Dodla Dairy (DODLA) Q4 16/17 earnings summary

Executive summary

• FY17 standalone revenue from operations rose 19.41% to ₹1,411.46 crore; PAT increased 25% to ₹44.39 crore.

• Growth was supported by higher milk and value-added product volumes, wider distribution, and commissioning of the Hyderabad plant.

• Expansion priorities include scaling plant capacity, adding Rajahmundry capacity, launching ice cream, and growing overseas operations.

Financial highlights

• Standalone total income was ₹1,446.21 crore vs ₹1,207.35 crore; EBITDA ₹92.88 crore vs ₹100.77 crore; PBT ₹65.57 crore vs ₹74.41 crore.

• Standalone PAT was ₹44.39 crore vs ₹35.57 crore; EPS ₹135.56 vs ₹108.63.

• Consolidated revenue from operations was ₹1,441.52 crore, up 20%; PAT was ₹43.85 crore, up 22%.

• Consolidated total income was ₹1,446.21 crore vs ₹1,207.35 crore; EBITDA ₹90.54 crore vs ₹100.01 crore; PBT ₹65.94 crore vs ₹74.06 crore.

• Standalone gross margin was ₹296.58 crore; consolidated gross margin ₹308.06 crore. Consolidated EBITDA was ₹92.87 crore in the KPI table.

Outlook and guidance

• Hyderabad plant capacity was 1.2 lakh litres/day; management expected capacity and utilization to scale in coming months.

• Rajahmundry plant planned at 1 lakh litres/day initially, scalable to 2 lakh; construction expected to begin Q1 FY18 and completion targeted by end-2018.

• Hyderabad ice cream trial production was underway; launch was expected in Q3 FY18.

• A ₹321 crore ($50 million) investment by TPG Growth-managed Rise Fund was announced; planned growth funding includes equity or debt for organic and inorganic expansion.

• Management planned to pursue further overseas acquisitions and established a Kenya subsidiary in May 2017.