India Dairy - Steep Inflation In Milk Prices Continues: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Wholesale milk prices pan India continue to increase both month-on-month and YoY. Dairy companies have also raised milk selling prices by 8-10% in the past ten months due to sustained rise in milk procurement prices. While we note the global skim milk powder prices are down YoY, weak flush season as well as inflation in cattle feed prices are chief reasons for the higher milk prices. We continue to factor contraction in dairy companies’ Ebitda margin by 50-100 basis points in H2 FY23E. We believe dairy companies need to:raise prices again in H2 FY23, andfocus on increasing the share of Indian value-added products to protect their (the companies’) profitability. However, with higher inflation and likely better volumes (higher sales to hotel-restaurant-face), revenue growth is likely to remain strong..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Dairy - Steep Inflation In Milk Prices Continues: ICICI Securities

Wholesale milk prices pan India continue to increase both month-on-month and YoY.

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