Dodla dairy q3 concall highlights -
Revenues up 17 pc to 675 cr, due rise in milk prices, vol growth and higher share of value added products
Value added products sale at 153 cr. VAP share at 23 pc
Expanding in North Karnataka, Goa
Domestic business at 618 cr, up 16 pc
Intl business up 32 pc at 57 cr !!
EBITDA at 54 vs 52 cr
PAT at 35 vs 27 cr
Avg milk procurement at 12.8 vs 12.4 lakh lit/day
Procuring almost all the milk directly from farmers, saving costs
Also selling high quality feed to them, a mutually beneficial arrangement
Company has 3rd largest mkt presence across 04 states, supported by 3rd largest procurement network
Gross margin down by 400bps due higher procurement costs
YTD avg procurement rate per litre at Rs 36 vs 31.5 LY
YTD avg selling price moved up to Rs 52 vs Rs 49 LY
Company’s new Feed plant to go live in Apr 23
Company has aprox 600 cr in cash, bonds and MFs
Actively looking for acquisitions at right price
Cow:Buffalo mix at 95:05
Sales mix state wise - AP- 34 pc , Karnataka- 40 pc, Telangana- 10 pc, TN- 16 pc
Daily procurement per farmer at aprox 10 lit
Current farmer count supplying to Dodla at 1.21 lakh
20k farmers buying feed from Dodla. This no. may go up substantially once the new feed plant goes live in Apr 23
Curd is a fast growing product for the company
Planning to organically/inorganically enter Maharashtra, Orissa Mkts
Expect some price correction in milk procurement in the upcoming flush season. Not going to cut the selling prices
Historical top line growth - 10 pc volume, 5 pc price. This yr, price contribution was at 8 pc
Disc: holding, biased
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