FNB News - Kwality reports net sales of Rs 1441.22 crore, up by 12.06% for Q3FY16

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DAIRY PRODUCTS

Kwality reports net sales of Rs 1441.22 crore, up by 12.06% for Q3FY16

Wednesday, 27 January, 2016, 08 : 00 AM [IST]

Our Bureau, New Delhi

Kwality Ltd, a dairy foods company, reported Net Sales of Rs 1441.22 crore up by 12.06% for Q3FY16 as against Rs 1286.11 crore in the corresponding quarter of last year; Net Profit before Tax during the same period stood at Rs 52.92 crore up by 19.70% as against Rs 44.21 crore for the quarter ended December 31, 2014. The EBIDTA at Rs 97.44 crore is up by 14.19% as against Rs 85.33 crore in the corresponding quarter of last year.

For nine months ended December 31, 2015, the company reported Net Sales of Rs 4285.09 crore up by 9.62 % as against Rs 3909.21 crore in the corresponding nine months period of last year; Net Profit before Tax during the same period stood at Rs 151.22 crore up by 19.36 % at as against Rs 126.69 crore for corresponding nine months period of last year. The EBIDTA at Rs 284.93 crore is up by 18.03% as against Rs 241.41 crore in the corresponding period of last year.

Commenting on the company’s results, Sanjay Dhingra, MD, Kwality Ltd, said, “We have recorded another quarter of good growth, which is in line with our expectations. We can attribute this growth to our focus towards strengthening the retail segment, which has helped us in registering these strong numbers. With the signing of Akshay Kumar as our brand ambassador and extension of our Palwal plant, we expect the momentum to continue and grow in the coming quarters.

Operating Highlights
Update on Board: To follow the good corporate governance practices in its full spirit, Sanjay Dhingra decided to step down from the post of chairman of the company and the board has appointed Dr R S Khanna (non-executive independent director) as chairman of the company. The board has also appointed dairy industry veteran Dr Satyendra Kumar Bhalla as whole time director (executive and non-independent) of the company with effect from October 08, 2015, for a period of five years.

Brand Ambassador: Kwality Ltd has signed Bollywood actor Akshay Kumar as the brand ambassador for the company and its entire range of dairy products. He comes on board for a period of two years and will endorse all the products of the company.

New Facilities at Location: The setting up of new facilities at Palwal plant location is going as per schedule. The new plant will have a capacity to manufacture value-added products like flavoured milk, UHT products, cheese in variants, table butter and so on.