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* Summaries created by AI. Please verify by checking the actual call transcript.
Submission Details • Transcript submitted to NDTV Profit on April 23, 2024. • Compliance with SEBI regulations for BSE and NSE records. • Signed by G. Somasundaram, Company Secretary and Compliance Officer. • Available on the company's website.
Key Points from Mr. R G Chandramogan's Interview • Q4 Performance • Strong performance attributed to volume growth from stable prices. • Market improvement post-COVID enhances operational focus.
• Sales Composition • 96% of sales from branded, value-added products. • Projected increase in value-added products to 35% in FY 25; milk's share to remain at 32%.
• Raw Material Management • Stockpiled milk to mitigate potential supply issues from adverse weather. • Strategy aimed at managing costs and improving margins.
• Financial Outlook • Targeting a 15% increase in topline revenue. • Debt increased from 1,500 to 2,200 crores due to stock accumulation, with expectations for gradual reduction. • Improved capacity utilization, especially in ice cream production. • Confident in achieving revenue guidance of 10,000 crores by FY 25, driven by volume growth.
Export Initiatives • Currently exporting ice cream to 4-5 countries. • Exploring opportunities in smaller markets, specifically Brunei and Seychelles for easier market entry.
Company Performance and Outlook
• Margin Improvement • EBITA margins increased to 11.2% from 8.7% year-over-year. • Improvement attributed to reduced milk prices and enhanced production efficiency.
• Sales Growth Projection • Expected sales growth of 15-20% for FY 2025-26. • Anticipated margin increase to around 12.5-13%.
• Debt Management • Current debt at approximately 2000 crores. • Potential reduction to 500 crores by mid-FY 2026, contingent on market conditions.
• Value-Added Products • Strong growth in value-added products, making up 30% of the business.
• Market Dynamics • Tamil Nadu's contribution to sales expected to decline from 52% to 48% as growth shifts to new markets.
• Strategic Focus • Commitment to maintaining market leadership and improving profitability.
Company Outlook
• Interview Date: April 1, 2024 • Interviewee: Mr. R G Chandramogan, Chairman of Hatsun Agro Product Limited
Growth Projections
• Volume Growth: Projected at 15% for FY25 • Factors: Improved capacity utilization and stable milk arrivals • Margins: Expected increase of 150 basis points • Topline Growth: Anticipated at 15% • Bottom-line Growth: Expected increase of 1-1.5%
Segment Performance
• Ice Cream and Curd: Anticipated strong performance • Drivers: Favorable weather conditions and recovering market post-COVID
Debt Management
• Current Debt: Approximately ₹1,600 crores • Projected Reduction: • To ₹1,200-1,300 crores by June 2024 • Target of ₹500 crores by mid-2025
Competitive Edge
• Technological Investments: Focused on enhancing ice cream production
Company Performance Overview
• Interview Date: October 20, 2023 • Interviewee: Mr. R G Chandramogan, Chairman of Hatsun Agro Product Limited
Key Highlights
• Margin Improvement: Significant improvement due to: • Increased milk availability • Rise in other income • Volume Growth Projection: Anticipated 20% growth for the second half of the fiscal year.
Financial Expectations
• Revenue and EBITDA: • Sustained revenue and EBITDA margins • Expected EBITDA to remain over 12%
Debt Reduction Strategy
• Debt Goals: • Reduce debt to below 1,000 crores by June 2024 • Further reduce to 500 crores within two years
Future Outlook
• Optimism: Positive performance anticipated in upcoming quarters due to: • Better sales • Improved profitability
Company Performance and Outlook
• Interview Details • Conducted with CNBC TV18 on July 20, 2023 • Speaker: Mr. R G Chandramogan, Chairman of Hatsun Agro Product Limited
• Financial Performance • Improved gross margins in Q1 compared to the previous year • Challenges faced due to milk availability
• Revenue Growth Goals • Targeting double-digit revenue growth for FY 24 • Anticipation of better milk supply and recovery in the commodity business
• Business Segments • All segments, including ice cream and curd, are performing well • Contributing to overall growth
• Debt Reduction Plans • Aim to reduce debt from ₹1,500 crores to around ₹500 crores in 1-2 years • Strategies include selling windmill assets and transitioning to solar energy
• Margin Expectations • Optimistic about maintaining margins of 12-13% in the future
Submission to Stock Exchanges
• Hatsun Agro Product Limited submitted a letter to BSE and NSE on May 16, 2023. • The letter included a transcript of an interview with Chairman R G Chandramogan aired on May 11, 2023. • Submission complies with SEBI regulations; transcript available on the company's website. • Letter signed digitally by G. Somasundaram, Company Secretary and Compliance Officer.
Interview Highlights
• Recovery from Inflation: • Discussed recovery from raw material inflation affecting gross margins. • Inflation has softened since April 2023. • Expected gross margins to stabilize around 30% for FY 2024, up from a low of 24%.
• Product Demand: • Milk demand has slowed, but ice cream and curd are growing well.
• Revenue Growth: • Anticipates double-digit revenue growth of 12-13% as inflationary pressures ease. • Potential peak revenues of around 10,000 crores in the coming years, though commitments are premature.
• Expansion Plans: • Focus on expanding into non-south geographies. • Navigating challenges from competitors and market dynamics.
Company Communication
• Sender: Hatsun Agro Product Limited • Addresses: Registered and corporate office in Chennai, Tamil Nadu • Contact Information: Included in the document • Interview Reference: Transcript of interview with Mr. R G Chandramogan, Chairman • Interview Date: April 18, 2023 • Compliance: In accordance with SEBI regulations • Transcript Availability: Accessible on the company's website • Signatory: Gopalan Somasundaram, Company Secretary and Compliance Officer • Date of Communication: April 25, 2023
Interview Insights
• Milk Shortages: Addressed concerns about potential shortages and inflation • Demand-Supply Mismatch: Noted temporary issues earlier in the year, now improving • Milk Flush Season: Expected to stabilize supply by June • Local Production: Assured that local production will meet demand, no need for imports • Impact of Inflation: Discussed effects on farmers; prices may moderate by 3-4% • Government Intervention: Suggested reducing taxes on milk products to ease inflation • Outlook: Expressed optimism about the recovery and stability of the dairy sector
Company Performance Overview
• Interview Date: January 20, 2023 • Interviewee: Mr. R G Chandramogan, Chairman of Hatsun Agro Product • Context: Discussion followed a Board meeting on January 19.
Q3 Performance Insights
• Mixed Results: • EBITDA increased year-over-year. • Profit declined due to higher depreciation and interest costs. • Milk Procurement Challenges: • Adverse weather impacted procurement. • Anticipated improvements in ice cream and curd season.
Pricing and Demand
• Milk Procurement Prices: • Increased by 16%. • Price hikes implemented in phases, potentially affecting demand volumes.
Future Projections
• Growth Expectations for FY 2024: • Projected revenue increase of 14-15%. • Anticipated recovery in growth without significant challenges.
Financial Strategy
• Debt Reduction Focus: • Recent Rights Issue aimed at lowering debt-to-equity ratio below 1:1.
Competitive Landscape
• Market Competition: • Primarily from direct-to-consumer brands. • Hatsun's focus remains on dairy fat ice cream.
Overall Outlook
• Optimism: • Positive sentiment regarding future performance and market conditions.