Devendra Shah, Chairman, Parag Milk Foods, expects Rs 160-180 crore revenue from sports segment in next three years.

"The new sports nutrition brand ‘Avvatar’ has been well received by the market and expect Rs 160-180 crore revenue from sports segments in next 3 years. The margins in this segment are good," said Shah to CNBC-TV18.

Parag Milk posted a strong set of earnings with good revenue growth and margin expansion but profit after tax (PAT) growth was limited by a high tax expense.

"It has been in an historical quarter for the company and expect this journey to continue on back of investments and expansions in place for future growth," Chairman said.

To promote the sports nutrition drink, the company would invest into social and digital media, Shah said .

The company is also planning to come out of protein powder for mass nutrition. It is pure milk protein product with a market size of around Rs 1,600-1,800 crore.

The company reported total income of plus 20.9% at Rs 517 crore in the fourth quarter versus Rs 428.3 crore for the same quarter last fiscal.

The year-on-year (YoY) EBITDA was plus 42.5% at Rs 55 crore versus Rs 38.64 crore and margin were at 10.6% compared to 9.0%.