Mumbai: The recent hike in retail milk price by Rs 2 per litre will limit the slide in the profitability of the organised dairy sector to 50 basis points (bps) on-year this fiscal, despite a higher than anticipated rise in procurement prices, and transport and packaging costs, CRISIL Ratings said in a report on Tuesday.
Despite lower profitability, comfortable balance sheets and better working capital management will keep the credit profiles of players stable, it said.
