Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q3 FY2022 Earnings Presentation
34 slides from Dodla Dairy's earnings presentation, Jan 20, 2022
Slide 1: Exchange filing cover letter
DODLA DAIRY LIMITED Corporate Office : # 8-2-293/82/A, Plot No. 270-Q, Road No. 10C, Jubilee Hills, Hyderabad - 500033. DODLA DATRY Ph : 040-4546 7777 Fax : 040-4546 7788 Date: 20 January 2022 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited National St
Slide 2: Dodla Dairy Investor Presentation January 2022
DODLA DAIRY INVESTOR PRESENTATION JANUARY 2022 Q3’22 CLICK TO EDIT MASTER SUBTITLE STYLE
Slide 3: Contents
01 04 Quarterly Highlights Company Canvas 02 05 Full Year Financials Strategic Advantages 03 About Us Contents DODLA DAIRY LIMITED
Slide 4: Quarterly Highlights
Quarterly Highlights DODLA DAIRY LIMITED 3
Slide 5: Management Commentary
Management Commentary “I am pleased with the performance of this quarter which was in line with our stated goals. We had a revenue growth of 16% Y-O-Y and our ability to make inroads and penetrate in a new geography which hitherto was untapped is a great testament to our procurement skills. We are e
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights ~12.4 LLPD 9.9 LLPD Average milk procurement Average milk sales during during Q3FY22 as compared Q3FY22 as compared to to 10.7 LLPD in Q3FY21 8.9 LLPD in Q3FY21 245.4 MTPD 24.4% Curd sales during Q3FY22 as Revenue from value added products (VAP) compared to 200.5 MTP
Slide 7: Key Ratio – Quarterly
Key Ratio – Quarterly ▪ Steady Q-o-Q and Y-o-Y OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) increase in quarterly revenue 32.1 numbers powered by increase 6,0 00 1,6 80 33 1,6 60 32 5,8 00 27.0 1,6 40 31 29.3 5,6 00 in milk volumes and healthy 1,6 20 30 5,4 00 1,6 00 29
Slide 8: Full Year Financials
Full Year Financials DODLA DAIRY LIMITED 7
Slide 9: Key Ratios – Full Year
Key Ratios – Full Year OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) ▪ Revenue impacted due to 30.5 Covid-19 lockdown, resulting 7,0 00 35 6,0 00 25.7 23.3 30 5,0 00 22.6 25 in loss of sales 4,0 00 20 3,0 00 15 2,0 00 10 15,905 16,888 21,394 19,400 3,588 4,349 4,988 5,931
Slide 10: Key Ratios – Full Year
Key Ratios – Full Year NETWORTH & ROCE CASH & CASH EQUIVALENT & ROE (in ₹ Mn) ROCE (in %) (in ₹ Mn) (ROE in %) ▪ Robust growth and margins leading to high capital efficiency, 7,0 00 30. 0 3,0 00 25. 0 25.5 6,0 00 23.3 25. 0 2,5 00 19.1 16.8 20. 0 5,0 00 18.9 17.0 20. 0 2,0 00 15.5 low debt levels an
Slide 11: About Us
About Us DODLA DAIRY LIMITED 10
Slide 12: Dodla Dairy Snapshot
Dodla Dairy 3rd Snapshot highest market presence across Founded in 1995, Dodla Dairy is an integrated dairy 12 states in India* company based in South India. Processes and sells milk and produces dairy-based value-added products (“VAPs”) 3rd + Read more largest procurement network (South India)* 14
Slide 13: Our Journey So Far
Our Journey So Far: 25+ years of dairy operations in partnership with marquee investors Badvel and Investment by ▪ Investment by ▪ IFC invested Sattenapally Black River(1) The Rise Fund ~INR1,000Mn plants (TGP) as it ▪ Listed on BSE & NSE acquired stake of Black River(1) ▪ Hyderabad plant 1997 2009
Slide 14: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain • Procurement of raw milk DAIRY FARM CHILLING CENTRES • Transportation from villages from ~1.3 lakh farmers across through 800+ primary vehicles 7,800+ villages through 7,500+ to 100+ chilling centers/plants VLCCs • Raw milk directly procured 01 from farmers 02 04 •
Slide 15: Few of Our Products
Few of Our Products SOLD IN INDIA SOLD IN AFRICA YOGHURT PASTEURIZED POUCH UHT MILK CURD Plain, Strawberry,Vanilla, Chocolate & Mango MILK Toned, Double Sachet Curd, Bucket Curd, Full cream, Standardized Milk, Toned Cup Curd Toned GHEE PANEER GHEE ICE CREAM Cow ghee, White ghee (buffalo ghee) and Va
Slide 16: Orgafeed Private Limited: Built On A Strong Foundation
Orgafeed Private Limited: Built On A Strong Foundation Orgafeed primarily engaged in farming, breeding, agriculture, horticulture and allied activities such as poultry, dairy and livestock farming. Additionally, it is also in the business of seed crushers, manufacturing ₹220MN ₹38MN Company sales in
Slide 17: Meet The Executive Team
Meet The Executive Team MR. DODLA SUNIL REDDY MR.VENKAT KRISHNA MR. ANJANEYULU GANJI Managing Director REDDY BUSIREDDY Chief Financial Officer Chief Executive Officer DODLA DAIRY LIMITED 16
Slide 18: Board of Directors
Board of Directors Mr. Dodla Mr. Raja Rathinam Sesha Reddy Independent Director Chairman & Non-Executive Director Exp: 22+ years in Dairy Exp: 40+ years in Dairy Board Member: Nelcast Limited Previously Associated: National Dairy Research Institute, Tamil Nadu Dairy Corporation Ltd. Mr. Akshay Tanna
Slide 19: Company Canvas
Company Canvas DODLA DAIRY LIMITED 18
Slide 20: Our strength to deliver competitive advantage
Our strength to deliver PROCESSING CAPACITY ▪ Best practices to maximize capacity utilization, competitive advantage operating metrics and profitability ▪ Flexible and agile with continuous improvement mindset 20.0 18.0 16.8 MILK PROCUREMENT ▪ All dairy processors have access to the same 13.4 13.0 r
Slide 21: Our Value-added Product (VAP) Investments
Our Value-added Product (VAP) Investments VAP Sales (in ₹ Mn) The company already has a strong distribution network in southern states for milk as well as value added products through which it can roll out existing and upcoming products 3,455 3,882 4,890 4,324 FY18 FY19 FY20 FY21 STRONG VAP PORTFOLI
Slide 22: Our Overseas Presence
Our Overseas Presence Dodla operates in Kenya and Uganda in Africa through its subsidiaries Lakeside Dairy Limited & Dodla Dairy Kenya Limited. Our African product portfolio is marketed under the “Dairy Top” and “Dodla +” brands and includes Milk, yogurt with different flavours, ghee, paneer, cheese
Slide 23: Strategic Advantages
Strategic Advantages DODLA DAIRY LIMITED 22
Slide 24: Key Strengths
Key Strengths 3rd Global Presence: Uganda Kenya largest player in terms of milk procurement Higher B2C Sales through An Extensive Product (in South India)* Strong Portfolio (Milk Based Branding Value-Added Products) 1 12 Feed Plant states engaged in our strong distribution network 14 Processing Plan
Slide 25: Stringent Quality Control Procedures
Stringent Quality Control Procedures Well Defined Quality and Food Safety Procedures at Various Stages from Procurement to Distribution PROCUREMENT STAGE PROCESSINGS STAGE ▪ VLCCs equipped with GPRS enabled ▪ At chilling centers and processing plants, electronic milk analyzers which test for the raw
Slide 26: Focused Engagement and Long-Term Relationship with Dairy Farmers
Focused Engagement and Long-Term Relationship with Dairy Farmers REGULAR DIRECT TRANSPARENCY IN SUPPLY CATTLE FEED PAYMENT PROCUREMENT ▪ Incorporated Orgafeed Private ▪ Money paid directly to farmers ▪ Company has VLCCs equipped Limited to help provide cattle in their bank accounts once with GPRS en
Slide 27: Investment Rationale
Investment Rationale INTEGRATED AUTOMATED BACKWARD PROVEN ROBUST SUPPLY CHAIN PLANTS INTEGRATED TRACK RECORD BALANCE SHEET Strong Direct Fully automated plants Presence in cattle Proven track record of Strong cashflows led to procurement model, leading to improved feed business through successfully
Slide 28: Dodla's ESG Commitment
Dodla’s ESG Commitment ENVIRONMENT SOCIAL GOVERNANCE ▪ We are dedicated to producing dairy ▪ To ensure a sustainable future, products in a manner that is humane we are focused on the development of ▪ We have established a diverse toward people, animals, and the healthy business model and products go
Slide 29: Capital Market Information
Capital Market Information 43,000+ Total Shareholders (% of Total Few of our Key Investors as on 31st December 2021 Equity) 16% TPG 9.80 Non Institutional SBI MF 7.37 10% Mutual Funds International Finance Corporation 4.46 Ashoka India Opportunities Fund 2.70 Flls. & Foreign Companies 63% 11% Aditya
Slide 30: Contact Us
Contact Us CHIEF FINANCIAL OFFICER Ganji Anjaneyulu investorqueries@dodladairy.com T: +91 40 4546 7777 CHRISTENSEN ADVISORY Kanav Khanna Kkhanna@christensenir.com T: +91 9910036240 Vikash Verma Vverma@christensenir.com T: +91 9664009029 Diwakar Pingle dpingle@christensenir.com T: +91 9833904971 CORP
Slide 31: Appendix
Appendix DODLA DAIRY LIMITED 30
Slide 32: Balance Sheet Summary (Full Year)
Balance Sheet Summary (Full Year) Particulars FY18 FY19 FY20 FY21 ▪ Company is steadily expanding ASSETS its capabilities and capacities Non-current Assets 3,745 5,374 5,697 5,703 Current Assets 2,263 2,061 2,229 4,019 which is reflected in our TOTAL ASSETS 6,008 7,435 7,926 9,722 growth of Non-curr
Slide 33: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dodla Dairy Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 34: Glossary
Glossary LLPD: Lakhs Liter per day LPA: Liters Per Annum MTPD: Metric Tonnage Per day MT: Metric Ton UHT milk: Ultrahigh Temperature Processed Milk VAP: Value-added Product VLCC: Village Level Collection Center FII: Foreign Institutional Investor DRP: Dodla Retail Parlours DODLA DAIRY LIMITED 33