Heritage Foods has rallied 8% to Rs 475 on the BSE in otherwise weak market after the company reported three-fold jump in consolidated net profit at Rs 15.29 crore for the quarter ended September 30, 2015 (Q2FY16), on back of strong performance from dairy segment. The packaged foods company had profit at Rs 4.83 crore in the same quarter last year.
Net sales of the company increased by 14% at Rs 576 crore against Rs 504 crore in the corresponding quarter of previous fiscal. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded nearly 300 basis points (bps) at 6.11%.
The company’s dairy segment, accounted 73% of total revenue, have posted profit before finance cost and tax of Rs 34.10 crore for the quarter against Rs 13.99 crore in a year ago quarter. EBITDA margin of dairy business expanded nearly 400 basis points to 8.88% in Q2FY16 as against 4.96% in Q2FY15.
The stock hit a record high of Rs 495 on the BSE after announcements of Q2 results. A combined 364,068 shares changed hands on the counter on the BSE and NSE.