Parag Milk Foods Ltd (PMFL) has reported a 8.5 per cent revenue growth in the 2023-24 fiscal at ₹3,139 crore on the back of strong brand equity and competitive market positioning.

A company statement said it earned a gross profit of ₹749 crore (with a margin of 23.9 per cent) compared with ₹569 crore (margin of 19.7 per cent). Profit after tax was ₹91 crore (₹53 crore), up 70 per cent.

EBITDA with a margin of 7.1 per cent was ₹222 crore. The company’s focus on margin expansion continues, it said. A strong performance in the ghee and protein categories primarily drove this growth.

In the fourth quarter, its revenue was ₹790 crore and its gross profit was ₹194 crore. EBITDA was ₹44 crore and profit after tax ₹10 crore. The statement said the board of directors had recommended a divided of ₹0.5 per equity share of face value of ₹10 each.

Widening reach

PMFL has expanded its presence in the sweets category under the brand name ‘Gowardhan’. The company plans to incorporate a wholly-owned subsidiary in Dubai to widen its reach and have seamless supply chain operations to cater to the global market.

Commenting on the results, Devendra Shah, Chairman, said, “Over the last few quarters, the milk procurement prices have been benign, and now we expect an upward bias. Despite tailwinds; we are geared up to improve our margin profile.”

PMFL will continue to increase its industry-leading R&D capabilities and infrastructure to drive innovation for the sake of consumers across the globe. “Our forward integration of ‘Gowardhan’ into the traditional sweets category is an initiative in this direction. The initial response of the prototype is very positive and encouraging, and we aim to target a bigger launch around the festivities,” he said.