India’s Hatsun Agro Product, which sells products under brands such as Arun IceCreams and Arokya Milk, reported its slowest quarterly profit growth in three quarters, hurt by heavy floods in its home state of Tamil Nadu.
Last month, cyclone Michaung flooded a large part of the southern Indian state, which is home to 13 of Hatsun’s 20 milk processing plants and, according to ICICI Securities, accounts for over half of the company’s revenue.
The Chennai-based company’s profit after tax rose 23.6 per cent to 574 million rupees ($6.91 million) in the three months ended December 31, its slowest since the 2023 March quarter.
Total expenses, led by raw material costs, rose 11.2 per cent. This offset Hatsun’s 11.3 per cent rise in revenue – the highest revenue growth the company has recorded since the 2023 March quarter, coming on the back of a productive flush season.
The flush season runs from October to February, as lower temperatures lead to higher milk production, and is used by dairies to build supply for the lean season.
Rivals Heritage Foods and Dodla Dairy will report third-quarter results later this month.
Shares of Hatsun Agro rose as much as 3.7 per cent to hit a four-month high after the results, before giving up all the gains to trade 2.1 per cent lower.
