Hatsun Agro Q3 Results Review - Strong Margins Inspite Of Steep Inflation In Input Prices: ICICI Securities

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Takeaways from Hatsun Agro Products Ltd.'s Q3 FY23:considering multiple rounds of price hike in nine months-FY23, we believe volumes have likely declined in Q3 FY23 andmilk procurement prices continue to remain high due to muted flush season in FY23. While Hatsun’s gross margin declined 60 basis points YoY, the Ebitda margin expanded 64 basis points due to lower staff cost and other expenditure (lower ad-spend in our view). We believe gross margins have bottomed out and model margin recovery from H1 FY24. We model Hatsun to report profit after tax compound annual growth rate of 25.2% over FY22-24E with:high single-digit growth in milk procurement,better utilisation of three new plants andhigher share of value-added products especially single-serve ice creams.We remain structurally positive on Hatsun due to its competitive advantages and growth opportunity in South India but need more comfort on valuations to be constructive..Click on the attachment to read the full report:.Rallis India Q3 Results Review - Dismal Performance; Miss On All Fronts: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Hatsun Agro Q3 Results Review - Strong Margins Inspite Of Steep Inflation In Input Prices: ICICI Securities

We believe gross margins have bottomed out and model margin recovery from H1 FY24.

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Hatsun Agro Q3 Results Review - Strong Margins Inspite Of Steep Inflation In Input Prices: ICICI Securities

We believe gross margins have bottomed out and model margin recovery from H1 FY24.

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