Heritage Foods - Q3 Results Review - Nirmal Bang

- Net sales stood at Rs 387.5 cr in Q3FY13 (8.8% up YoY and down by 2.5% QoQ).

- EBITDA was up by 87.5% YoY to Rs. 26.8 cr and flat QoQ due to decline in raw-material cost which accounts for 76.7% in Q3FY13 as compared to 80.5% in Q3FY12 and 77.9% in Q2FY13 as a % of sales. The decline in raw-material cost increased the gross margin by 380bps YoY.

- EBITDA margin stood at 6.9% in Q3FY13 as compared to 4% in Q3FY12 and 6.8% in Q2FY13, supported by significant jump in Dairy margin and substantial decline in the loss in Agri business.

- The company reported a Net profit of Rs 14.5 cr in Q3FY13 , up by 186.7% YoY and down by 16.02% QoQ basis.

- The PAT margin stood at 3.1% in Q3FY13 as against 1.2%in Q3FY12 and 3.6% in Q2FY13, down QoQ due to jump in tax rate from 18.7% in Q2FY13 to 20.2% in Q3FY13.

- Outlook positive.

Source : Equity Bulls

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