Hatsun Agro Q1 Review - Commencement Of Three Plants To Boost Return Ratios In FY22-23 : ICICI Securities

An employee conducts a test on a sample in a laboratory in an ice cream plant. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Hatsun Agro Q1 Review - Commencement Of Three Plants To Boost Return Ratios In FY22-23 : ICICI Securities

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ICICI Securities Report

Commencement of three plants in a span of just 12 months is likely to lead to strong revenue growth and drive the return ratios upwards in FY22-23.

Hatsun Agro Products Ltd. has commenced Solapur plant in Q4 FY21, Dharapuram (Tamil Nadu) plant in Q2 FY22 and plans to commence Govindapur, Telangana plant in Q3 FY22.

While milk procurement prices are expected to move upwards, we note-

  1. accumulation of skim milk powder inventory at lower prices on March 2021 balance sheet will partially arrest decline in Ebitda margin and

  2. possibility of price hikes in H2 FY22 as most co-operatives have raised prices now.

Click on the attachment to read the full report:

ICICI Securities Hatsun Agro Q1FY22 Results Update.pdf

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