Prabhat Dairy Q1 profit up 91% at Rs 11 cr

Prabhat Dairy has posted 91 per cent rise in consolidated net profit at Rs 11.1 crore for the first quarter of 2018-19.

Its profit stood at Rs 5.8 crore in the year-ago period, the Maharashtra-based company said in a statement.

Consolidated revenue also rose 7 per cent to Rs 386 crore during April-June quarter of the ongoing financial year.

"Prabhat Dairy's consumer business significantly grew 28 per cent and the segment now contributes 36 per cent out of its total sales as compared to 30 per cent last year.

"This is due to the introduction of new products and increased marketing initiatives by the company," the statement said.

Retail milk sales have been one of the major factors for the increase in revenue this quarter and is expected to grow further in the coming months.

"We have consistently seen growth in our products, especially in the consumer segment during the past quarter. Our margins have improved as the milk prices have decreased, however, we have also seen a rise in the overall volumes," Prabhat Dairy MD & CEO Vivek Nirmal said.

The company would increase the number of 'Goodness Zones', its flagship outlets, which will strengthen presence in the focus markets, he added.

"Our procurement remains strong and as our retail focus is growing, we are also looking at strengthening our supply chain," said Nirmal.