Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q2 FY24 Earnings Presentation
37 slides from Dodla Dairy's earnings presentation, Oct 21, 2023
Slide 1: Exchange filing cover letter for investor presentation
Date: 21 October 2023 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 October 2023 | Q2FY24
INVESTOR PRESENTATION October 2023 | Q2FY24
Slide 3: Table of Contents
Table of Contents 3 Q2 & H1FY24 Highlights 12 Full Year Financials 16 About Us 22 Company Canvas 26 Strategic Advantages
Slide 4: Q2 & H1FY24 Highlights
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Slide 5: Management Commentary
Management Commentary “Dodla Dairy continues to prudently invest in the supply chain, thereby delivering consumer delight to its stakeholders. The Company’s revenues grew by 10.4% YoY to INR 7,678 Mn in Q2FY24. Dodla’s Value Added Products (VAP) and Fat & Fat products sales continued to display mome
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights 17.0 18.9% YoY Average milk procurement Average milk sales during Q2FY24 LLPD during Q2FY24 as compared stood flat at 10.9 LLPD in Q2FY23 to 14.3 LLPD in Q2FY23 13.1% YoY Revenue from value added products (VAP) and fat & fat-based products was 10.9 at ₹1,953 Mn of th
Slide 7: Half Yearly Operational Highlights
Half Yearly Operational Highlights 2.6% YoY 16.4 13.1% YoY Average milk procurement Average milk sales during LLPD during H1FY24 as H1FY24 as compared to 10.7 compared to 14.5 LLPD in LLPD in H1FY23 H1FY23 13.0% YoY Revenue from value added products (VAP) and fat & fat-based products was 11.0 at ₹4,
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) 25.3% 23.1% 26.1% 32.0% 26.1% 18.0 18.9% YoY 12.0 500.0 5.8% YoY 3,000 450.0 16.0 11.0 2,500 400.0 14.0 10
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 8,000 14.0 7,000 300.0 10.0 12.0 6,000 250.0 8.0 10.0 5,000 200
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) 8,500 2,300 25.6 23.7 26.8 950 8.5 9.1 27.0 5.7 5.7 7.5 7.3 9.0 600 4.2 850 2,100 22.0 8,000 5.5 750 7.0 1,900 500 17.0 3
Slide 11: Key Financial Metrics (Yearly results)
Key Financial Metrics (Yearly results) 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 27.5 35 3,000 25.0 2,000 5.9 4.3 9.4 6.8 15.0 1,800 5 7,000 23.9 25 2,500 1,600 5.0 0 15 1,400 6,000
Slide 12: Consolidated Profit & Loss Results
Consolidated Profit & Loss Results Particulars (INR in millions) Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY FY23 Revenues 7,678 6,953 10.4% 8,234 (6.8%) 15,912 14,123 12.7% 28,120 Cost of Goods Sold 5,619 5,171 8.7% 6,283 (10.6%) 11,901 10,672 11.5% 21,409 Gross Profit 2,059 1,783 15.5% 1,952 5.
Slide 13: Full Year Financials
Full Year Financials
Slide 14: 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) 8,000 30.5 33 1,400 6.5 5.9 27.5 23.9 4.3 12.5 3,000 7,000 25.7 28 1,200 23.3 5.1 3.7 6,000 2,500 9.4 11.5 23 7.8 6.6 6.8 1,000 2.3 3.1 5,000
Slide 15: 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 1,800 1 35 0.02 16 26.0 19.3 14.9 3
Slide 16: 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 17: About Us
About Us
Slide 18: Dodla Dairy Snapshot: Q2 & H1FY24
Dodla Dairy Snapshot: Q2 & H1FY24 Founded in 1995, Dodla Dairy is an integrated dairy company based in South India. Processes 40+ 2,000+ 2,750+ and sells milk and produces dairy-based value- added products (“VAPs”) Sales offices Milk and milk Agents product distributors 22+ 15 625+ LLPD aggregate Pr
Slide 19: 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 20: 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 8,500+ villages through Uganda 8,000+ VLCCs Company regularly incurs capex to Raw milk directly procured from farmers upgrade technology, au
Slide 21: 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 22: Orgafeed Private Limited: Built On A Strong Foundation
Orgafeed Private Limited: Built On A Strong Foundation State-of-the-art manufacturing facilities at Kadapa & Kuppam, Andhra Pradesh Orgafeed primarily engaged in farming, breeding, agriculture, We have tied up with various veterinarians to provide services to farmers horticulture and allied activiti
Slide 23: Company Canvas
Company Canvas
Slide 24: Key Highlights: Our strength to deliver competitive advantage
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 25: 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 26: Our Overseas Presence
Our Overseas Presence Salient Features – Overseas Dairy Business Presence in Kenya & Uganda Dairy player margins are higher due to limited competition and constrained supply of processed milk Dodla operates in Kenya and Uganda in Africa through its Easier milk farming due to abundance of grazing lan
Slide 27: Strategic Advantages
Strategic Advantages
Slide 28: 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 29: 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 30: 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 ~89% of total far
Slide 31: 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 32: 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 33: Capital Market Information
Capital Market Information Few of our Key Investors as on 30th September 2023 (% of Total Equity) SBI MF 9.23 DSP Small Cap Fund 4.06 Bharat Biotech International Ltd. 3.41 34,000+ Ashoka India Opportunities Fund 2.70 Steinberg India Emerging Opportunities Fund 2.52 International Finance Corporation
Slide 34: 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 35: Appendix
Appendix
Slide 36: 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 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,