Ahmedabad: Tasty Dairy Specialities Ltd, one of the leading producers of dairy and milk products, has delivered strong financial performance for the first half of fiscal year 2020. The Company’s Net profit for the H1FY20 period ended on 30 September 2019 saw a jump of 19.19% to Rs3.54Cr as compared to Rs. 2.97 crore posted in the same period of last fiscal. Despite challenging environment the company’s turnover increased from Rs 173.78 Crore to Rs 199.14 Crores, registering a growth of 14.59%. This was led by spurt in demand in fast growing value added segments, strategic changes in our product mix and new customer acquisitions.
The Company’s Net profit for the H1FY20 period ended on 30 September 2019 grew 19.19% to Rs3.54Cr. as compared to Rs. 2.97 crore posted in the same period of last financial year. The turnover of the company increased from Rs 173.78Crore to Rs 199.14 Crores, registering a growth of 14.59%.
In term of operating performance 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 led by slowing economic activity. Having over two and half decades of expertise and experience, we are able to maintain a healthy growth as a result of our constant efforts to de-risk the business.
Today our business is largely insulated from the weakness in the economic environment. 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 butter milk and paneer than liquid milk helping in sustaining demand.
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. 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”
Among other notable development the company is upgrading its facilities with latest technology for enhancing energy efficiency and reducing cost. It is also in the process of increasing milk processing capacity to five lakh litres of milk per day by adding many new products and focusing on fastest growing categories like Flavoured milk, Butter, Yogurt and Lassi. The Company with the help of Dutch Technology is planning to start a first Flagship Store of Artesian Ice Creams in NCR and also working on strategies to enter Global markets and looking into areas of non-bovine milk,” said Mr Mehra
Accordingly the company is 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.
Tasty Dairy is listed on BSE SME since February 2018. The company will be eligible to migrate to main board by early next year. The management and the team is making necessary efforts and expecting to get Tasty Dairy migrated on main board of BSE possibly by next year in March 2020.