Parag Milk Foods' profit margins boosted in Q4FY16

Parag Milk Foods (PMFL) has declared its fourth quarterly results on Friday after market hours. The company’s revenue has increased by 19.62 per cent to Rs 414 crore in Q4FY16 as compared to same period in previous financial year. Its EBITDA too has risen by 38.08 per cent to Rs 39.89 crore in Q4FY16 on a yearly basis. PMFL’s EBITDA margin has also expanded by 130 basis points to 9.64 per cent in Q4FY16 as compared to same period in previous fiscal year. The company’s net profit has remained flat at Rs 16.09 crore in Q4FY16 against Rs 16.08 crore in Q4FY15.

On the yearly front, PMFL’s consolidated top line has increased by 13.92 per cent to Rs 1645 crore in FY16 as compared to previous financial year. The company’s branded dairy products segment has grown by 30 per cent in FY16 on a yearly basis. Its EBITDA has boosted by 38.32 per cent to Rs 148 crore in FY16 on a yearly basis due to favourable raw material prices. PMFL’s EBITDA margin has expanded by 159 basis points to 9 per cent in FY16 as compared to previous financial year. The net profit of company has increased by 46.91 per cent to Rs 47 crore in FY16 on a yearly basis. Its debt stands at Rs 360 crore as of Q4FY16.

On Friday, the share price of PMFL has increased by 0.95 per cent on bourses and closed at Rs 259.4 on an intraday basis.

PMFL is engaged in manufacturing and marketing of dairy-based branded foods.The company has manufacturing facilities at Manchar in the Pune district of Maharashtra and Palamaner in the Chittoor district of Andhra Pradesh. It produces cheese and whey products only at its Manchar facility and Ultra Heat Treatment (UHT) products only at its Palamaner facility. PMFL manufactures a range of products, including cheese, ghee, fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages.