, from Rs 3,794 crore in fiscal 2024, with increase in demand translating into healthy volumetric growth and price realisations. Revenue is further likely to maintain the healthy growth momentum over the medium term.

Operating margin is also expected to improve in fiscal 2025, supported by lower procurement prices and average selling prices remaining fairly stable. Though procurement prices may rise, the margin should remain at healthy levels over the medium term.

Working capital requirement of the group is managed efficiently. Prudent working capital management, coupled with moderate profitability, should keep the return on capital employed healthy, over the medium term.

The outlook revision also factors in the strong financial risk profile, marked by healthy networth, against moderate debt, resulting in a robust capital structure and debt protection metrics.

The upgrade in the short-term rating reflects improvement in liquidity of the Heritage group, with investments in liquid mutual funds and unencumbered cash balance of Rs 352 crore as on 30 September 2024, an unutilized working capital limit and adequate cash accrual against minimal repayment obligations.

The ratings continue to reflect the group’s strong market position in the dairy business, its well-established distribution network, prudent working capital management and healthy financial risk profile. These strengths are partially offset by exposure to volatility in milk prices, geographic concentration in revenue, regulatory changes and inherent epidemic-related factors.

Heritage Foods is the parent entity of the Hyderabad-based Heritage group, which sells milk and dairy products under the Heritage brand. The group also has captive solar and wind power plants with an installed capacity of 11.70 megawatts.

The scrip shed 0.90% to currently trade at Rs 384.20 on the BSE.

Powered by Capital Market - Live News

Net profit of Heritage Foods rose 60.04% to Rs 43.05 crore in the quarter ended December 2024 as against Rs 26.90 crore during the previous quarter ended December 2023. Sales rose 9.87% to Rs 1033.94 crore in the quarter ended December 2024 as against Rs 941.10 crore during the previous quarter ended December 2023.

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Profit before tax was at Rs 58.81 crore in the third quarter of FY25, marking a growth of 63.13% as against Rs 36.05 crore posted in Q3 FY24.

EBITDA jumped 43% YoY to Rs 74.10 crore, while EBITDA margin improved by 164 bps to 7.2% during the quarter under review.

On the segmental front, revenue from dairy was at Rs 1,019.5 crore (up 10.52% YoY), feed revenue was at Rs 50.89 crore (up 14.61% YoY), and revenue from renewable energy stood at Rs 1.29 crore (down 14.56% YoY) during the quarter.

During Q3 FY25, average milk procurement price dropped 2.7% YoY to Rs 41.91 per Litre, but higher than Q2 by Rs 1.66 per liter. The company posted 12.62% YoY growth in milk procurement to 1.84 million litres per day (MLPD).

Milk sales volume growth sees 6.08% YoY increased in milk sales volumes to 1.17 million Lt per Day (MLPD) but registered a minor dip in avg selling price to Rs. 54.64/L from Rs. 55/L, due to mix change.

Heritage Foods saw impressive growth in its value-added products (VAP) segment, achieving a 17.6% increase in revenues, reaching Rs 287.40 crore. The contribution of VAP to total revenue rose to 28.2%, up from 26.5% in Q3 FY24.

Brahmani Nara, executive director, said, “I am pleased to announce that Heritage Foods has achieved revenues of over Rs 10,000 million for the third consecutive quarter. In Q3 FY25, our revenue grew by 10% year-on-year, reaching Rs 10,339 million. EBITDA for the quarter was Rs 741 million, resulting in a margin of 7.2%. Notably, our net profit increased significantly by 60% year-on-year to Rs 431 million, resulting in a margin of 4.2%, further reinforcing our strong financial standing.

Heritage Foods has set an extraordinary benchmark, revolutionizing the dairy industry with its innovative approach and unwavering commitment to quality. By establishing a robust, integrated supply chain, adopting a cutting-edge omni-channel presence, expansion of the company’s geographic footprint, diverse and customer-centric product portfolio that not only meets seasonal demands but also fosters long-term customer engagement.

We have placed a strong emphasis on value-added products (VAP), which have become a key driver of both revenue and high margins, further strengthening our market position. In parallel, our targeted marketing campaigns have played a crucial role in enhancing brand recognition and deepening consumer engagement.

We remain confident that our commitment to innovation, quality, and customer engagement will enable us to not only navigate but thrive amidst future challenges. As always, we remain dedicated to creating shareholder value with unwavering passion and commitment. In the upcoming quarters, we will continue to focus on enhancing our business model by advancing up the value chain, ensuring our ongoing success.”

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

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Dr. Muddana Sambasiva Rao holds a postgraduate degree and doctorate in zoology. He has been associated with Heritage Foods as President since 2006. Prior to this, he served both state (Andhra Pradesh) and central governments for about two decades at various positions as a member of IAS. The last assignment before joining Heritage was Joint Secretary in the Department of Commerce under the Ministry of Commerce and Industry, Government of India.

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

The company’s consolidated net profit jumped 60.03% to Rs 43.05 crore on a 9.86% rise in revenue from operations to Rs 1,033.9 crore in Q3 FY25 over Q3 FY24.

Powered by Capital Market - Live News

The rating on the short-term bank facilities has been upgraded to 'Crisil A1+’ from 'Crisil A1’.

Crisil Ratings stated that the revision in outlook factors in sustained improvement in the business risk profile of the Heritage group, driven by healthy growth in revenue and operating margin, along with prudent working capital management.

Revenue is projected to grow at a healthy pace in fiscal 2025, from Rs 3,794 crore in fiscal 2024, with increase in demand translating into healthy volumetric growth and price realisations. Revenue is further likely to maintain the healthy growth momentum over the medium term.

Operating margin is also expected to improve in fiscal 2025, supported by lower procurement prices and average selling prices remaining fairly stable. Though procurement prices may rise, the margin should remain at healthy levels over the medium term.

Working capital requirement of the group is managed efficiently. Prudent working capital management, coupled with moderate profitability, should keep the return on capital employed healthy, over the medium term.

The outlook revision also factors in the strong financial risk profile, marked by healthy networth, against moderate debt, resulting in a robust capital structure and debt protection metrics.

The upgrade in the short-term rating reflects improvement in liquidity of the Heritage group, with investments in liquid mutual funds and unencumbered cash balance of Rs 352 crore as on 30 September 2024, an unutilized working capital limit and adequate cash accrual against minimal repayment obligations.

The ratings continue to reflect the group’s strong market position in the dairy business, its well-established distribution network, prudent working capital management and healthy financial risk profile. These strengths are partially offset by exposure to volatility in milk prices, geographic concentration in revenue, regulatory changes and inherent epidemic-related factors.

Heritage Foods is the parent entity of the Hyderabad-based Heritage group, which sells milk and dairy products under the Heritage brand. The group also has captive solar and wind power plants with an installed capacity of 11.70 megawatts.

The scrip shed 0.90% to currently trade at Rs 384.20 on the BSE.

Powered by Capital Market - Live News

Net profit of Heritage Foods rose 60.04% to Rs 43.05 crore in the quarter ended December 2024 as against Rs 26.90 crore during the previous quarter ended December 2023. Sales rose 9.87% to Rs 1033.94 crore in the quarter ended December 2024 as against Rs 941.10 crore during the previous quarter ended December 2023.

Powered by Capital Market - Live News

The rating on the short-term bank facilities has been upgraded to 'Crisil A1+’ from 'Crisil A1’.

Crisil Ratings stated that the revision in outlook factors in sustained improvement in the business risk profile of the Heritage group, driven by healthy growth in revenue and operating margin, along with prudent working capital management.

Revenue is projected to grow at a healthy pace in fiscal 2025, from Rs 3,794 crore in fiscal 2024, with increase in demand translating into healthy volumetric growth and price realisations. Revenue is further likely to maintain the healthy growth momentum over the medium term.

Operating margin is also expected to improve in fiscal 2025, supported by lower procurement prices and average selling prices remaining fairly stable. Though procurement prices may rise, the margin should remain at healthy levels over the medium term.

Working capital requirement of the group is managed efficiently. Prudent working capital management, coupled with moderate profitability, should keep the return on capital employed healthy, over the medium term.

The outlook revision also factors in the strong financial risk profile, marked by healthy networth, against moderate debt, resulting in a robust capital structure and debt protection metrics.

The upgrade in the short-term rating reflects improvement in liquidity of the Heritage group, with investments in liquid mutual funds and unencumbered cash balance of Rs 352 crore as on 30 September 2024, an unutilized working capital limit and adequate cash accrual against minimal repayment obligations.

The ratings continue to reflect the group’s strong market position in the dairy business, its well-established distribution network, prudent working capital management and healthy financial risk profile. These strengths are partially offset by exposure to volatility in milk prices, geographic concentration in revenue, regulatory changes and inherent epidemic-related factors.

Heritage Foods is the parent entity of the Hyderabad-based Heritage group, which sells milk and dairy products under the Heritage brand. The group also has captive solar and wind power plants with an installed capacity of 11.70 megawatts.

The scrip shed 0.90% to currently trade at Rs 384.20 on the BSE.

Powered by Capital Market - Live News

Net profit of Heritage Foods rose 60.04% to Rs 43.05 crore in the quarter ended December 2024 as against Rs 26.90 crore during the previous quarter ended December 2023. Sales rose 9.87% to Rs 1033.94 crore in the quarter ended December 2024 as against Rs 941.10 crore during the previous quarter ended December 2023.

Powered by Capital Market - Live News

Profit before tax was at Rs 58.81 crore in the third quarter of FY25, marking a growth of 63.13% as against Rs 36.05 crore posted in Q3 FY24.

EBITDA jumped 43% YoY to Rs 74.10 crore, while EBITDA margin improved by 164 bps to 7.2% during the quarter under review.

On the segmental front, revenue from dairy was at Rs 1,019.5 crore (up 10.52% YoY), feed revenue was at Rs 50.89 crore (up 14.61% YoY), and revenue from renewable energy stood at Rs 1.29 crore (down 14.56% YoY) during the quarter.

During Q3 FY25, average milk procurement price dropped 2.7% YoY to Rs 41.91 per Litre, but higher than Q2 by Rs 1.66 per liter. The company posted 12.62% YoY growth in milk procurement to 1.84 million litres per day (MLPD).

Milk sales volume growth sees 6.08% YoY increased in milk sales volumes to 1.17 million Lt per Day (MLPD) but registered a minor dip in avg selling price to Rs. 54.64/L from Rs. 55/L, due to mix change.

Heritage Foods saw impressive growth in its value-added products (VAP) segment, achieving a 17.6% increase in revenues, reaching Rs 287.40 crore. The contribution of VAP to total revenue rose to 28.2%, up from 26.5% in Q3 FY24.

Brahmani Nara, executive director, said, “I am pleased to announce that Heritage Foods has achieved revenues of over Rs 10,000 million for the third consecutive quarter. In Q3 FY25, our revenue grew by 10% year-on-year, reaching Rs 10,339 million. EBITDA for the quarter was Rs 741 million, resulting in a margin of 7.2%. Notably, our net profit increased significantly by 60% year-on-year to Rs 431 million, resulting in a margin of 4.2%, further reinforcing our strong financial standing.

Heritage Foods has set an extraordinary benchmark, revolutionizing the dairy industry with its innovative approach and unwavering commitment to quality. By establishing a robust, integrated supply chain, adopting a cutting-edge omni-channel presence, expansion of the company’s geographic footprint, diverse and customer-centric product portfolio that not only meets seasonal demands but also fosters long-term customer engagement.

We have placed a strong emphasis on value-added products (VAP), which have become a key driver of both revenue and high margins, further strengthening our market position. In parallel, our targeted marketing campaigns have played a crucial role in enhancing brand recognition and deepening consumer engagement.

We remain confident that our commitment to innovation, quality, and customer engagement will enable us to not only navigate but thrive amidst future challenges. As always, we remain dedicated to creating shareholder value with unwavering passion and commitment. In the upcoming quarters, we will continue to focus on enhancing our business model by advancing up the value chain, ensuring our ongoing success.”

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

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