Parag Milk Foods tanks 16% on Q3 net loss
The stock tanked 16% to Rs 223 after the company posted a consolidated net loss of Rs 38 crore in Q3
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Shares of Parag Milk Foods tanked 16% to Rs 223 on the BSE after the company reported a consolidated net loss of Rs 38 crore for the quarter ended December 2016 (Q3FY17), due to higher expenses. The company engaged in dairy product business had profit of Rs 14.50 crore in the year ago quarter.
Total income from operations during the quarter under review increased 15% at Rs 446 crore, while total expenses rose 32% at Rs 471 crore over the previous year quarter.
The company has reported EBITDA (earnings before interest, tax, depreciation and amortization) loss of Rs 14.5 crore against profit of Rs 38.3 crore.
“Increase in other expenses is mainly due to advertising spends during Q3 FY17 to create brand impact during festive season of Diwali and New Year. During Q3 FY17, milk prices increased by >20% which impacted the gross margin of the company,” Parag Milk Foods said in a release.
The company has incurred an exceptional expense of Rs 16.5 crore pertaining to prior years, as a result of sales tax investigation conducted by Maharashtra sales tax authorities.
Parag Milk Foods had mobilised about Rs 750 crore through initial public offer (IPO) during May last year. The issue was priced at Rs 215 for institutional investors and Rs 203 for retail investors.
At 10:07 am; the stock was down 12% at Rs 233 on the BSE as compared to 0.14% decline in the S&P BSE Sensex. A combined 816,550 shares changed hands on the counter on the BSE and NSE so far.
Total income from operations during the quarter under review increased 15% at Rs 446 crore, while total expenses rose 32% at Rs 471 crore over the previous year quarter.
The company has reported EBITDA (earnings before interest, tax, depreciation and amortization) loss of Rs 14.5 crore against profit of Rs 38.3 crore.
“Increase in other expenses is mainly due to advertising spends during Q3 FY17 to create brand impact during festive season of Diwali and New Year. During Q3 FY17, milk prices increased by >20% which impacted the gross margin of the company,” Parag Milk Foods said in a release.
The company has incurred an exceptional expense of Rs 16.5 crore pertaining to prior years, as a result of sales tax investigation conducted by Maharashtra sales tax authorities.
Parag Milk Foods had mobilised about Rs 750 crore through initial public offer (IPO) during May last year. The issue was priced at Rs 215 for institutional investors and Rs 203 for retail investors.
At 10:07 am; the stock was down 12% at Rs 233 on the BSE as compared to 0.14% decline in the S&P BSE Sensex. A combined 816,550 shares changed hands on the counter on the BSE and NSE so far.