Parle Agro's Revenue Takes a Dip Amid Tax Policy Changes

Parle Agro faced a 12.3% revenue decline in FY24 due to tax policy changes, significantly affecting profit margins. The company invested heavily in its dairy category to counter these challenges, particularly impacting its Appy Fizz brand. Revenue from domestic sales stood at Rs 3,061.10 crore.

Parle Agro, renowned for beverage brands like Frooti and Appy Fizz, recorded a notable 12.3% decline in revenue to Rs 3,126.06 crore in FY24. This downturn is attributed to significant tax policy shifts impacting the Indian beverage market.

The company's profit plummeted by 89.1% to Rs 17.29 crore, as revealed by financial data. A fourfold GST increase from 12% to 40% on Appy Fizz was a major challenge, prompting pricing adjustments and a focus on serving sizes, according to Nadia Chauhan, Joint Managing Director.

Parle Agro responded with over Rs 600 crore investment in its dairy segment, aiming to offset the volatility of seasonal beverages. Despite the fiscal hurdles, a promising growth of 30-40% for FY 2024-25 is being observed, as the company anticipates a resurgence of Appy Fizz's benchmark performance.

(With inputs from agencies.)