PARAG FOODS LTD CMP: 316.70 AUG 13th, 2018 Result Update (CONSOLIDATED BASIS): Q1 FY19 Overweight ISIN: INE883N01014 Index Details SYNOPSIS Stock Data Parag Milk Foods Limited, established in 1992, is Sector Packaged Foods the largest private FMCG Company with a BSE Code 539889 pan presence. Face Value 10.00 Consolidated revenue for the 1st quarter rose by 52wk. High / Low (Rs.) 414.95/223.00 33.07% and stood at Rs. 5494.24 mn as against Rs. Volume (2wk. Avg.) 147000 4128.75 mn in the corresponding period of the Market Cap (Rs. in mn.) 26567.33 previous year. During Q1 FY19, consolidated EBIDTA registered Annual Estimated Results(A*: Actual / E*: Estimated) at Rs. 615.23 mn as compared to Rs. 309.28 in Q1 Years(Rs in mn) FY18A FY19E FY20E FY18, up by 98.92%. Net Sales 19545.06 22867.72 26297.88 Consolidated PBT stood at Rs. 377.10 mn in the EBITDA 2052.86 2418.76 2781.58 current quarter of FY19 from Rs. 114.53 mn in Q1 Net Profit 870.56 1089.15 1309.89 FY18. EPS 10.38 12.98 15.61 Consolidated net profit rose by 168.56% and stood P/E 30.52 24.39 20.28 at Rs. 282.69 mn in the current quarter as against Rs. 105.26 mn in the corresponding period of the Shareholding Pattern (%) previous year. EPS of the company stood at Rs. 3.37 a share As on June 2018 As on Mar 2018 during the quarter.

Promoter 45.96 48.71 The Company launched “Avvatar Advance Muscle Gainer” product specially designed to support lean Public 53.77 51.02 muscle gain with controlled fat levels. Parag Milk Foods Ltd launched “Gowardhan Others 0.27 0.27 Mishti Doi” under the Gowardhan Brand.

1 Year Comparative Graph The company has completed all regulatory requirements and would soon commence the supply of Fresh Curd to the nearby markets of Delhi-NCR. The company also plans to refurbish the new facility with additional amenities by installing processing units for pouch milk, flavoured milk, pouch milk, cup curd, misthi doi as well as expand the existing yoghurt facility. Net Sales and Operating Profit of the company is expected to grow at a CAGR of 12% and 29% over 2017 to 2020E, respectively. PARAG MILK FOODS LTD S&P BSE SENSEX

PEER GROUPS CMP MARKET CAP EPS (TTM) P/E (X) (TTM) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) Parag Milk Foods Ltd 316.70 26567.33 12.49 25.35 3.71 7.5 Prabhat Dairy Ltd 157.90 15423.10 4.84 32.62 32.62 0.00 Kwality Ltd 19.30 4658.10 2.95 6.54 0.42 10.00

Document code: FOTL_130820183_1 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved QUARTERLY HIGHLIGHTS (CONSOLIDATED BASIS)

Results updates- Q1 FY19,

(Rs in millions) June-18 June-17 % Change

Revenue 5494.24 4128.75 33.07%

Net Profit 282.69 105.26 168.56%

EPS 3.37 1.25 169.29%

PBIDT 615.23 309.28 98.92%

Consolidated revenue for the 1st quarter rose by 33.07% and stood at Rs. 5494.24 mn as against Rs. 4128.75 mn in the corresponding period of the previous year. During Q1 FY19, consolidated EBIDTA registered at Rs. 615.23 mn as compared to Rs. 309.28 mn in the corresponding previous year quarter. Consolidated net profit rose by 168.56% and stood at Rs. 282.69 mn in the current quarter as against net loss of Rs. 105.26 mn in the corresponding period of the previous year. EPS of the company stood at Rs. 3.37 a share during the quarter as compared to Rs. 1.25 per share for Q1 FY18.

Break up of Expenditure

Value in Rs. Million Break up of Expenditure % Q1 FY19 Q1 FY18 Change

Cost of Materials 3354.84 3277.96 2% Consumed

Purchase of Stock in 64.54 10.84 495% Trade

Employee Benefit 204.23 161.03 27% Expenses Depreciation & Amortization 135.50 115.62 17% Expenses

Other Expenses 866.01 753.10 15%

Document code: FOTL_130820183_1 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved UPDATE ON PRODUCT LAUNCH:

Avvatar Advance Muscle Gainer:

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