Parag Milk Foods, a leading dairy company, demonstrated exceptional financial prowess in the first quarter (Q1) ended June 30, 2023. With a remarkable surge in its consolidated profit after tax (PAT), the company’s earnings soared to INR 21.42 crore, effectively doubling its performance compared to the same period in the previous fiscal year. This impressive feat was driven by strong volume growth, reflecting Parag Milk Foods’ commitment to excellence and its ability to capitalize on market opportunities.
According to a BSE filing, the company reported a consolidated PAT of INR 10.25 crore in the corresponding period last year. Such substantial progress highlights the company’s steady trajectory towards financial success and reinforces its position as a major player in the dairy industry.
In Q1 FY24, Parag Milk Foods witnessed a notable rise in its total income, reaching INR 755.72 crore. This marks a significant increase compared to the total income of INR 722.12 crore recorded in Q1 FY23. The surge in total income indicates the company’s ability to generate greater revenues during this period, reflecting its continued growth and positive performance in the market.
In Q1 FY24, the company witnessed a rise in total expenses, reaching INR 740.55 crore, as compared to INR 708.53 crore in the corresponding period of the previous fiscal year.
For the quarter under review, the company’s EBITDA amounted to INR 46.5 crore, showcasing an EBITDA margin of 6.2 per cent.
During the quarter, the dairy FMCG firm emphasized its commitment to core categories such as Ghee and cheese, as well as its new age businesses – Avvatar and Pride of Cows. The company maintained a strong focus on these segments. Additionally, it expressed its intention to continue investing in marketing and brand-building initiatives.
Furthermore, the company engaged in a strategic collaboration with Starplus for IPL integration, leveraging this opportunity as a branding activity for its brand Go Cheese. This move demonstrates the company’s proactive approach to promote its products and enhance its brand visibility in the market.
Going forward, Parag Milk Foods has set its sights on continuing to invest in extensive distribution reach and outlet coverage, coupled with a strong focus on introducing innovative offerings and premiumizing its product portfolio. The company’s strategic approach aims to further strengthen its position in the market and cater to evolving consumer preferences. By pursuing these initiatives, Parag Milk Foods is poised to drive sustainable growth and maintain its status as a prominent player in the dairy industry.
The company stated that the milk procurement prices have entered a stabilization phase, driven by steady demand and an early onset of the flush season. As a result of this favorable situation, the quarter witnessed margin expansion for Parag Milk Foods.
Devendra Shah, Chairman of the company said, “We are pursuing market share gain across categories and investing in various capabilities and retail network expansion. Going forward, on the back of a softening input cost environment and with the onset of the festive demand the growth momentum is expected to accelerate and, we hope to deliver healthy profitability.”
