Dodla Dairy (DODLA) Q1 24/25 earnings summary

Executive summary

• Achieved record-high consolidated revenues and profitability in Q1 FY2025, with broad-based growth across India, Africa, and value-added products (VAP) contributing 35.4% of total revenues.

• EBITDA grew 74.2% YoY to ₹1,051 Mn (11.5% margin), and PAT rose 85.9% YoY to ₹650 Mn (7.1% margin), reflecting strong margin expansion from procurement and product mix.

• Strategic focus on product mix improvement, distribution network expansion, operational efficiency, and brand building supported performance.

• Unaudited consolidated financial results for Q1 FY25 were reviewed and approved by the Board and Audit Committee, with an unmodified auditor's opinion.

• The group comprises the holding company, five subsidiaries, and one associate, with results consolidated accordingly.

Financial highlights

• Revenue from operations rose to ₹9,116 Mn in Q1 FY25, up 10.7% YoY and 15.8% sequentially.

• Gross margin improved to 29.1% from 23.7% YoY, mainly due to lower procurement costs and favorable revenue mix.

• EBITDA increased to ₹1,051 Mn (margin 11.5%), compared to ₹603 Mn in Q1 FY24.

• Net profit reached ₹650 Mn, with a margin of 7.1%, up 289 bps YoY.

• EPS for Q1 FY25 was ₹10.93, compared to ₹5.88 in Q1 FY24.

Outlook and guidance

• Expecting double-digit revenue growth and 18%-20% EBITDA and PAT growth for FY2025, with margins to remain stable.

• Africa business revenue projected to grow from ₹2,180 Mn to ₹3,600 Mn, and Orgafeed from ₹820 Mn to ₹1,600 Mn in FY2025.

• Value-added products expected to maintain a 33%-35% revenue share, with EBITDA margins of 12%-13%.

• Focus on expanding procurement network, VAP growth, brand building, and capacity utilization in new plants.

• 835,024 equity shares allotted under ESOP scheme post quarter-end, reflecting ongoing employee incentive programs.