Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q1 FY23 Earnings Presentation
38 slides from Dodla Dairy's earnings presentation, Aug 2, 2022
Slide 1: Exchange cover letter for investor presentation
Date: 02 August 2022 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 (Ea
Slide 2: Dodla Dairy Investor Presentation Q1FY23
DODLA DAIRY INVESTOR PRESENTATION Q1FY23 AUGUST CLICK TO EDIT2022 MASTER SUBTITLE STYLE
Slide 3: Table of Content
Table of Content Page No. Particulars 03 Quarterly Highlights 09 Full Year Financials 14 About Us 23 Company Canvas 27 Strategic Advantages DODLA DAIRY LIMITED
Slide 4: Quarterly Highlights
Quarterly Highlights DODLA DAIRY LIMITED 3
Slide 5: Management Commentary
Management Commentary “I am happy to state that Dodla Dairy has reported its highest ever revenues by surpassing INR 7,000 million mark, thereby registering a healthy top-line growth of 40% Y-o-Y in Q1FY23. The Company’s robust operational highlights during the quarter are a testimonial of our focus
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights AVERAGE MILK PROCUREMENT (in LLPD) AVERAGE MILK SALES (in LLPD) 16.0 20.0% YoY 12.0 26.2% YoY 14.0 10.0 12.0 8.0 10.0 6.0 8.0 6.0 4.0 4.0 2.0 2.0 12.3 12.8 12.4 12.3 14.8 8.3 9.5 9.9 9.7 10.4 0.0 0.0 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY
Slide 7: Quarterly Operational Highlights
Quarterly Operational Highlights CURD SALES (in MTPD) VAP SALES (in INR Mn) and VAP SHARE (in % of TOTAL REVENUES) 30.1% 26.0% 24.4% 26.5% 32.5% 450.0 44.8% YoY 2,500 400.0 2,000 350.0 300.0 1,500 250.0 200.0 1,000 150.0 500 100.0 50.0 294.3 252.1 245.4 288.2 426.3 1,515 1,448 1,380 1,536 2,290 0 0.
Slide 8: 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) (in %) 8,000 1,700 28.4 25.5 23.2 30.0 510 12.0 450 7.0 6.9 8.0 7,000 1,650 25.0 500 9.9 10.0 400 7.0 8.0 490 350 6.0 6,000
Slide 9: Consolidated Profit & Loss Results
CONSOLIDATED PROFIT & LOSS RESULTS Particulars (INR in millions) Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenues 7,170 5,121 40.0% 5,897 21.6% Cost of Goods Sold 5,509 3,668 50.2% 4,391 25.5% Gross Profit 1,661 1,452 14.4% 1,507 10.2% Gross Profit margin 23.2% 28.4% -520 bps 25.5% -239 bps Employee Expenses 2
Slide 10: Full Year Financials
Full Year Financials DODLA DAIRY LIMITED 9
Slide 11: Financial Highlights
Financial Highlights OPERATING REVENUE GROSS PROFIT & GROSS MARGINS EBITDA & EBITDA MARGINS PAT & PAT MARGINS (in ₹ Mn) (in ₹ Mn) (in %) (in ₹ Mn) (in %) (in ₹ Mn) (in %) 22,434 12.5 1,400 6.5 5.9 7.0 21,394 3,000 14.0 30.5 7,000 35 19,400 27.5 25.7 1,200 6.0 12.0 6,000 30 23.3 9.4 2,500 15,905 16,8
Slide 12: Key Ratios – Full Year
Key Ratios – Full Year NETWORTH & ROCE CASH & CASH EQUIVALENT & ROE DEBT & DEBT-EQUITY RECEIVABLE DAYS /PAYABLE DAYS /NWC DAYS (in ₹ Mn) ROCE (in %) (in ₹ Mn) (ROE in %) (in ₹ Mn) (x) Receivable Days Payable Days NWC 0.39 22 1,800 0.45 25 25 9,000 30.0 3,000 25.0 25.5 0.37 0.35 23.3 1,600 0.4 19.1 8
Slide 13: Consolidated Profit & Loss (Summary)
CONSOLIDATED PROFIT & LOSS (SUMMARY) CAGR Particulars (INR in millions) FY18 FY19 FY20 FY21 FY22 FY18-22 Revenues 15,905 16,888 21,394 19,440 22,434 9.0% Gross Profit 3,588 4,349 4,988 5,931 6,172 14.5% Gross Profit margin 22.6% 25.7% 23.3% 30.5% 27.5% EBITDA 1,114 1,320 1,409 2,425 2,107 17.3% EBIT
Slide 14: Balance Sheet Summary (Full Year)
Balance Sheet Summary (Full Year) Particulars FY18 FY19 FY20 FY21 FY22 ASSETS Non-current Assets 3,745 5,374 5,697 5,703 6,854 Current Assets 2,263 2,061 2,229 4,019 4,031 TOTAL ASSETS 6,008 7,435 7,926 9,722 10,884 EQUITY AND LIABILITIES Equity 3,398 4,068 4,335 6,580 8,432 Non-current Liabilities
Slide 15: About Us
About Us DODLA DAIRY LIMITED 14
Slide 16: 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)* 15
Slide 17: Our Journey So Far
Our Journey So Far: 25+ years of dairy operations in partnership with marquee investors Parent Badvel and Milk powder Investment by Incorporation and SMP plant processing plant Sattenapally Black River * of Dodla Dairy at Nellore at Nellore plants 1995 1997 2007 2009 2012 2022 2021 2019 2017
Slide 18: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain DAIRY FARM CHILLING CENTRES PROCESSING PLANTS DISTRIBUTION CENTERS • Procurement of raw milk • 40+ sales offices, • Total 15 milk processing plants • Transportation from villages from ~1.2 lakh farmers across ~3,000 distribution agents in India & Uganda through 860
Slide 19: 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 20: Few of Our Products - Sri Krishna Milks
Few of Our Products- Sri Krishna Milks TONED MILK CURD NATURAL GOLD MILK RICH MILK DODLA DAIRY LIMITED 19
Slide 21: 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 ₹138MN ₹14MN Revenues in Q1FY
Slide 22: 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 21
Slide 23: 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 24: Company Canvas
Company Canvas DODLA DAIRY LIMITED 23
Slide 25: 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 20.0 18.0 16.8 MILK PROCUREMENT 13.4 13.0 12.5 All dairy processors have access to
Slide 26: Our Value-added Product (VAP) Investments
Our Value-added Product (VAP) Investments 5,254 4,890 VAP Sales (in ₹ Mn) 4,324 3,882 3,455 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 FY18 FY19 FY20 FY21 FY22 STRONG V
Slide 27: Our Overseas Presence
Our Overseas Presence 5% contribution of Africa Dodla operates in Kenya and Uganda in Africa through its to milk industry 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 wi
Slide 28: Strategic Advantages
Strategic Advantages DODLA DAIRY LIMITED 27
Slide 29: Key Strengths
Key Strengths 3 rd 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 15 Processing Pla
Slide 30: 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 31: 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 32: 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 33: 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 34: Capital Market Information
Capital Market Information 42,000+ Total Shareholders Few of our Key Investors as on 30th June 2022 (% of Total Equity) 6% TPG 9.80 12% Non Institutional SBI MF 9.24 Mutual Funds International Finance Corporation 4.46 19% Flls. & Foreign Companies 63% Ashoka India Opportunities Fund 2.70 Promoter Ad
Slide 35: Contact Us
Contact Us CHIEF FINANCIAL OFFICER Ganji Anjaneyulu investorqueries@dodladairy.com T: +91 40 4546 7777 IR Contact: Vikash Verma T: +91 9664009029 Diwakar Pingle T: +91 9833904971 CORPORATE OFFICE 8-2-293/82/A, 270/Q, Road No 10-C, Jubilee Hills, Hyderabad – 500 033. Telangana, India. T: +91 40 4546
Slide 36: Appendix
Appendix DODLA DAIRY LIMITED 35
Slide 37: 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 38: 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 37