Umang Diaries

Umang Dairies is a JK group of company where Bengal & Assam Co has a stake of 45 % and total promoter holding of JK group is 74%. It sells dairy products under the brand name of White Magik, Dairy Top and Umang Ghee. The company also makes products for private labels and is managing a facility to process and pack liquid milk in poly-pouches for Mother Dairy.

The company had a bad Q2FY17 where increased inventory at Rs16.55 crore v/s Rs.4 crore (YoY) seriously dented the bottomline, despite a 8% increase in net sales at Rs.41 crore. Consequently EBITDA was down from Rs.3.32 crore to Rs.88 lakh. The company provided only Rs.4 lakh for tax v/s Rs.82 lakh and that probably helped the company stay in the black. Umang ended the quarter with a net profit of a mere Rs.3 lakh v/s Rs.1.5 crore. Its H1FY17 net profit stands at Rs.1.5 crore v/s Rs.7.5 crore posted for FY16, indicating that current fiscal will be a tough one for the company.