Parag Milk Foods surges 8% on strong Q1 results

The stock surged 8% to Rs 344 on the BSE in intra-day trade after the company reported 169% year on year growth in consolidated net profit at Rs 283 million in June quarter.

Parag Milk Foods has surged 8% to Rs 344 on the BSE in intra-day trade after the company reported 169% year on year (yoy) growth in consolidated net profit at Rs 283 million in June quarter (Q1FY19), on healthy revenue growth. It had profit of Rs 105 million in the same quarter last year.

The consolidated revenue from operations during the quarter increased 33% yoy at Rs 5.49 billion as compared to Rs 4.13 billion in year ago quarter. Growth is driven by an increase in revenue from milk products of 41% yoy which is led by growth in key product categories.

The EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 400 bps at 10.9% for Q1FY19 due to operating leverage and higher capacity utilizations.

At 10:28 am; the stock was trading 5% higher at Rs 334 on the BSE. A combined 2.06 million equity shares changed hands on the counter on the BSE and NSE so far.