Dodla Dairy Q1 FY 24 concall highlights –
Revenues-823 vs 717 cr
Gross Profit-195 vs 166 cr (@ 23.7 vs 23.3 pc)
EBITDA-60 vs 45 cr ( @ 7.3 vs 6.3 pc )
PAT-35 vs 25 cr ( @ 4.2 vs 3.5 pc)
Sale of value added products (VAP) @ 258 cr, up 13 pc YoY. VAP sales now at 32 pc of total
LY, sales from VAP was 27 pc. VAP sales peak in Q1
Industry benefiting from upcoming flush season. Likely to peak in Sep-Oct
Avg milk production in Q1-15.9 lakh Lit/day, up 7.5 pc
Avg milk sales in Q1-11.1 lakh Lit/day, up 6.2 pc
Avg curd sales in Q1-439 Tons/day, up 3.1 pc
Current number of Dodla retail parlours – 596
87 pc of milk directly produced from farmers
Company has – 123 chilling centers, 15 processing plants, 01 Feed plant ( through its subsidiary – Orgafeed )
Company has global presence in – Uganda, Kenya
Company sells in 13 states in India
There were price cuts of 4-5 pc blended for cow + buffalo milk in Q1. However, company refrained from procuring at lowest possible prices so as to not hurt farmers and for better long term sustainability of the business – a great step – IMHO
Due to upcoming flush season, GMs may go up a little more in Q2
Company’s working capital cycle is extremely healthy vs peers. Company maintains strict discipline here, even at the cost of compromising on some additional business
Company is able to hold onto Mkt share in Karnataka despite aggression from Nandini. Dodla pays same to farmer as Nandini (despite govt giving subsidies to farmer to sell to Nandini) but sells at slightly higher price due better product Quality and better internal efficiencies
Avg procurement/realisation prices for milk for Q1 at – Rs 39.6/Rs 55.6
In Africa, Q1 revenues were 60 cr and EBITDA was 14 pc (very high margins here)
Orgafeed capacity expanded, to go live in August
Srikrishna Milks (subsidiary)-did EBITDA of 5 cr @ 8.7 pc margins in Q1
Aim to increase share of VAP by 1-1.5 pc / yr
VAP sales breakup for Q1 –
Curd- 187 cr
Ghee Butter- 9 cr
Ice cream- 13 cr
Paneer+Sweets- 14 cr
Lassi- 6 cr
Buttermilk- 10 cr
Confident of maintaining Q1 levels of EBITDA margins in FY 24. May improve a little due flush season
Aim to grow the revenue by 15 pc in FY 24
Differential between avg selling price/ lit between Nandini vs Dodla is Rs 8-9 in Dodla’s favour !!!
Current Cash balance at – 467 cr at consolidated level
India capacity utilisation at 65-66 pc currently
Disc : holding
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