Milk Mantra, a Bhubaneswar-based dairy startup, rebounded from a INR 12.3 crore loss in FY23 to a INR 9.8 crore profit in FY24. Revenue rose by 1.3% to INR 276.4 crore, led by gains in pasteurised milk and curd. The company reduced expenses by 7%, demonstrating strong cost control and effective management despite market challenges.
Milk Mantra, a Bhubaneswar-based dairy tech startup founded in 2009 by Srikumar Misra and Rashima Misra, has made a significant impact in the dairy industry since its inception. Launched in 2012, the company offers a range of products under its brands Milky Moo and Moo Shake, including packaged milk, curd, paneer, lassi, mishti dahi, and flavoured milkshakes. After facing financial difficulties and recording a net loss of INR 12.3 crore in FY23, Milk Mantra has made a strong comeback in FY24. The company posted a net profit of INR 9.8 crore in FY24, a remarkable turnaround attributed to effective cost control and strategic management of expenses.
Revenue Performance
Despite the challenging market conditions, Milk Mantra’s revenue growth remained modest. The company’s operating revenue increased by only 1.3% year-on-year (YoY) to INR 276.4 crore in FY24. The growth was primarily driven by the pasteurised milk and curd categories, which saw positive trends, while other product categories faced declines.
Detailed Revenue Breakdown:
| Product Category | FY23 Revenue (INR Cr) | FY24 Revenue (INR Cr) | YoY Growth (%) |
| Pasteurised Milk | 162.6 | 167.4 | 3.0 |
| Curd | 59.8 | 65.7 | 10.0 |
| Cottage Cheese | 28.8 | 27.2 | -5.5 |
| Buttermilk and Lassi | 4.1 | 3.0 | -27.5 |
| Ghee | 0.61 | 0.26 | -57.0 |
| Traded Goods | 17.1 | 12.7 | -25.8 |
The most notable changes include a decline in revenue from ghee and milk powder, with the latter potentially being discontinued. Revenue from traded goods, including cattle feeds and breakfast items, also decreased.
Expense Analysis
Milk Mantra successfully reduced its total expenses by over 7% YoY, from INR 289.5 crore in FY23 to INR 269.1 crore in FY24. Key cost reductions were achieved in materials procurement and packaging.
Detailed Expense Breakdown:
| Expense Category | FY23 Expense (INR Cr) | FY24 Expense (INR Cr) | YoY Change (%) |
| Cost of Materials | 207.4 | 192.8 | -7.1 |
| Cost of Packaging | 8.0 | 7.6 | -5.1 |
| Stock-in-Trade | 13.3 | 11.5 | -13.5 |
| Employee Benefits | 18.6 | 18.9 | 1.6 |
| Freight and Forwarding | 14.9 | 13.4 | -10.1 |
The reduction in the cost of materials consumed and packaging materials significantly contributed to the profitability. The decline in freight and forwarding charges also played a role in reducing overall expenses.
Milk Mantra’s recovery to profitability in FY24, despite a challenging environment, demonstrates the company’s ability to adapt and manage its resources efficiently. By focusing on cost control and strategic revenue generation, Milk Mantra has positioned itself for continued success in the competitive dairy market. The company’s commitment to optimising operational costs while striving for revenue growth will be crucial in sustaining this positive trajectory.
