News Details

Results - Analysis

Parag Milk Foods

03-May-25    12:20

On consolidated basis

Quarter ended March 2025 compared with Quarter ended March 2024.

Net sales (including other operating income) of Parag Milk Foods has increased 16.22% to Rs 918.25 crore.''Operating profit margin has jumped from 4.68% to 6.75%, leading to 67.70% rise in operating profit to Rs 62.00 crore.''Raw material cost as a % of total sales (net of stock adjustments) increased from 74.53% to 76.01%. ''Employee cost increased from 4.38% to 4.55%. ''Other expenses fell from 16.37% to 13.00%. ''

Other income rose 72.92% to Rs 13.09 crore.''PBIDT rose 68.59% to Rs 75.09 crore.''Provision for interest rose 53.13% to Rs 25.16 crore.''Loan funds rose to Rs 654.29 crore as of 31 March 2025 from Rs 616.47 crore as of 31 March 2024.''Inventories declined from Rs 615.32 crore as of 31 March 2024 to Rs 577.95 crore as of 31 March 2025.''Sundry debtors were higher at Rs 259.51 crore as of 31 March 2025 compared to Rs 244.26 crore as of 31 March 2024.''Cash and bank balance declined from Rs 27.58 crore as of 31 March 2024 to Rs 25.05 crore as of 31 March 2025.''Investments stood at Rs 4.63 crore as of 31 March 2025 to Rs 4.63 crore as of 31 March 2024.''

PBDT rose 77.62% to Rs 49.93 crore.''Provision for depreciation rose 19.20% to Rs 17.38 crore.''Fixed assets increased to Rs 594.92 crore as of 31 March 2025 from Rs 533.77 crore as of 31 March 2024.''Intangible assets increased from Rs 0.90 crore to Rs 1.98 crore.''

Profit before tax grew 140.58% to Rs 32.55 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was expense of Rs 6.34 crore, compared to Rs 3.71 crore.''Effective tax rate was 19.48% compared to 27.42%.

Minority interest was nil in both the periods.''Net profit attributable to owners of the company increased 166.90% to Rs 26.21 crore.''

Equity capital stood at Rs 119.20 crore as of 31 March 2025 to Rs 119.20 crore as of 31 March 2024.''Per share face Value remained same at Rs 10.00.''

Promoters' stake was 42.61% as of 31 March 2025 ,compared to 42.61% as of 31 March 2024 .''

Full year results analysis.

Net sales (including other operating income) of Parag Milk Foods has increased 9.35% to Rs 3432.21 crore.''Operating profit margin has jumped from 6.39% to 7.36%, leading to 26.02% rise in operating profit to Rs 252.68 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 75.94% to 73.76%. ''Employee cost increased from 3.82% to 4.44%. ''Other expenses rose from 13.96% to 14.31%. ''

Other income rose 60.94% to Rs 40.25 crore.''PBIDT rose 29.90% to Rs 292.93 crore.''Provision for interest rose 17.28% to Rs 93.12 crore.''Loan funds rose to Rs 654.29 crore as of 31 March 2025 from Rs 616.47 crore as of 31 March 2024.''Inventories declined from Rs 615.32 crore as of 31 March 2024 to Rs 577.95 crore as of 31 March 2025.''Sundry debtors were higher at Rs 259.51 crore as of 31 March 2025 compared to Rs 244.26 crore as of 31 March 2024.''Cash and bank balance declined from Rs 27.58 crore as of 31 March 2024 to Rs 25.05 crore as of 31 March 2025.''Investments stood at Rs 4.63 crore as of 31 March 2025 to Rs 4.63 crore as of 31 March 2024.''

PBDT rose 36.75% to Rs 199.81 crore.''Provision for depreciation rose 11.57% to Rs 67.22 crore.''Fixed assets increased to Rs 594.92 crore as of 31 March 2025 from Rs 533.77 crore as of 31 March 2024.''Intangible assets increased from Rs 0.90 crore to Rs 1.98 crore.''

Profit before tax grew 54.43% to Rs 132.59 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was debit of Rs 13.8 crore, compared to credit of Rs 4.73 crore.''Effective tax rate was 10.41% compared to negative 5.51%.

Minority interest was nil in both the periods.''Net profit attributable to owners of the company increased 31.13% to Rs 118.79 crore.''

Equity capital stood at Rs 119.20 crore as of 31 March 2025 to Rs 119.20 crore as of 31 March 2024.''Per share face Value remained same at Rs 10.00.''

Promoters' stake was 42.61% as of 31 March 2025 ,compared to 42.61% as of 31 March 2024 .''

Cash flow from operating activities increased to Rs 212.04 crore for year ended March 2025 from Rs 102.27 crore for year ended March 2024.''Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 125.51 crore, compared to Rs 61.19 crore during the year ended March 2024.''

Other Highlights

In Q4 FY25, the company reported 13% YoY volume growth. In FY25, the business witnessed volume growth of 10% YoY aided by healthy volume growth in its core categories. The core categories of mainly Ghee, Cheese and Paneer have witnessed a volume growth of 18% YoY for Q4FY25 and 17% YoY for FY25.

In FY25, core categories contributed 57% to revenue, Liquid milk 10%, Ingredients & SMP 17%, new age business 6%, and others 10%.

The average milk prices during Q4FY25 were at Rs 37/ litre; up 12% YoY, and FY25 milk prices were at Rs 34/litre; almost at par YoY.

The board has recommended a final dividend of Re 1 per equity share for FY25.

Brand Avvatar, which is a new age business continued its momentum and recorded robust 41% growth YoY. The overall protein portfolio has continued to record market share gains.

Management Comments :
Mr. Devendra Shah, Chairman, Parag Milk Foods said, 'Our performance in FY25 marks a pivotal milestone in Parag Milk Foods' journey towards building a future-ready, sustainable, and profitable business. Delivering the highest-ever revenues back-to-back in multiple quarters, coupled with strong operating cash flows and improved profitability, is a result of our disciplined execution and long-term vision. We have stayed committed to innovation, brand building, and operational excellence, while ensuring agility in a dynamic environment. Our investments in expanding distribution, product diversification, and impact-led marketing are not just building brand equity but creating enduring value. We have strengthened governance by adopting leading best practises together with excellence in business processes to transform the organisation from promoter driven to professional management. As we move ahead, our focus remains on strengthening our leadership in the dairy value-added space, deepening consumer trust, and delivering consistent, profitable growth in a responsible and sustainable manner.'

Parag Milk Foods : Consolidated Results

' Quarter ended Year ended Particulars 202503 202403 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 918.25 790.11 16.22 3,432.21 3,138.70 9.35 OPM (%) 6.75 4.68 207 bps 7.36 6.39 97 bps OP 62.00 36.97 67.70 252.68 200.50 26.02 Other Inc. 13.09 7.57 72.92 40.25 25.01 60.94 PBIDT 75.09 44.54 68.59 292.93 225.51 29.90 Interest 25.16 16.43 53.13 93.12 79.40 17.28 PBDT 49.93 28.11 77.62 199.81 146.11 36.75 Depreciation 17.38 14.58 19.20 67.22 60.25 11.57 PBT 32.55 13.53 140.58 132.59 85.86 54.43 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 32.55 13.53 140.58 132.59 85.86 54.43 EO Income 0 0 - 0 0 - PBT after EO 32.55 13.53 140.58 132.59 85.86 54.43 Taxation 6.34 3.71 70.89 13.8 -4.73 PL PAT 26.21 9.82 166.90 118.79 90.59 31.13 Minority Interest (MI) 0 0 - 0 0 - Net profit 26.21 9.82 166.90 118.79 90.59 31.13 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 26.21 9.82 166.90 118.79 90.59 31.13 EPS (Rs)* 2.20 0.82 166.90 9.95 7.59 31.13 * EPS is on current equity of Rs 119.38 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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