DODLA DAIRY –
Q3 FY 24 results and concall highlights –
Revenues – 746 vs 675 cr ( up 12 pc )
Gross profits – 224 vs 171 ( margins @ 30 vs 25 pc )
EBITDA – 82 vs 53 cr ( margins @ 11 vs 8 pc )
PAT – 41 vs 35 cr ( margins @ 5.5 vs 5.2 pc )
Avg daily milk production @ 17.5 lakh liter per day ( LLPD ), up 36 pc YoY !!!
Revenues from value added products @ 186 cr, up 22 pc in Q3 – a huge positive and a key matrix to track. For 9M FY 24, sale from VAPs now at 28 pc of company sales
Curd sales grew by 12 pc YoY @ 132 cr
( included in VAP sales )
Company has expanded its cattle feed capacity by 6 times from 80 MTPD to 480 MTPD. Went live in Jan ( done via its subsidiary – Orgafeed )
Also commissioned a new Dairy plant in Kenya in Q2 FY 24 with a capacity of 1 lakh LPD
Intend to set up a Greenfield dairy plant in Maharashtra. Details shall be shared when the plan is finalised. May end up spending 150-200 cr of cash for the same. Company has > 200 cr of cash on books
Intend to double Orgafeed’s revenues to 200 cr by end of FY 25
The procurement prices in Q4 are holding up at similar levels as Q3 ( usually they are higher vs Q3 )
In Q4, the sales volumes are gradually picking up vs Q3
Company is procuring far higher Qty of milk/day vs its daily milk sales. This helps the company to convert excess milk to Skimmed Milk powder, Ghee and Butter. Earlier, company had to resort to being SMP and butter from third parties to sell it in the Mkt. This should further aid the margins
Confident of achieving 15 pc topline growth for FY 25 as clocking additional 100 cr revenues from animal feed and 100 cr from Kenya is a high probability event
Company aims to maintain advertisement spends at 0.5-0.7 pc of sales
Both Butter and SMP have a shelf live of 18 months under storage conditions. Therefore, its not risky to hold additional inventory of these items
Disc: holding, biased, not SEBI registered
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