In Q4 2023, Parag Milk Foods Limited reported a revenue of ₹8,009.56 million, reflecting a minor decline of 1.35% year-over-year and a sequential decrease of 1.34%. The gross profit figures also saw a notable decline, plummeting by 13.65% year-over-year and 30.05% on a quarter-over-quarter basis, resulting in a gross profit margin of 21.3%. Operating income fell drastically, down 23.60% year-over-year and a staggering 58.83% sequentially, pointing towards increased operational challenges. Management attributed these declines to market pressures and rising operational costs linked to inflation and supply chain constraints.
Net income decreased significantly during the quarter, dropping 56.10% year-over-year to ₹223.52 million, while Earnings Per Share (EPS) also fell by 56.02%. This performance raises concerns about sustainability amidst the competitive landscape of the packaged foods industry in India. Investors should keep an eye on the strategic responses from management in addressing these financial pressures and the overall market outlook.