Dodla Dairy (DODLA) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue from operations rose 10.45% to ₹15,904.75 million; PAT increased 25.88% to ₹570.81 million.

• Growth reflected higher milk procurement, milk and curd volumes, distribution reach, product expansion and overseas growth.

• Management remained focused on expanding the value chain, adding processing capacity and building domestic and overseas markets.

Financial highlights

• Consolidated total income was ₹15,970.13 million, up 10% YoY; revenue from operations was ₹15,904.75 million versus ₹14,400.44 million.

• Consolidated EBITDA was ₹1,113.64 million, up 28.70% CAGR from FY14; profit before tax was ₹807.72 million and PAT ₹570.81 million.

• Gross profit increased 17% YoY to ₹3,587.71 million; PAT rose 25% YoY from ₹453.45 million.

• Standalone revenue from operations grew 9% to ₹15,372.67 million; standalone PAT increased 10% to ₹505.65 million.

Outlook and guidance

• Management expressed confidence in sustaining performance and strengthening its position in dairy, while remaining on track toward long-term goals.

• The 0.2 MLPD Rajahmundry plant was under fast-track construction, with operations expected to begin in FY19.

• Management cited growth opportunities from rising dairy consumption, urbanisation and expansion of value-added dairy foods in India.