Ice cream business could be in Rs 100 crore category in four to five years, said Vivek Nirmal, Joint Managing Director, Prabhat Dairy.

"Ice cream is a small segment of the business and is not more than Rs 10 crore of the overall revenues currently. It will continue to be in the test launch phase in FY19 as well. However, it could be in Rs 100 crore category over the next 4-5 years once it goes statewide," he said.

Prabhat Dairy posted a good set of Q4 results. The earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by nearly 35% and there was significant improvement on the margin front.

The house has a revenue target of Rs 2,000 crore for FY20.

He said post-2020, the company see a lot of distribution efficiencies and sales efficiencies coming in, and expect to report double-digit margins.

The company is largely focused in Maharashtra and cover 40,000 outlets in the state, said Nirmal. The milk procurement prices have remained stable around Rs 23 currently, he added.

He also stated that promoters have no intention of selling their stake and would in fact look at upping these stake at the right price.

First Published:May 21, 2018 4:02 PM IST