Dodla Dairy (DODLA) Q4 19/20 earnings summary

Executive summary

• FY20 revenue from operations reached a record ₹21,393.73m, up 26.46% YoY; EBITDA rose 12.06% to ₹1,481.99m, while PAT fell 20.84% to ₹498.71m.

• Milk procurement, liquid milk sales and VAP sales grew 9.6%, 16% and 20% YoY, respectively; installed processing capacity reached 2,063,200 LPD.

• COVID-19 lockdown disruptions affected transport and retail and reduced institutional demand; operations resumed and sales volumes were picking up after restrictions eased.

Financial highlights

• Consolidated total income was ₹21,456.49m vs ₹16,994.59m; revenue from operations was ₹21,393.73m vs ₹16,916.73m.

• Consolidated EBITDA increased 12.06% to ₹1,481.99m; PBT declined to ₹818.71m from ₹936.62m, and PAT to ₹498.71m from ₹630.01m.

• Consolidated EPS was ₹8.96 basic and diluted vs ₹11.32 and ₹11.30; finance costs rose to ₹161.39m from ₹107.68m.

• Standalone revenue from operations rose 24.36% to ₹19,876.16m, while PAT declined 45.64% to ₹284.71m.

Outlook and guidance

• Management expected operations in key southern markets to return close to pre-COVID levels; milk supply continuity and employee and associate safety remained priorities.

• Institutional sales remained pressured, particularly for frozen and chilled value-added products such as ice cream and flavoured milk; post-lockdown sales volumes were picking up.

• Growth plans emphasized capacity expansion, brand and product development, value addition, cash generation and risk reduction across India and Africa.