Heritage Foods Q4 Review - Highest Ebitda Margin In Past 17 Years: ICICI Securities

Range of ghee by Heritage Foods Ltd. (Source: Company website).

Heritage Foods Q4 Review - Highest Ebitda Margin In Past 17 Years: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Three highlights from Heritage Foods Ltd.'s Q4 FY21:

1. Ebitda margin expanded 350 basis points due to reduction in milk procurement prices. However, there is QoQ decline in Ebitda margin with sequential increase in milk procurement prices,

2. revenue decline of 5.1% was largely attributable to consumers not returning to urban regions and lower hotel-restaurant-face consumption.

Re-opening up of economy, vaccination drive and price hikes (after a gap of six quarters) will lead to higher revenues in FY22,

3. company has sold the stake in Future Retail Ltd. which will reduce the debt and interest cost in FY22.

Click on the attachment to read the full report:

ICICI Securities Heritage Q4FY21 Result Update.pdf

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