Dairy industry revenue likely to witness 12-14% growth in FY23: Report

The strong revival of the hotels, restaurants and catering (HoReCa) segment and the increase in retail prices are likely to help the dairy industry achieve 12-14 per cent revenue growth this fiscal, according to a report.

Indian dairy companies are estimated to achieve revenue growth of 12-14 per cent in FY23 on a year-on-year basis, backed by a strong revival in demand, especially the HoReCa segment and an increase in retail prices, Icra said in a report on Thursday.

However, the operating profit margins are expected to contract by 120-160 bps on a year-on-year basis as the retail price hikes are expected to provide only partial support to the input cost pressures, it added.

Icra expects the industry to maintain a stable credit profile, supported by a favourable demand outlook and moderate debt levels.

Milk production yields in the first half (H1) of FY23 were hampered by the prevalence of Lumpy Skin Disease (LSD), notably among cows in the northern states.

Although a successful