Revenue in Q1FY19 stood at INR 12.3 Bn (+5.9% YoY), which was marginally below our estimates of INR 12.9 Bn. The top line was mainly driven by value added products, Aroon Ice-creams and better demand across all the categories. EBIDTA stood at INR 1.2 Bn (+18.9% YoY), with OPM at 9.9% (+108 bps YoY). The reduction in milk prices and purchase of other finished goods has resulted in better...

Launch of new premium products & diversify its product portfolio:Hatsun receives 90% of its revenues from dairy products and remaining from ice cream business. Milk and curd are sold through the brand Arokya and value added products are sold under brand 'Hatsun''. Products include panner, curd, ghee and butter which receive twice the margins of liquid milk. Arun Ice creams has been one of the well known brands in Tamil Nadu and is continuously launching new flavors.