Parag Milk Foods announces record revenue of Rs 3,139cr in FY24

Parag Milk Foods Limited, a premier Indian dairy-based product manufacturer, revealed its audited financial results for the fiscal year ending March 31, 2024. The company achieved its highest-ever revenue, reaching INR 3,139 crore, marking an 8.5% year-over-year growth. Notably, the Profit After Tax (PAT) surged by 70% to INR 91 crore, with the company also reporting robust cash flow from operations amounting to INR 99 crore.

Parag Milk Foods Financial Performance Highlights

The fiscal year 2024 has been monumental for Parag Milk Foods, as the company not only surpassed the INR 3,000 crore revenue milestone but also recorded significant growth in profits and operational efficiency. The Gross Profit stood at INR 749 crore, with a gross margin of 23.9%, compared to INR 569 crore in the previous year. This represents a 4.2% margin expansion. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also improved, reaching INR 222 crore with a margin of 7.1%, up from 5.7% last year.

In the fourth quarter alone, the company’s operations generated INR 790 crore in revenue, with a gross profit of INR 194 crore and an EBITDA of INR 44 crore.

Parag Milk Foods achieves record-breaking revenue and profits in FY24

Strategic Business Developments

In the rapidly evolving dairy market, Parag Milk Foods has focused on expanding its gross margin profile through strategic brand positioning and premiumization of its product portfolio. The company’s flagship brands, Gowardhan and Go, continue to perform strongly, with specific growth noted in core categories such as Ghee and Cheese, which grew by 3.5% YoY.

The company has also made significant strides in new-age business avenues. The brand Avvatar has been growing at a 100% CAGR for the second consecutive year, indicating strong market share gains in the protein segment.

Expansion and Innovation of Parag Milk Foods

Looking forward, Parag Milk Foods is set to expand its international presence by incorporating a wholly-owned subsidiary in Dubai, UAE. This move aims to enhance global market reach and streamline supply chain operations.

Furthermore, the company has ventured into the traditional Indian sweets market under the brand Gowardhan, targeting an estimated market size of INR 7000-8000 crore, reflecting a strategic move towards diversification and innovation in dairy-based products.

Parag Milk Foods’ financial results reflect a robust business model capable of sustaining growth amidst market fluctuations. The company’s strategic focus on brand building, premiumization, and expansion into new markets positions it well for future growth.

The consistent investment in R&D and marketing strategies like impact campaigns significantly contribute to its market presence and customer engagement.

Parag Milk Foods Limited continues to demonstrate industry-leading growth and profitability, underpinned by strong operational performance and strategic market positioning. As it moves into FY25, the company appears well-equipped to maintain its trajectory of growth, leveraging its R&D capabilities and expanding international footprint.