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Parag Milk Foods gets healthier after reporting good Q2 results

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Capital Market
Last Updated : Nov 10 2016 | 12:28 PM IST

Parag Milk Foods rose 1.83% to Rs 312.30 at 12:05 IST on BSE after consolidated net profit rose 47.8% to Rs 14.33 crore on 0.7% rise in revenue from operations to Rs 472.84 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 9 November 2016.

Meanwhile, the S&P BSE Sensex was up 445.73 points, or 1.64%, to 27,698.26.

On BSE, so far 12,029 shares were traded in the counter, compared with average daily volume of 48,838 shares in the past one quarter. The stock hit a high of Rs 318.10 and a low of Rs 308.50 so far during the day. The stock hit a record high of Rs 356.70 on 13 July 2016. The stock hit a record low of Rs 202.10 on 13 July 2016. The stock outperformed the market over the past one month till 9 November 2016, rising 0.28% compared with the Sensex's 2.88% fall. The scrip however underperformed the market in past one quarter, falling 8.98% as against the Sensex's 2.96% decline.

The mid-cap company has an equity capital of Rs 84.11 crore. Face value per share is Rs 10.

Parag Milk Foods' earnings before interest, taxes, depreciation and amortization (EBITDA) margin dropped 0.84% to 8% in Q2 September 2016 from 8.8% in Q2 September 2015. Net profit margin rose 0.97% to 3% in Q2 September 2016 from 2.1% in Q2 September 2015. Net profit margin improved substantially on account of savings in finance cost of 56% in Q2 September 2016 due to partial repayment of borrowings in Q1 June 2016. Growth in revenues in Q2 September 2016 was relatively flat due to degrowth in skimmed milk powder and slowdown in rural demand. However export business witnessed good traction.

Parag Milk Foods manufactures a diverse range of products including cheese, ghee (clarified butter), fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages targeting a wide range of consumer groups through several brands.

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First Published: Nov 10 2016 | 12:08 PM IST

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