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Bhubaneswar-based dairy tech startup Milk Mantra reported an over 36% fall in its profit to INR 13.6 Cr during financial year 2021-22 (FY22) from INR 21.3 Cr in FY21 due to a rise in its expenses.

The startup, which boasts to be the first venture capital (VC) backed dairy startup in the country, saw its total revenue grow 48% to INR 271 Cr during the year from INR 182 Cr in FY21. However, the rise in expenses slightly outpaced the growth in revenue. Total expenses rose over 50% to INR 256.4 Cr from INR 170.7 Cr in FY21.

Revenue Breakdown

The Eight Roads Ventures-backed startup’s revenue from operations jumped nearly 47% to INR 266.4 Cr in FY22 from INR 181.9 Cr in the previous year. The increase in operating revenue can be attributed to the expansion of the product portfolio.

As per its website, Milk Mantra sells products under two brands – Milky Moo and Moo Shake. It sells packaged milk, curd, paneer, lassi, mishti dahi, and flavoured milkshakes. 

Pasteurised milk held the lion’s share in terms of finished goods sold by the startup in FY22. It sold pasteurised milk worth INR 170.5 Cr during the year, while the number for curd and cottage cheese (paneer) stood at INR 53 Cr and INR 25 Cr, respectively. Buttermilk and lassi contributed to sales worth INR 3.1 Cr in FY22. 

The startup generated INR 3.8 Cr from other income sources in FY22 as compared with INR 1.4 Cr in the previous year. Other income usually comprises interest earned on bank deposits, security deposits, among others. 

Decoding Expenses

The startup’s expenses rose almost 50% due to its expansion initiatives in eastern India. During the year, the cost of material consumed contributed nearly 71% of the total expenses at INR 182 Cr, a 46% increase from INR 124.6 Cr in FY21. 

Milk Mantra spent INR 172.7 Cr and INR 9.2 Cr on raw materials and packaging materials, respectively. It had spent INR 28 Cr and INR 6.1 Cr on raw materials and packaging materials respectively in FY21. 

Milk Mantra’s employee benefit expenses also jumped nearly 80% to INR 18.5 Cr from INR 10.3 Cr in FY21. Employee benefit expense comprises employees salaries, gratuity, PF contribution, and other employee welfare benefits. 

Milk Mantra was founded in 2009 by Srikumar Misra and Rashima Misra, but began its operations in 2012. Currently, the startup has dairy processing plants in Gop, Konark, Hatibari, and Sambalpur in Odisha. Milk Mantra claims to source milk from over 75K dairy farmers in Odisha and neighbouring states. 

In an interview, the founders said that the startup is eyeing to triple its turnover to INR 1,000 Cr in the next five years. Milk Mantra competes with startups like Country Delight, Stellapps, Happy Milk, and dairy giants like Amul and Mother Dairy.