Expect to maintain healthy growth rate for FY18: Prabhat Dairy

Prabhat Dairy reported strong revenue growth in its Q2 earnings. Margins have also expanded. Profit growth however has been capped by higher other expenses.

In an interview with CNBC-TV18, Vivek Nirmal, Joint MD of the company discussed its Q2 results.

The company is targeting higher revenues from value-added products and the consumer business and now the consumer business has been growing, he said.

They saw higher gross margin due to higher share of value added products and lower milk rates.

Around 80 percent of the company’s revenues come from the value added products where the gross margins are 7-8 percent higher.

Other expenses are higher because of manufacturing expenses of new trials, he added.

Most of the products now come under 12 percent goods and services tax (GST) rate, said Nirmal.

“We have been maintaining a consistent growth rate since last four-five years which is around 20 percent. This year also we see good growth because the monsoon has been good. We will still be able to maintain a healthy growth rate this year,” he further mentioned.

For full interview, watch accompanying video...