Last fiscal, some recovery in demand for value added products (VAP) in the second half helped organised-sector dairy players log a positive sales growth of 1% for the full year, despite the body blow from a nationwide lockdown and other restrictions in the first half.
This fiscal, again, intermittent lockdowns to contain the second wave of the pandemic have moderately tempered sales of VAP categories such as flavoured milk, buttermilk, lassi and ice cream in the first quarter.
A full recovery to the pre-pandemic level is, therefore, likely only next fiscal, given a continuation of VAP demand and a modest improvement in liquid milk sales.
That said, milk procurement prices and inflationary pressures are rising. How will this impact the profitability of dairy firms? How are they likely to manage working capital, especially inventories? How is credit quality expected to fare?
To discuss these aspects, CRISIL Ratings is organising a webinar on the domestic dairy sector on Tuesday, June 29, 2021, where its team will make a presentation covering:
Demand-supply dynamics and growth prospects for organised dairy players
Profitability trends
Capital spending and working capital management trend, and credit outlook
The presentation will be followed by a discussion with eminent panellists from the dairy sector, and a Q&A session with the audience.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
