Parag Milk Foods slipped down 9% to hit an intraday high at Rs.133.45 and its 20% LC for the day is at Rs.117.20. Its 52-week low stands at Rs.83.85.
The market was unhappy with the earnings for Q4FY21 wherein it reported a 19% (YoY) and 8% (QoQ) drop in consolidated net revenue at Rs.434 crore. The company ended the quarter with a net loss of Rs.10 crore v/s net profit of Rs.10 crore in Q4FY20 and profit of Rs.11 crore in Q3FY21.
Its performance for the entire FY21 was impacted. Its business from the HORECA segment (Hotel, Restaurants and Catering Channel Partners) fell during the year due to lockdowns across the country during the year. A large part of our Liquid Milk is distributed through modern trade channel and due to pandemic situation and subsequent lockdowns, modern trade channel was highly affected as well as there has been shift in consumer buying behaviour from these outlets, leading to lower revenues. The fixed costs prevented this impact to be absorbed, leading to losses.