Parag Milk is higher in trade despite reporting a weak set in Q4FY21. Lower revenue has led to a sharp 55 percent fall in the EBITDA. The company has also reported a loss versus a profit year-on-year (YoY) and a decline in the margins.

Devendra Shah, Chairman of the company said that the milk procurement price has reduced which may lead to improvement in margins.

“Milk procurement prices have reduced by Rs 7-8 per litre and selling prices still remain the same. So, there will be gain on the margin front,” he said in an interview to CNBC-TV18.

The company is expecting 18-20 percent growth in the value-added products which contributes to 75 percent of the total business, Shah said.

He also said that the company will be able to do revenue of around Rs 3,200-3,500 crore by FY24-25. He also expects margins to inch higher to 10 percent with the rise in revenue.

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(Edited by : Abhishek Jha)