The dairy product manufacturer's net sales jumped 30.9% to Rs 2,014.61 crore in Q1 FY23 as against Rs 1,538.78 crore posted in the corresponding quarter previous year.

The company had experienced high inflation in raw materials, packing materials and logistics. Inflation after peaking had started moderating and suitable price corrections were done at the end of Q1, the firm stated.

Profit before tax stood at Rs 70.68 crore in Q1 FY23, down 7.6% from Rs 76.46 crore in Q1 FY22. Total expenses spiked 33.78% to Rs 1,949.33 crore in Q1 FY23 over Q1 FY22.

During the quarter, cost of raw materials consumed surged 27.47 % to Rs 1,355.48 crore and employee expense rose 10.73 % to Rs 57.07 crore.

Commenting on the results, RG Chandramogan, chairman of Hatsun Agro Product, said, “We are happy to report good growth in revenues and crossing 2,000 crores sales mark for the first time in a quarter. Strong sales recovery in the domestic market post Covid with good summer sales led to highest ever quarterly sales volume. All our business segments did well with our leading brands registering healthy sales growth. HAP's retail expansion in the last two years helped us reach customers in new markets like Maharashtra, Orissa, West Bengal and Madhya Pradesh and also supported existing strong bases in South India."

He further added, "HAP in the last financial year, had invested about Rs 450 crore across new manufacturing facilities for capacity expansion in ice cream, milk, curd, milk products and cattle feed. The new capacities will further support our sales plans for FY 2022-23. Considerable investments have also been made to strengthen distribution, sales and marketing of our brands.”

The company said that it has started exports of Arun Icecreams to Singapore and Maldives in the last quarter. HAP has plans to further widen the international reach for Arun Icecreams.

Meanwhile, the company's board has declared an interim dividend of Rs 6 per equity share on fully paid up equity shares of the face value of Re1 per share. The company has fixed Wednesday, 27 July 2022 as record date towards payment of interim dividend. The interim dividend will be paid on or before 18 August 2022.

Hatsun Agro Product manufactures and markets dairy products like milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, paneer, etc.