Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q2 FY2022 Earnings Presentation
34 slides from Dodla Dairy's earnings presentation, Oct 23, 2021
Slide 1: Investor Presentation cover letter to exchanges
DODLA DAIRY LIMITED es. MILK & MILK PRODUCTS Corporate Office : # 8-2-293/82/A, Plot No. 270-Q, Road No. 10C, Jubilee Hills, Hyderabad - 500033. DODLA DAIRY Ph : 040-4546 7777 Fax : 040-4546 7788 Date: 23 October 2021 The General Manager The Manager Department of Corporate Services Listing Departmen
Slide 2: Dodla Dairy Investor Presentation October 2021 Q2'22
DODLA DAIRY INVESTOR PRESENTATION OCTOBER 2021 Q2’22 CLICK TO EDIT MASTER SUBTITLE STYLE
Slide 3: Contents
01 04 About Us Full Year Financials 02 05 Company Canvas Quarterly Highlights 03 Strategic Advantages Contents DODLA DAIRY LIMITED
Slide 4: About Us
About Us DODLA DAIRY LIMITED 3
Slide 5: 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 6: Our Journey So Far: 25+ years of dairy operations
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 7: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain • Procurement of raw milk DAIRY FARM CHILLING CENTRES • Transportation from villages from ~1.2 lakh farmers across through ~800 primary vehicles 7,600+ villages through ~7,400 to 100+ chilling centers/plants VLCCs • 91% of raw milk directly 01 procured from farmer 0
Slide 8: 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 9: 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 10: 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 9
Slide 11: Board of Directors
Board of Directors Mr. Dodla Mr. Raja Rathinam Mr. Raman Tallam Sesha Reddy Independent Director Puranam Chairman & Independent Director Non-Executive Director Exp: 22+ years in Dairy Exp: 40+ years in Dairy Exp: SBI Capital Markets Limited, Board Member: Nelcast Limited Previously Associated: Natio
Slide 12: Company Canvas
Company Canvas DODLA DAIRY LIMITED 11
Slide 13: 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 18 17 MILK PROCUREMENT ▪ All dairy processors have access to the same 13 13 raw materia
Slide 14: 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 15: 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 16: Strategic Advantages
Strategic Advantages DODLA DAIRY LIMITED 15
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Full Year Financials
Full Year Financials DODLA DAIRY LIMITED 21
Slide 23: 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 24: 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 25: Quarterly Highlights
Quarterly Highlights DODLA DAIRY LIMITED 24
Slide 26: Management Commentary
Management Commentary “I am pleased to announce that our resilient model has yet again shown its grit in another successive quarter, delivering a revenue growth of 23% Y-o-Y. Our expanding operations and in-roads in new markets are visible through growth in number of our facilities and direct and in
Slide 27: Quarterly Operational Highlights
Quarterly Operational Highlights ~12.8 LLPD 9.5 LLPD Average milk procurement Average milk sales during during Q2FY22 as compared Q2FY22 as compared to to 11.6 LLPD in Q2FY21 8.3 LLPD in Q2FY21 252.1 MTPD 22.6% Curd sales during Q2FY22 as Revenue from value added products (VAP) compared to 186.6 MTP
Slide 28: Key Ratio – Quarterly
Key Ratio – Quarterly ▪ During Q1FY22, our subsidiary OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) in Uganda, Africa received an Income Tax refund of Rs. 91 6,0 00 1,7 00 40 1,6 50 34.5 29.3 35 5,0 00 1,6 00 28.4 30 million. 4,0 00 1,5 50 25 3,0 00 1,5 00 20 1,4 50 15 2,
Slide 29: Capital Market Information
Capital Market Information 46,000+ Total Shareholders (% of Total Few of our Key Investors as on 30th September 2021 Equity) 16% SBI Consumption Opportunities Fund 7.37 Public International Finance Corporation 4.59 10% Mutual Funds Ashoka India Opportunities Fund 2.49 Flls. & Foreign Companies Adity
Slide 30: Contact Us
Contact Us CHIEF FINANCIAL OFFICER Ganji Anjaneyulu investorqueries@dodladairy.com T: +91 40 4546 7777 CHRISTENSEN ADVISORY Diwakar Pingle dpingle@christensenir.com T: +91 9833904971 Kanav Khanna Kkhanna@christensenir.com T: +91 9910036240 CORPORATE OFFICE 8-2-293/82/A, 270/Q, Road No 10-C, Jubilee
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 Tonnes 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