Umang Dairies, engaged in the business of dairy products, a part of JK Organisation, for Q4FY14, posted a 60% (YoY) jump in net sales at Rs.87 crore. The company, on the operating front reported a major jump of 63% in its raw material costs and overall operating costs rise 65%. This in turn affected the EBITDA margin, which was down 440 bps. A 60% decline in tax outgo is what helped the company end the quarter with a 78% jump in net profit at Rs.4 crore.  Thus on face value, the performance, especially the spurt in net profit looks very good but unless it works on controlling operating costs, especially raw material costs, the margins could continue to remain crunched.

The company ended FY14 with a 51% drop in net profit at Rs.6 crore on a 24% rise in net sales at Rs.192 crore. Its networth as at 31^st March 2014 stands at Rs.25 crore, up from Rs.21 crore. Debt has gone up 116% at Rs.15 crore though current ratio has improved to 1.2 times.