Parag Milk slumps after Q1 PAT tumbles 88% YoY

Parag Milk Foods tumbled 8.36% to Rs 98.7 after the company's consolidated net profit slumped 88% to Rs 3.23 crore on 31% decline in net sales to Rs Rs 435.59 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) was reported at Rs 6.96 crore in Q1 June 2020, registering a fall of 81% from Rs 37 crore in Q1 June 2019. Total tax expense fell 61% to Rs 3.72 crore in Q1 June 2020 over Q1 June 2019.

Consolidated EBITDA for Q1 June 2020 stood at Rs 29.70, falling 47.7% from Rs 56.8 crore in Q1 June 2019. EBITDA margin declined to 6.8% in Q1 June 2020 from 9% in Q1 June 2019.

The company said the growth during the quarter was significantly impacted due to lockdown imposed from the last week of March 2020, which extended during the most part of FY21. Milk prices started softening at the start of the quarter and procurement improved due to the late onset of the flush season in March. However, temporary disruptions in the supply chain, and a decline in the sale of commodities and HORECA (hospitality industry), resulted in a fall in the volumes which impacted gross margins.

The share of milk products for Q1 FY21 was 74% of total revenue, while that of fresh milk was 10% and the same for skimmed milk powder was 14%. The result was announced after market hours yesterday, 7 September 2020.

Parag Milk Foods is engaged in manufacturing and processing of milk and milk products. The company offers a range of products, which include cheese, ghee, whey proteins, paneer, curd, yoghurt, milk products, liquid milk, milk-based beverages and milk powders.

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