Hatsun Agro Product Limited has informed the Exchange about General Updates on Transcript of the Interview given by Mr. R G Chandramogan, Chairman of the Company to CNBC TV on 16th March 2026
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Chairman R G Chandramogan shared business updates on CNBC TV18. The company is on a run-rate of close to ₹10,000 crore in annual revenue, with 9-month revenue (including the acquired unit) growing around 14%. The recently acquired unit has now fully merged, and from this month-end reporting will be standalone. Milk procurement prices have risen 8-10%, while the company took a selling price hike of about 6% a week ago. He flagged concerns over packaging material costs (plastic, gas for wafer cones) which could rise 30-40% due to ongoing war-related disruptions, with current inventory covering about 1.5 months. Margins stood at 29-30% in the last reported quarter, and he expects further improvement as depreciation and interest costs fall, supported by a debt-equity ratio now below 1 (down from 1:2-1:3 earlier). Sales outside Tamil Nadu have reached 45%, targeted to hit 50% in two years, and capacity utilisation is improving.
Near-term margin pressure is a risk as input costs (procurement +8-10%, packaging potentially +30-40%) may outpace the 6% price hike taken. However, structural positives remain: the company's own 4,500-outlet distribution keeps margins 1.5x-2x of listed peers, and lower interest/depreciation should support earnings growth. Shareholders should monitor whether the company can pass on further packaging cost increases when inventory runs out.