Virat Crane results were declared and they are a bit subdued on the revenue growth front. This could be due to lesser MRP per packet compared to last year. The reduction in milk prices could have been passed to the customer. This also means there could have been not much volume growth.
However, as expected the raw material costs have come down and though the revenue was lower by about 10% YoY the Net Profit grew by 22% YoY.
HALFYEARLY ANALYSIS:
For such a small company, the quarterly earning may not be a right approach as the growth would be lumpy.
If we look at Half Year metrics, the Revenue growth is flat (29 crore vs 28.6 crore) so indeed there is a bit of volume growth (7-10%?) and the net profit (EPS) growth is 61%.
Other expenses are a bit higher which I think could be due to expansion activities in Karnataka (?).
Balance sheet is strong though and finance costs have dropped by a lot when compared to the balance sheet size and the company is practically a zero debt company except for working capital requirements.
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