Tasty Dairy Specialities Ltd, one of the leading producers of dairy and milk products, has reported a consistently good financial performance for the first half of FY2020. The Company's Net profit for the H1FY20 period ended on 30 September 2019 grew 19.19% to Rs 3.54Cr. as compared to Rs. 2.97 crore posted in the same period of last financial year. The turnover of the company increased from Rs 173.78 Crore to Rs 199.14 Crores, registering a growth of 14.59%.
During the period company's EBIDTA margin stood at 3.95% as compared to 3.81% for H1 FY19. Earnings per share stood at Rs. 1.73 per share for the period under reporting period.
Commenting on the financial performance Mr Atul Mehra, Chairman and Whole Time Director, Tasty Dairy Specialities Ltd, said, "The Company has posted a decent financial performance despite difficult business environment on account of economic slowdown. As a fast emerging company with over two and half decades of expertise and experience, we are able to maintain a healthy growth in our key performing areas.
Going forward, we expect our business to largely remain insulated from the current weakness in the economic environment, as people are unlikely to reduce consumption of milk and milk based products. Interestingly Indian consumers are eating more of cheese, ice cream, yogurt, and ethnic dairy products such as buttermilk and paneer than liquid milk in recent years. The Company is well placed to capitalize on available opportunities in our business segments to achieve a consistent growth that will help in taking our top line to Rs 500 Cr. plus by FY2021 and attain new horizons of accelerated growth."
Mr. Mehra further said, "In the longer run, we believe the dairy consumption is all set to go up significantly in India, which will ultimately benefit the company. Tasty Dairy has been successfully adapting to new changes and challenges to meet the demands of growing market.
We have upgraded our facilities with latest technology for enhancing energy efficiency and reducing cost. We are also in the process of increasing our milk processing capacity to five lakh litres of milk per day by adding many new products focusing on fastest growing categories like Flavoured milk, Butter, Ice- cream, Yogurt, Lassi, among others.
The Company is also building its retail presence across value chain and have launched exclusive company operated branded stores creating unique customer experience and to make entire range of Tasty Dairy products available under one roof. The Company has also launched several products on E-Commerce platforms to enhance revenue growth from online sales."
Moreover, Tasty Dairy is intending to launch Artisan Ice cream with the help of Dutch Technology, starting with a first flagship store in NCR. The Company is also working on plans to enter Global markets and looking into areas of non-bovine milk.
Additionally, Tasty Dairy is MOO'ving up the Dairy Skills in India. In a big and fast growing country like India, the farmers need to be skilled in a wide range of areas to run profitable and sustainable dairy farming. Hence, the Company is aggressively improving the dairy skill sets of thousands of farmers and other stakeholders in Uttar Pradesh through a self-sustaining social-business model for which the Company has set up INDUCED (Indo Dutch Centre of Excellence on Dairying), an organization born out of an MOU between Tasty Dairy Specialities Limited and PUM, Netherlands Senior Experts.
The Company is also passionately working with other key stakeholders including many International Nutrition companies and among others, to bring about a complete transformation in the way dairy farmers operate their day to day working. We are looking into the options of Milk production using block chain technology, making farmer an important part of value chain, looking at more institutional customers Improving the quality of milk and its impression in people's mind" Mr Mehra added.
Shares of Tasty Dairy Specialities Ltd was last trading in BSE at Rs.21.15 as compared to the previous close of Rs. 19.5. The total number of shares traded during the day was 75000 in over 17 trades.
The stock hit an intraday high of Rs. 21.45 and intraday low of 18.6. The net turnover during the day was Rs. 1500750.