Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q3 FY24 Earnings Presentation
39 slides from Dodla Dairy's earnings presentation, Jan 27, 2024
Slide 1: Exchange cover letter: Investor Presentation
Date: 27 January 2024 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchanges of India Limited Phiroze Jeejeebhoy Towers "Exchange Plaza", 5th Floor, Dalai Street, Fort Plot No.C/1, G Block Mumbai-400 001 Bandra-Kurla Complex Bandra (E
Slide 2: Investor Presentation January 2024 | Q3FY24
INVESTOR PRESENTATION January 2024 | Q3FY24
Slide 3: Table of Contents
Table of Contents 3 Q3 & 9MFY24 Highlights 14 Full Year Financials 18 About Us 24 Company Canvas 28 Strategic Advantages
Slide 4: Q3 & 9MFY24 Highlights
re Q3 & 9MFY24 Highlights
Slide 5: Management Commentary
Management Commentary “It gives me immense pleasure to share that Dodla Dairy was able to reap the benefits of the peak 2023-24 flush season coupled with positive festive spendings enthusiasm as anticipated. The Company continued to strengthen its procurement capabilities during the quarter achievin
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights 17.5 36.7% YoY Average milk procurement Average milk sales during Q3FY24 LLPD during Q3FY24 as compared as compared to 10.5 LLPD in to 12.8 LLPD in Q3FY23 Q3FY23 21.5% YoY Revenue from value added products (VAP) and fat & fat-based products was 10.7 at ₹1,863 Mn of t
Slide 7: Nine Months Operational Highlights
Nine Months Operational Highlights 2.2% YoY 16.8 20.3% YoY Average milk procurement Average milk sales during LLPD during 9MFY24 as 9MFY24 as compared to 10.6 compared to 14.0 LLPD in LLPD in 9MFY23 9MFY23 15.3% YoY Revenue from value added products (VAP) and fat & fat-based products was 10.9 at ₹6,
Slide 8: Quarter-wise Historical Operational Highlights
Quarter-wise Historical Operational Highlights AVERAGE MILK PROCUREMENT AVERAGE MILK SALES CURD SALES *VAP SALES (in INR Mn) and VAP (in LLPD) (in LLPD) (in MTPD) SHARE (in % of TOTAL REVENUES) 23.1% 26.1% 32.0% 26.1% 25.6% 20. 0 36.7% YoY 12. 0 500 .0 12.3% YoY 3,0 00 450 .0 18. 0 11. 0 2,5 00 400
Slide 9: Year-wise Historical Operational Highlights
Year-wise Historical Operational Highlights AVERAGE MILK PROCUREMENT AVERAGE MILK SALES CURD SALES *VAP SALES (in INR Mn) and VAP (in LLPD) (in LLPD) (in MTPD) SHARE (in % of TOTAL REVENUES) 27.0% 27.2% 25.2% 26.6% 26.8% 16. 0 12. 0 350 .0 8,0 00 14. 0 7,0 00 300 .0 10. 0 12. 0 6,0 00 250 .0 8.0 10.
Slide 10: Key Financial Metrics (Quarterly)
Key Financial Metrics (Quarterly) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS EBITDA & EBITDA MARGINS PAT & PAT MARGINS (in ₹ Mn) (in ₹ Mn) — (in %) (in ₹ Mn) (in %) (in ₹ Mn) 26.8 30.0 11.1 25.3 2,5 00 32. 0 1,1 50 8,0 00 2,3 00 27. 0 9.1 11. 0 600 5.2 5.7 5.5 7.5 7.9 5.5 950 9.0 7,5 00 2,1 00 2
Slide 11: Key Financial Metrics (Nine months results)
Key Financial Metrics (Nine months results) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS EBITDA &EBITDA MARGINS PAT & PAT MARGINS (in ₹ Mn) (in ₹ Mn) — (in %) (in ₹ Mn) — (in %) (in ₹ Mn) — (in %) 25, 000 7,5 00 24.7 26.8 9.1 12. 0 1,8 00 23, 000 27. 0 7.5 4.8 5.1 1,6 00 2,5 00 5 6,5 00 22. 0 7.0
Slide 12: Consolidated Profit & Loss Results
Consolidated Profit & Loss Results Particulars (INR in millions) Q3FY24 Q3FY23 YoY Q2FY24 QoQ 9MFY24 9MFY23 YoY FY23 Revenues 7,468 6,754 10.6% 7,678 (2.7%) 23,380 20,877 12.0% 28,120 Cost of Goods Sold 5,224 5,043 3.6% 5,619 (7.0%) 17,125 15,715 9.0% 21,409 Gross Profit 2,244 1,712 31.1% 2,059 9.0%
Slide 13: Commitment Towards Growth
Commitment Towards Growth Prudent Capex Execution Particulars Old New Status Growth Blueprint Capacity Capacity Banking on Orgafeed Commissioned in 80 MTPD 480 MTPD Economies of Scale (Cattle Feed Plant) Q2FY24 • Continue to strengthen Dodla Dairy’s integrated business Country Delight Dairy 1,00,000
Slide 14: Raising the Visibility Quotient
Raising the Visibility Quotient Television Commercials Brand Building Initiatives Aired television commercials (TVC) on the leading regional TV channels and popular digital channels for the first time capturing the festive vibes of consumers during Makar Sankranti/Pongal festival Penetrate deeper in
Slide 15: Full Year Financials
Full Year Financials
Slide 16: Financial Highlights
Financial Highlights OPERATING REVENUE GROSS PROFIT & GROSS MARGINS EBITDA &EBITDA MARGINS PAT & PAT MARGINS (in ₹ Mn) (in ₹ Mn) — (in %) (in ₹ Mn) (in ₹ Mn) 8,0 00 30.5 33 1,4 00 6.5 5.9 27.5 23.9 4.3 12.5 3,0 00 7,0 00 25.7 28 1,2 00 23.3 5.1 3.7 6,0 00 2,5 00 9.4 11. 5 23 7.8 6.6 6.8 1,0 00 2.3 3
Slide 17: Key Ratios – Full Year
Key Ratios – Full Year NETWORTH & ROCE CASH % CASH EQUIVALENT & ROE DEBT & DEBT EQUITY RECEIVABLE DAYS/ PAYABLE DAYS/ (in ₹ Mn) — ROCE (in %) (in ₹ Mn) — ROE (in %) (in ₹ Mn) — (x) NWC DAYS (in ₹ Mn) Receivable Days Payable Days NWC 24.7 23.1 0.38 0.42 12, 000 0.18 1,8 00 1 35 16 26. 0 19.3 14.9 3,0
Slide 18: Balance Sheet Summary (Full Year)
Balance Sheet Summary (Full Year) Particulars FY19 FY20 FY21 FY22 FY23 Particulars FY19 FY20 FY21 FY22 FY23 Equity 4,068 4,335 6,580 8,432 9,722 ASSETS Non-current Liabilities 1,459 1,426 1,197 576 636 Non-current Assets 5,374 5,697 5,703 6,869 7,775 Current Liabilities 1,908 2,165 1,946 1,877 2,157
Slide 19: About Us
About Us
Slide 20: Dodla Dairy Snapshot: Q3 & 9MFY24
Dodla Dairy Snapshot: Q3 & 9MFY24 Founded in 1995, Dodla Dairy is an integrated dairy company based in South India. Processes 40+ 2,100+ 2,500+ and sells milk and produces dairy-based value- added products (“VAPs”) Sales offices Milk and milk Agents product distributors 22+ 15 638 LLPD aggregate Pro
Slide 21: Our Journey So Far: 25+ years of dairy operations
Our Journey So Far: 25+ years of dairy operations in partnership with marquee investors ▪ Investment by The Rise Fund (TGP) as ▪ IFC invested Incorporation of Badvel and Investment by it acquired stake of ~INR1,000Mn Dodla Dairy Sattenapally plants Black River* Black River * ▪ Listed on BSE & ▪ Hyde
Slide 22: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain DAIRY FARM PROCESSING PLANTS Procurement of raw milk from 1.4+ lakh Total 15 milk processing plants in India & farmers across 8,600+ villages through Uganda 8,050+ VLCCs Company regularly incurs capex to Raw milk directly procured from farmers upgrade technology, au
Slide 23: Few of Our Products
Few of Our Products SOLD IN INDIA PASTEURIZED POUCH MILK UHT MILK CURD GHEE ICE CREAM SWEETS & OTHERS Full cream, Standardized Milk, Toned, Double Toned Sachet Curd, Bucket Cow ghee, White ghee Vanilla, Elaichi, Pista, Besan Ladoo, Basundi, Toned Curd, Cup Curd (buffalo ghee) and Badam, Chocolate, D
Slide 24: 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 State-of-the-art manufacturing facilities at Kadapa & Kuppam, Andhra dairy and livestock farming. Additionally, it is also in Pradesh the bu
Slide 25: Company Canvas
Company Canvas
Slide 26: Key Highlights
Our strength to deliver competitive advantage MILK PROCUREMENT 13.8 ▪ All dairy processors have access to the same raw material FY23 22.3 Key Highlights and equipment; what distinguishes us is our dedicated employees and our strong relationship with farmers 12.5 FY22 20.0 12.2 PROCESSING CAPACITY 10
Slide 27: Value-added Products (VAP) Trajectory
Value-added Products (VAP) Trajectory VAP Sales (in ₹ Mn) FY23 6,957 STRONG DISTRIBUTION NETWORK 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 FY22 5,254 FY21 4,324 STRONG
Slide 28: Our Overseas Presence
Our Overseas Presence Salient Features – Overseas Dairy Business Presence in Dairy player margins are higher due to Kenya & Uganda limited competition and constrained supply of processed milk Dodla operates in Kenya and Easier milk farming due to abundance Uganda in Africa through its of grazing lan
Slide 29: Strategic Advantages
Strategic Advantages
Slide 30: Key Strengths
Key Strengths Strong Presence End to end integrated dairy company in South India International Presence Consistent product quality Operations in Uganda and An extensive Product Portfolio Kenya (Milk-Based value-added Products Branding Production Capacity Higher B2C Sales through 15 processing plants
Slide 31: 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 electronic milk analyzers ▪ At chilling centers and processing plants, the raw milk which tes
Slide 32: Focused Engagement and Long-Term Relationship with Dairy Farmers
Focused Engagement and Long-Term Relationship with Dairy Farmers REGULAR DIRECT PAYMENT TIE UP WITH VETERINARIANS ▪ Money paid directly to farmers in ▪ Organize training camps to their bank accounts once every 10 educate about ways to prevent to 15 days common ailments for cattle ▪ ~90% of total far
Slide 33: Investment Rationale
Investment Rationale INTEGRATED SUPPLY AUTOMATED BACKWARD PROVEN ROBUST BALANCE CHAIN PLANTS INTEGRATED TRACK RECORD SHEET Strong Direct Fully automated plants Presence in cattle feed Proven track record of Strong cashflows procurement model, leading to improved business through its successfully int
Slide 34: Dodla’s ESG Commitment
Dodla’s ESG Commitment ENVIRONMENT ▪ We believe that preserving and rebuilding the environment is crucial in providing opportunities for future generations ▪ We are dedicated to producing dairy products in a manner that is humane toward people, animals, and the environment, as well as beneficial to
Slide 35: Capital Market Information
Capital Market Information Few of our Key Investors as on 31st December 2023 (% of Total Equity) SBI MF 9.23 DSP Small Cap Fund 4.68 Bharat Biotech International Ltd. 3.41 32,000+ Ashoka India Opportunities Fund 2.70 Steinberg India Emerging Opportunities Fund 2.69 International Finance Corporation
Slide 36: Contact Us
Contact Us Company Secretary Surya Prakash Mungelkar investorqueries@dodladairy.com T: +91 40 4546 7777 IR Contact Vikash Verma T: +91 9664009029 Hiral Keniya T: +91 9029662801 CORPORATE OFFICE 8-2-293/82/A, 270/Q, Road No 10-C, Jubilee Hills, Hyderabad – 500 033. Telangana, India. T: +91 40 4546 77
Slide 37: Appendix
Appendix
Slide 38: Glossary
Glossary LLPD Lakhs Liter per day LPA Liters Per Annum MTPD Metric Tonnage Per Day MT Metric Ton UHT Utrahigh Temperature Processed Milk VAP Value- added Product milk VLCC Village Level Collection Centers FII Foreign Institutional Investor DRP Dodla Retail Parlours DODLA DAIRY LIMITED 37
Slide 39: 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,