Quarterly Update Q2FY16

developments, information or events.

amend, modify or revise any such statements on the basis of subsequent

any investment decision. The Company assumes no responsibility to publicly

assessments and judgments by considering all relevant factors before making

Therefore the investors are requested to make their own independent

either expressed or implied in the statement depending on the circumstances.

accurate or will be realized. Actual results might differ materially from those

expectations of future events, the Company cannot guarantee that these are

forward-looking statements. Since these are based on certain assumptions and

product development, market position, expenditures and financial results, are

about the future, but not limited to the Companys strategy for growth,

estimates and so on. All statements that address expectations or projections

plans, expects, will, anticipates, believes, intends, projects,

The release contains forward-looking statements, identified by words like

 On Bakery front, EBITDA is at Rs 0.1 mn as against Rs -0.5 mn in Q2 previous year

On Agri front, EBITDA is at Rs -1 mn as against Rs 3 mn in Q2 previous year

Retail EBITDA is at Rs -35 mn as against Rs -15 mn in Q2 previous year

Retail Revenue is up by 13 % at Rs 1386 mn over previous FY

Branded Value Added Products in Dairy surged forward by 28 % at Rs 883 mn

Dairy EBITDA is at Rs 392 mn

Dairy Revenue is higher by 15 % at Rs 4419 mn

Total Turnover has improved on YoY by 15 % at Rs 5868 mn

Q2FY16 Key Highlights

10.48
30.30
883
1389

Liquid milk sales (llpd)

Liquid milk price real. (Rs/l)

Milk Procurement (llpd)

Milk procurement price (Rs/l)

Branded Value added Products

sales (Rs mn)

No. of Parlours

llpd: lakh liters per day

Q2FY16
8.42
36.44

Q2FY16 Key metrics - Dairy

1245

691

9.08
30.96

Q2FY15
8.32
36.99

28%

15%
-2%

YOY %
1%
-1%

517
691
883

Q2FY14

Q2FY15

Q2FY16

As % of Branded Value
Added Products

74
76
78

Year

Q2FY14

Q2FY15

Q2FY16

Packaged Curd Sales

Sales(Rs. in mn)

72

73

74

75

76

77

78

Q2FY14

Q2FY15

Q2FY16

Packaged Curd Sales as % of Branded

Value Added Products

200

400

600

800

1000

517
Q2FY14

74

Year

691
Q2FY15

76

Branded Value Added Products

Branded Value Added Products

Sales(Rs. in mn)

Q2FY16 Key metrics - Dairy (Branded Value Added Products)

883
Q2FY16

78

 Export turnover during Q2FY16 of Rs 48 mn

Heritage Dairy Parlors as on 30.09.2015 are 1389.

%) in Q2FY15

EBITDA of Rs 392 mn (EBITDA margin of 8.88 %) as against Rs 190 mn (EBITDA margin of 4.96

15 % yoy growth in milk procurement to 10.48 LLPD (lakh litres per day)

Products sales)

32 % yoy growth in Packaged Curd sales (accounts for approx. 78 % of Branded Value Added

28 % yoy growth achieved in Branded Value Added Products sales

15 % yoy growth in turnover to Rs 4419 mn

Q2FY16
Key Highlights
- Dairy
Key Highlights
- Dairy

Q2FY15
82
304
1199
1079
66
82
1227
236
19.25%
20.51%
80
6.52%
95
105
-15

Q2FY16
96
345
1157

1203
78
105
1386
264
19.04%
20.21%
80
5.77%
115
111
-35

Avg store sales(Rs/sq ft/month)

Revenue Breakup(Rs mn)
Heritage Fresh Stores
Institutional, General Trade & Others
Other Operating Income
Total Revenue(Rs mn)

Total Gross Profit

Gross margin(%)
Gross margin Heritage Fresh Stores(%)

EBITDA at store level(Rs mn)

EBITDA margin(%)
Regional & Corporate Overheads(Rs mn)
Overheads/sqft/month
EBITDA(Rs mn)

Particulars
No. of stores
Total Carpet Area('000 sq ft)

Q2FY16 Key metrics - Retail

0.00
-11.51
21.68
5.40
-136

11.73
-1.08
-1.47

11.47
17.92
28.50
12.96

-3.51

YOY %
17.07
13.38

10

6.56
6.52
5.77

Q2FY14

Q2FY15

Q2FY16

EBIDTA(Rs in mn)
-34
-15
-35

Year

Q2FY14

Q2FY15

Q2FY16

Retail Division

EBIDTA Margin%

Year

0.00

-5.00

-10.00

-15.00

-20.00

-25.00

-30.00

-35.00

5.20

5.40

5.60

5.80

6.00

6.20

6.40

6.60

Q2FY15

Q2FY16

Retail Division EBIDTA(Rs in mn)

Q2FY14

6.56
Q2FY14

-34.00

Retail Division

Retail Division - EBIDTA Margin %

6.52
Q2FY15

-15.00

Q2FY16 Key metrics - Retail

5.77
Q2FY16

-35.00

11

 4 stores opened and 2 stores closed during Q2FY16

in Q2FY16 as against Rs 105 per sqft/month in Q2FY15

12

Regional & Corporate Overheads increased by Rs 5.62 per sqft/month to Rs. 111 per sqft/month

161/sqft/month in Q2FY15

Store Fixed Cost increased by Rs 3.78/sqft/month to Rs 164/sqft/month in Q2FY16 as against Rs

bps

Store Gross margin decreased by 30 bps to 20.21 % and overall gross margin decreased by 21

No. of Bills (NOB) increased by 1.1% yoy to 4.63 mn (3.87 mn in Q2FY15)

Average Bill Value (ABV) decreased by 3.4 % yoy to Rs 252(Rs 261 in Q2FY15)

Same Store de-growth (considering 74 comparable stores) stood at 2.3 %

Q2FY16
Key Highlights
- Retail
Key Highlights
- Retail

 Capital Employed for Renewable Energy division Rs 131.07 mn.

Turnover in Q2FY16 was Rs 6.31 mn.

requirement.

13

Hyderabad on September 29, 2013, under REC mechanism and to meet for the captive energy

2.34 MWP Solar Power Project at IPH, Masjid Adavi Village, Mulugu Mandal, in Medak district near

Heritage Foods Ltd has in association with Mahindra EPC Services Private Limited has commissioned a

Q2FY16 Key Highlights

Renewable
Energy
Renewable
Energy

Paid-up Equity Share Capital

6.59
6.59

Number of shares

Percentage of Public shareholding

4.62

4.62

2.08

2.08

2.08

2.08

2319.90

483.52

483.52

483.52

-39.43

-0.47

156.00

599.62

599.62

375.70

975.32

81.33

893.99

50344.24

4783.33

835.89

2650.04

-213.41

10683.30

31605.09

51238.23

844.08

50394.15

Unaudited

30-Sep-14

11.21

11.21

11.21

11.21

2319.90

2601.11

2601.11

2601.11

-70.86

-18.07

1556.00

4068.18

4068.18

837.30

4905.49

292.90

4612.59

111916.13

11366.42

1697.88

6678.26

2160.60

23064.49

66948.48

116528.72

2129.18

114399.54

Unaudited

30-Sep-15

4.37

4.37

4.37

4.37

2319.90

1013.26

1013.26

1013.26

-115.52

-0.45

364.00

1261.29

1261.29

805.65

2066.94

170.15

1896.79

99918.20

9499.20

1652.93

5365.63

-485.04

20837.67

63047.81

101814.99

1740.51

100074.48

Unaudited

30-Sep-14

Half Year Ended

STANDALONE

12.16

12.16

12.16

12.16

16981.26 -

2319.90

2821.02

2821.02

2821.02

-76.02

-0.45

1169.36

3913.91

3913.91

1593.01

5506.92

702.66

4804.26

202492.39

19522.50

3399.03

11072.42

-5079.25

42184.17

131393.51

207296.65

3948.51

203348.14

Audited

31-Mar-15

Year Ended

6.59

6.59

6.59

6.59

2319.90

1529.31
-

-0.02 -

1529.33

1529.33

-35.24

-19.15

905.00

2379.95

2379.95

400.79

2780.74

124.06

2656.68

56026.56

5791.08

863.71

3501.50

2062.36

11938.69

31869.22

58683.24

1080.29

57602.95

Unaudited

30-Sep-15

4.62

4.62

4.62

4.62

2319.90

1071.78

1071.78

1071.78

-35.63

1.08

651.00

1688.23

1688.23

436.51

2124.74

168.84

1955.90

55889.57

5575.34

834.17

3176.76

98.24

11125.80

35079.26

57845.47

1048.89

56796.58

Unaudited

30-Jun-15

Quarter Ended

2.08

2.08

2.08

2.08

2319.90

483.43

-0.09

483.52

483.52

-39.43

-0.47

156.00

599.62

599.62

375.70

975.32

81.33

893.99

50344.24

4783.33

835.89

2650.04

-213.41

10683.30

31605.09

51238.23

844.08

50394.15

Unaudited

30-Sep-14

11.21

11.21

11.21

11.21

2319.90

2601.09

-0.02

2601.11

2601.11

-70.86

-18.06

1556.00

4068.18

4068.18

837.30

4905.49

292.90

4612.59

111916.13

11366.42

1697.88

6678.26

2160.60

23064.49

66948.48

116528.72

2129.18

114399.54

Unaudited

30-Sep-15

4.37

4.37

4.37

4.37

2319.90

1013.14

-0.12

1013.26

1013.26

-115.52

-0.45

364.00

1261.29

1261.29

805.65

2066.94

170.15

1896.79

99918.20

9499.20

1652.93

5365.63

-485.03

20837.67

63047.81

101814.99

1740.51

100074.48

Unaudited

30-Sep-14

Half Year Ended

CONSOLIDATED

12.22

12.22

12.22

12.22

16972.70

2319.90

2835.60

0.16

-0.28

2836.04

2836.04

-76.02

-0.45

1169.36

3928.92

3928.92

1593.01

5521.94

717.83

4804.11

202492.54

19522.66

3399.03

11072.42

-5079.26

42184.17

131393.51

207296.65

3948.51

203348.14

Audited

31-Mar-15

Year Ended

59.97

59.97

59.97

59.97

59.97

59.97

59.97

59.97

59.97

59.97

59.97

14

59.97

13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154 13,913,154

6.59

Diluted (`)

Public Share Holding

6.59

Basic (`)

4.62

4.62

2319.90
-

1071.78

1071.78

2319.90

-35.63

1.08

651.00

1688.23

1071.78

Diluted (`)

Earning Per Share After Extra Ordinary Items

1688.23

436.51

2124.74

168.84

1529.33

1529.33

Basic (`)

Earning Per Share before Extra Ordinary Items

Reserves (excluding revaluation reserve)

15) Minority interest

16) Net Profit/ (Loss) after taxes, minority interest and share of profit / (loss) of associates (13+14+15)

14) Share of profit / (loss) of associates

13) Net Profit/(Loss) (11-12)

12) Extraordinary Items

1529.33

-35.24

Deferred Tax Charge/(Credit)

-

-19.14

11) Profit/(Loss) from ordinary activities after tax (9-10)

905.00

Prior period tax

2379.95

2379.95

400.79

2780.74

124.06

1955.90

55889.57

56026.56
2656.68

5575.34

834.17

3176.76

98.24

11125.80

35079.26

57845.47

1048.89

5791.08

Current Tax/MAT

10) Tax expense

9) Profit/(Loss) from ordinary activities before tax (7-8)

8) Exceptional items

7) Profit/(Loss) from ordinary activities after finance cost and before exceptional items (5+6)

6) Finance cost

5) Profit/(Loss) from ordinary activities before finance cost and exceptional items (3+4)

4) Other income

3) Profit / (Loss) from operations before other income, finance costs & exceptional items(1-2)

Total Expenses

Other expenses

863.71

3501.50

Employees benefit expense

Depreciation and Amortisation expense

2062.36

11938.69

Changes in inventories of finished goods, work-in-progress and stock in trade

31869.22

Purchase of stock in trade

58683.24

1080.29

56796.58

Unaudited

Unaudited
57602.95

30-Jun-15

30-Sep-15

Quarter Ended

Cost of materials consumed

2) Expenses

Total income from operations

Other Operating Income

Net Sales/Income from Operations

1) Income from operations

PARTICULARS

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2015 (` in Lakhs)

Q2FY16 Financial Results

60512.37

Total Segment Revenue

1310.72

e. Renewable Energy

Total

h. Unallocated

28461.50

-154.85

1054.41

d. Bakery

g. Heritage Conpro Ltd

3173.43

c. Agri

7059.11

f. HFRL

16018.67

a. Dairy

2379.95

3.06

3.97

b. Retail

Segment Assets -Segment Liabilities)

3. Capital Employed

Total Profit before Tax

ii. Other un-allocable Income

Add: i. Interest Income

0.00

400.79

Less: i. Finance costs

ii. Other un-allocable Expenditure net off

2773.71

Total Segment Results

20.46

e. Renewable Energy

-19.14

d. Bakery

g. Heritage Conpro Ltd

-63.79

c. Agri

-574.14

f. HFRL

3410.32

a. Dairy

58683.24

b. Retail

(Profit (+) / (Loss) (-) before finance costs and tax )

2. Segment Results

Net Sales / Income from Operations

1829.13

Less: Inter Segment Revenue

g. Heritage Conpro Ltd

63.12

f. HFRL

e. Renewable Energy

193.90

2201.08

c. Agri

d. Bakery

44191.58
13862.69

34137.62

53.52

1566.13

1068.16

3257.42

8299.78

19892.61

1688.23

0.00

31.78

0.00

436.51

2092.96

17.98

-6.22

-21.90

-519.67

2622.77

57845.47

1834.23

59679.70

65.81

205.15

2338.18

13393.47

43677.09

Unaudited

Unaudited

a. Dairy

30-Jun-15

Quarter Ended

30-Sep-15

b. Retail

1. Segment Revenue

PARTICULARS

SEGMENT REPORTING FOR THE QUARTER AND HALF YEAR ENDED

SEPTEMBER 30, 2015 (` in Lakhs)

28612.52

79.52

1626.82

1083.13

3304.30

7406.67

15112.09

599.62

0.04

4.21

375.70

971.08

3.27

-27.92

-28.77

-374.92

1399.42

51238.23

1677.72

52915.95

54.35

139.36

2135.19

12272.74

38314.31

Unaudited

30-Sep-14

28461.50

-154.85

1310.72

1054.41

3173.43

7059.11

16018.67

4068.18

3.06

35.75

837.30

4866.67

38.44

-25.36

-85.69

-1093.81

6033.09

116528.72

3663.36

120192.08

128.93

399.05

4539.27

27256.16

87868.67

Unaudited

30-Sep-15

28612.52

79.52

1626.82

1083.13

3304.30

7406.67

15112.09

1261.29

0.04

9.24

805.65

2057.67

21.11

-56.74

-41.14

-816.91

2951.35

101814.99

3426.24

105241.23

114.10

248.19

4258.66

24041.40

76578.89

Unaudited

30-Sep-14

Half Year Ended

STANDALONE

Q2FY16 Financial Results - Segmental

33587.22

222.41

1588.95

1075.13

3135.92

8877.40

18687.41

3913.91

0.04

37.42

1.24

1593.01

5470.70

70.53

-84.46

-125.47

-1107.36

6717.47

207296.65

6932.18

214228.82

257.03

588.92

8400.16

49397.00

155585.71

Audited

31-Mar-15

Year Ended

28460.79

-154.85

-0.32

-0.38

1310.72

1054.41

3173.43

7059.11

16018.67

2379.95

3.06

3.97

0.00

400.79

2773.71

20.46

-19.14

-63.79

-574.14

3410.32

58683.24

1829.13

60512.37

63.12

193.90

2201.08

13862.69

44191.58

Unaudited

30-Sep-15

34136.69

53.52

-0.41

-0.52

1566.13

1068.16

3257.42

8299.78

19892.61

1688.23

0.00

31.78

0.00

436.51

2092.96

17.98

-6.22

-21.90

-519.67

2622.77

57845.47

1834.23

59679.70

65.81

205.15

2338.18

13393.47

43677.09

Unaudited

30-Jun-15

Quarter Ended

28612.25

79.52

-0.13

-0.13

1626.82

1083.13

3304.30

7406.67

15112.09

599.62

0.04

4.21

375.70

971.08

3.27

-27.92

-28.77

-374.92

1399.42

51238.23

1677.72

52915.95

54.35

139.36

2135.19

12272.74

38314.31

Unaudited

30-Sep-14

28460.79

-154.85

-0.32

-0.38

1310.72

1054.41

3173.43

7059.11

16018.67

4068.18

3.06

35.75

837.30

4866.67

38.44

-25.36

-85.69

-1093.81

6033.09

116528.72

3663.36

120192.08

128.93

399.05

4539.27

27256.16

87868.67

Unaudited

30-Sep-15

28612.25

79.52

-0.13

-0.13

1626.82

1083.13

3304.30

7406.67

15112.09

1261.30

0.04

9.24

805.65

2057.67

21.11

-56.74

-41.14

-816.91

2951.35

101814.99

3426.24

105241.23

114.10

248.19

4258.66

24041.40

76578.89

Unaudited

30-Sep-14

Half Year Ended

CONSOLIDATED

15

33586.29

222.41

-0.41

-0.52

1588.95

1075.13

3135.92

8877.40

18687.41

3928.92

0.04

37.42

-15.17

1593.01

5469.31

-0.63

-0.76

70.53

-84.46

-125.47

-1107.36

6717.47

207296.65

6932.18

214228.82

257.03

588.92

8400.16

49397.00

155585.71

Audited

31-Mar-15

Year Ended

9.28
0.82
1.10
11.99
23.19

FIIs

Domestic Institutions

Others

Total

mn shares

Promoters

As on September 2015

Q2FY16 Shareholding Pattern

100

51.68

4.77

3.53

40.03

% holding

16

*LPD : liters per day

Ice Cream (LPD)

Curd (Kgs/Day)

Liquid Milk Sales (LPD)

Processing Capacity (LPD) as on 30.09.2015

No. of processing and Packing Plants

Chilling Capacity (LPD) as on 30.09.2015

No. of Chilling Plants

Average Procurement of Milk (LPD)

Particulars
1,46,245
43

1,93,000
3
3,90,000
2,75,552
34,800
2,221

72

9,69,000
7
7,40,000
2,03,196
77,294
1,395

682

30,845

1,50,034

50,000

2,58,000

13

2,28,003

251

20,832

1,19,636

1,50,000

50,000

17,752

544

130

60,102

50,000

1,40,000

87,829

652

11,895

Telangana Tamil Nadu Karnataka Maharashtra Kerala

5,39,495

Andhra
Pradesh

Widest footprint in India among privately held

dairy companies. Spread across 10 states:
-Andhra Pradesh -Telangana
-Tamil Nadu
-Karnataka
-Maharashtra
-Kerala
-Odisha
-Haryana
-Rajasthan
-Delhi
Present in the highest milk producing states in India.
One of the leading private sector dairy companies in
India in sales and volumes.

Q2FY16 Dairy - Spread of Operations

161

2,690

7,250

Odisha

2,729

14,194

75,000

Total

139

14

17

5,254

1,69,972

8,41,859

- 14,55,000

30,000 16,40,000

30,057 10,49,380

Haryana/
Delhi
Rajasthan

87 % sales

1,400

1,10,000

26
5,600

11,15,000

11
- % sales

Q2FY16 Distribution Network Structure

-2 % sales

18

19

20

Ice Cream/Frozen Desert

Started in 2006 as a logical extension to dairy

division to benefit from the food and grocery retail
boom in India
Average store area is ~3,000 sft and contains over
6,000 SKUs
A typical store is on 9 years lease
International concepts/standards in branding,
layout, design and display
Layout, ambience and cleanliness standards have
become a benchmark in the industry. All stores are
air-conditioned, operated and maintained by the
company
Rated the highest in Customer Satisfaction among
Food & Grocery chains in South India by WPP
group.

21

22

23

Q2FY16 Economic Activity - Manpower

24

25