Heritage Foods climbs over 5% on Reliance's dairy biz growth expectations

NEW DELHI: Shares of Heritage Foods climbed over 5 per cent on Wednesday after the N Chandrababu Naidu-backed company said it expects its recent acquisition of Reliance’s dairy business to break even by the third quarter of this financial year.

Following the announcement, the stock rose 5.88 per cent to close at Rs 1,335.45 on BSE.

For the first quarter of FY18, the acquired business made a loss of 10 per cent at profit before tax (PBT) level.

According to M Sambasiva Rao, president, Heritage Foods, the Hyderabad-based company expects to achieve break even of Reliance’s dairy business which Heritage acquired couple of months back by the end of third quarter of FY18, ET reported.

“This will be achieved by closure of milk procurement at loss making routes and shifting the processing and packaging of milk from third party facilities to Heritage’s own facilities.” Reliance’s dairy business generated revenue of Rs 67 crore revenues in Q1 FY18.