Parag Milk Foods hits 52-week high post Q4 results

Parag Milk Foods hit a 52-week high of Rs 327, up 7% on the BSE in intra-day trade, after the company reported 18% year-on-year (YoY) growth in its consolidated net profit at Rs 262 million in March quarter (Q4FY18), on the back of healthy growth in operational revenue.
The company is a manufacturer and marketer of diary-based branded products in India, and had reported a profit of Rs 221 million in the same quarter year ago.

Consolidated revenue in Q4FY18 grew 20.9% YoY at Rs 5,178 million, as compared to Rs 4,284 million in Q4FY17. The growth was achieved through aggressive distribution expansion and addition of new variants in the value added category.

EBIDTA (Earnings before interest, tax, depreciation and amortization) margins improved 140 bps to 11.5% during the quarter.

“Parag Milk Foods has been successful in creating strong brands like GO, Gowardhan and in introducing new products like Whey Protein. It has become the 2nd player in processed cheese (after Amul) in a short span of 10 years and commands 33% market share. Rising revenue share of high-margin value added products (VAP) is likely to boost its margins in coming years,” Angel Broking said in recent report