Dodla Dairy (DODLA) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated operating revenue rose 25.35% YoY to ₹28,120.29 million, while PAT attributable to shareholders fell to ₹1,222.84 million from ₹1,328.13 million, pressured by higher milk procurement costs.

• Average milk sales grew 14.5% YoY to 10.7 LLPD; VAP and fat-based product revenue rose 26.0% to ₹7,408 million.

Financial highlights

• Consolidated EBITDA was ₹1,913.22 million vs ₹2,107.28 million in FY22; PBT was ₹1,518.36 million vs ₹1,655.60 million.

• Gross profit increased 8.7% YoY to ₹6,711 million, but gross margin fell to 23.9% from 27.5%; EBITDA margin declined to 6.8% from 9.4%.

• Consolidated EPS was ₹20.55 basic and ₹20.39 diluted, vs ₹22.43 and ₹22.24 in FY22.

• Operating cash flow was ₹1,607.92 million vs ₹1,711.36 million; cash and cash equivalents ended FY23 at ₹750.46 million vs ₹1,098.94 million.

Outlook and guidance

• The upcoming Q2 FY24 flush season was expected to improve business opportunities; production at the Kenya acquisition was expected to begin by end-Q2 FY24.

• FY24 plans included exploring greenfield acquisitions or domestic M&A to enter new geographies; investment in VAP was targeted to support margins.

• The strategy emphasized capacity growth, overseas expansion, automation, product diversification and a research- and science-based dairy business.