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May 11, 2023
- MSCI To Add HAL, Max Healthcare, Cummins, Ashok Leyland In May Review: Morgan Stanley
- · MSCI is likely to include four stocks and change the weightings of nearly five companies in the upcoming May review.
- · Index provider MSCI is likely to include four stocks and change the weightage of nearly five companies in this month's index review, according to Morgan Stanley.
- · The brokerage expects MSCI to include Hindustan Aeronautics Ltd., Max Healthcare Institute Ltd., Cummins India Ltd., and Ashok Leyland Ltd. in the index.
- · The additions are expected to bring $1.3 billion, or about Rs 10,632.58 crore, of inflows.
- Media Report
- Milk prices likely to soften in 5-6 months: Heritage Foods CEO
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- KV KURMANATH HYDERABAD
- The price of procuring milk will likely soften over the next 5-6 months and it will turn out to be good for dairy companies, Heritage Food Limited Chief Executive Office Srideep Kesavan has said.
- Hoping that the current momentum in milk production continues in rural areas, he said, “for the last one month or so, it has been a kind of stabilised. I’m not saying that it is plateaued. But at least the momentum of increase in prices has slowed down.”
- On the spiralling cost of procurement and how it is impacting the company, Kesavan said, “We started seeing the increase in December 2021. From the beginning of 2022, there has been no stopping at all. Prices have been going up almost every month. In the last financial year alone, the procurement costs have gone up for us by at least 15 per cent.”
- Kesavan said, “We are seeing the milk coming into the market and the gap between demand and supply is being bridged.”
- Set to meet target
- Heritage Foods Limitedis confident of achieving its target of becoming a ₹6,000 crore revenue company in the next three years. “We set out a target to become a ₹6,000 crore revenue company about five years ago. But unfortunately, we were hit by the pandemic. That affected not just our business but many businesses across the country. There was a couple of years of slowdown after that,” Kesavan told businessline on the sidelines of the Food Conclave held here recently. The 30-year-old dairy firm, which has a presence in 11 States, registered an income of ₹2,423 crore for the ninth-month period ended December 31, 2022, as against ₹2,681 crore for the full year 2021-22. In FY19-20, the company registered an income of ₹2,726 crore.Kesavan said, “After the slowdown, for the last six-seven quarters, we have been consistently registering revenue growth of 20 per cent. We have kept that momentum. The top line is growing robustly and we will be able to achieve ₹6,000 crore turnover within three years.”
- Revenue break up
- Replying to a question on the revenue contribution from product segments, Kesavan said milk contributed about 63 per cent, a couple of percentage points from the animal feed business, and 34-35 per cent from value-added products.
- “We break up the value-added product segment into fats (butter and ghee) and other value-added products because of the margin profile of the former. We will be close to about 30 per cent of value-added products and about 4 to 5 per cent of fats,” he said.
- Asked whether more and more dairy companies expanding to their non-core areas would put pressure on the margins, Kesavan said, “Heritage has been operating in multiple States for a long time. Many of our non-core markets are as profitable as our core markets. It is a matter of finding the right business model. I really do not see any challenge because operating in a different State would have a different profitability offering compared to the home State.”
- Thursday, 11th May, 2023
- Nifty @ 18315 ( + 49 ) Sensex @ 61940 ( + 179 )
- *@ Global Indices*
- U.S. stocks closed mixed, Nasdaq closes 1% higher, the annual inflation rate in the US fell to 4.9% in April 2023, the lowest since April 2021
- *@ Street sentiment*
- Fear & Greed Index
