Prabhat Dairy (Prabhat) reported 18.8% sales growth YoY to | 385.6 crore, below our estimate of | 415.7 crore. However, gross margin witnessed an expansion of 180 bps due to increase in contribution of value added products & benign milk procurement prices. Procurement prices softened from | 27.5/litre in Q1FY18 to | 25.5 per litre. However, they remain flat on a YoY basis Despite the impressive expansion in gross margins, operating margins contracted 30 bps to 8.2% primarily due to higher...