Parag Milk Foods Limited (PMFL), an Indian manufacturer and marketer of dairy-based branded products, has reported a significant increase of 268.8 percent year-on-year (YoY) in consolidated profit after tax (PAT) to INR 34.16 crore for the third quarter ending December 2023. This marks a substantial rise from the consolidated PAT of INR 9.26 crore reported in the corresponding period of the previous fiscal year, as stated by the company in a filing with the Bombay Stock Exchange (BSE).
In the third quarter of FY24, Parag Milk Foods Limited saw an 8.8 percent year-on-year increase in its consolidated revenue from operations, reaching INR 800.84 crore, driven by robust growth in the ghee and protein categories. This compares to the company’s consolidated revenue from operations of INR 735.89 crore in the third quarter of FY23.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 80.5% year-on-year, reaching an EBITDA margin of 8.6% in Q3 FY24, a notable improvement from the 5.2% margin in Q3 FY23.
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The company witnessed a significant increase in its gross profit margin due to lower milk prices and enhancements in the product mix. The gross profit margin surged by 520 basis points year-on-year, soaring from 21.1% in Q3 FY23 to 26.5% in Q3 FY24.
PMFL is continuously investing in strengthening its brand through an innovative mix of marketing strategies. The company is actively expanding its distribution network, with the goal of tripling its reach to over 1.5 million retail outlets.
Commenting on the results Devendra Shah, Chairman, PMFL said, “Over the last two quarters, the milk procurement prices have been benign and we expect it to remain stable ahead. Improving consumer sentiments coupled with our continuous focus on the value-added products and the health and nutrition segment is expected to drive healthy performance in the future.”
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Shah further said, “We are in the midst of a transformation journey aimed at driving efficiency across the value chain. With an ensuing expansion and acceleration of the distribution footprint, we are confident to show robust growth in our revenues and profitability.”