Kwality's net profit up 18% at Rs 194 cr in FY'17

Dairy firm Kwality Ltd today reported an 18 per cent increase in consolidated net profit at Rs 194.1 crore for the last fiscal.
Its net profit stood at Rs 164 crore in the previous fiscal, the company said in a statement.
Net sales rose by 8 per cent to Rs 6,871.2 crore during the 2016-17 fiscal from Rs 6,348 crore in the previous year.
Commenting on the company's results, Kwality Ltd's MD Sanjay Dhingra said, "Our business is evolving rapidly towards B2C and the outstanding results for the year are an outcome of seamless 360-degree execution of our strategies."
The company believes that favourable demographics such as rising disposable income and changing consumer preferences, urbanisation and technological advancements would change the entire landscape of dairy industry, he said.

This would create significant growth opportunities for the organised sector.
"Additionally, GST roll-out would significantly benefit the dairy sector as majority of dairy products are in the lower bracket of 0 per cent, 5 per cent or 12 per cent. It would result in formalisation of unorganised segment, improve operational efficiencies through reduction of logistics, compliance, and inventory management costs," Dhingra said.
The company has milk processing capacity of 4.3 million litres per day through its six plants in North India. It sells milk and other dairy products to retail and institutional customers through its wide distribution network.