KMG Milk Food Limited Reports Profit in H1 Amid Challenging Market Conditions

KMG Milk Food Limited , a player in the dairy industry, has released its unaudited financial results for the quarter and half-year ended September 30. The company's performance shows signs of improvement compared to the previous year, despite facing challenging market conditions.

Financial Highlights

Particulars (in ₹ lakhs)	H1 (Unaudited)	H1 (Unaudited)	FY (Audited)
Revenue from Operations	427.16	344.21	677.33
Total Income	476.66	482.47	773.33
Total Expenses	448.39	521.86	818.76
Profit/(Loss) before Tax	28.27	(39.39)	0.25
Net Profit/(Loss)	28.27	(39.39)	(45.68)

Key Takeaways

Revenue Growth: KMG Milk Food Limited reported a significant increase in revenue from operations, rising to ₹427.16 lakhs from ₹344.21 lakhs in the previous comparable period, marking a growth of approximately 24%.
Profitability Turnaround: The company has shown a remarkable turnaround in profitability. It reported a profit before tax of ₹28.27 lakhs, compared to a loss of ₹39.39 lakhs in the same period last year.
Expense Management: Total expenses decreased to ₹448.39 lakhs from ₹521.86 lakhs in the previous comparable period, indicating improved cost management.
Cash Flow Position: The company's cash and cash equivalents stood at ₹51.38 lakhs, compared to ₹143.32 lakhs at the end of the previous fiscal year.
Inventory Levels: Inventories increased to ₹95.16 lakhs from ₹79.00 lakhs at the end of the previous fiscal year.

Balance Sheet Overview

As of the reporting date, KMG Milk Food Limited's total assets stood at ₹907.37 lakhs, a slight decrease from ₹997.17 lakhs at the end of the previous fiscal year. The company's equity position improved, with the total equity deficit reducing to ₹80.03 lakhs from ₹108.30 lakhs at the end of the previous fiscal year.

Looking Ahead

The dairy industry continues to face challenges, including fluctuating input costs and market competition. KMG Milk Food Limited's ability to maintain its profitability and further strengthen its balance sheet may be crucial for its future performance.

Investors and stakeholders may want to monitor the company's ongoing strategies for sustaining revenue growth, managing expenses, and improving its overall financial health in the coming quarters.

Note: The financial results presented are unaudited and subject to limited review by the company's statutory auditors. Investors are advised to consider this information in conjunction with the full financial statements and auditor's report when making investment decisions.

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-100.00%	0.0%	0.0%	-100.00%	-100.00%	-100.00%

KMG Milk Food , a company operating in the pesticides business segment, has reported a remarkable turnaround in its financial performance for the first quarter. The company's board approved the unaudited standalone financial results for the quarter ended June 30, revealing a significant improvement in profitability and revenue.

Financial Highlights

Profit Surge: KMG Milk Food posted a profit of ₹38.56 lakhs for Q1, compared to a loss of ₹1.21 lakhs in the same quarter of the previous year, marking a substantial turnaround in the company's financial performance.
Revenue Growth: The company's revenue from operations increased to ₹305.66 lakhs, up from ₹216.87 lakhs year-over-year, representing a growth of approximately 41%.
Total Income: Total income rose to ₹329.66 lakhs in Q1, compared to ₹240.87 lakhs in the corresponding quarter of the previous year, showing an increase of about 37%.
Expenses Management: Despite the increase in revenue, the company managed to keep its expenses in check. Total expenses for the quarter were ₹291.10 lakhs, up from ₹242.08 lakhs in the same period last year.

Key Financial Metrics

Particulars (in ₹ lakhs)	Q1 Current	Q1 Previous	% Change
Revenue from Operations	305.66	216.87	+41.0%
Total Income	329.66	240.87	+36.9%
Total Expenses	291.10	242.08	+20.2%
Profit/(Loss)	38.56	(1.21)	N/A

Other Important Details

The company's paid-up equity share capital stands at ₹530.46 lakhs, consisting of 53,04,600 equity shares of ₹10 each.
The financial results were reviewed by the statutory auditors, Gauri Goyal & Associates.
KMG Milk Food operates exclusively in the pesticides business segment.

Conclusion

KMG Milk Food's Q1 results demonstrate a strong financial recovery, with substantial growth in revenue and a shift from loss to profit. The company's ability to increase revenue while managing expenses effectively has contributed to this positive outcome. Investors and stakeholders may view these results as an encouraging sign of the company's improving financial health and operational efficiency.

Note: The financial results are subject to limited review by the statutory auditors and have been prepared in accordance with Indian Accounting Standards (Ind AS) and SEBI guidelines.