I think more than the company’s inability to pass on rise in milk prices, it is the huge volatility and company posting an operating loss is what has spooked market the most. Given no other dairy company has been hit this hard. Also the sudden QoQ increase in sale of Skimmed milk powder which impacted gross margins also does not augur well. Moreover the management commentary in the concall left much to be desired so far that an investor vented his frustration on company’s reporting standard towards the fag end of the call.
Company coming out with a recent IPO should have been more forthcoming on all pending issues and contingent liabilities. All the company mentioned in the AR 2016 was these
and Sales Tax disputes. But out of the blue company was hit by 164.94 Million in VAT from past years.
This reflects badly on Corporate Governance front.