Dodla Dairy Limited — PPTs, 19-05-2025: Investor Presentation

1. Financial Highlights:

Dodla Dairy reported consolidated revenues of ₹3,720 Cr for FY25, up 19% YoY. EBITDA grew 31.8% to ₹381 Cr, with margins improving to 10.2%. PAT surged 55.9% to ₹260 Cr, achieving a 7.0% margin versus 5.3% last year. Q4 revenues were ₹910.6 Cr (+15.5%), EBITDA ₹83.5 Cr (+10.7%), and PAT ₹68 Cr (+45.1%). The company remains net debt-free, with a strong ROCE of 24.4%. Operating efficiencies and tight cost control supported margin expansion despite inflation. Milk procurement averaged 17.1 LLPD, with value-added products (VAP) making up 35% of FY25 sales.

2. Strategic Initiatives & Growth Drivers:

Dodla’s growth focus remains on VAPs, which expanded 28% in Q4 and 46% for FY25. Distribution network expansion continues alongside capacity optimization in new Kenya plants and the cattle feed segment (Orgafeed). Capex targets automation and facility upgrades in India and Africa. The integrated approach into cattle feed enhances farmer engagement and raw material cost control. Increased brand-building through TV and digital channels aims to deepen consumer reach.

3. Business Developments:

FY25 featured new plants commissioned in Kenya and an Orgafeed facility in Andhra Pradesh. Acquisition of two KC Dairy processing plants and expansion in Uganda and Kenya bolster the African footprint. Land purchases for dairy and cattle feed point to greenfield growth plans. The cattle feed business leverages milk procurement networks to strengthen backward integration with farmers.

4. Market Position & Competitive Advantage:

Dodla benefits from an integrated supply chain with direct access to 1.3+ lakh farmers and 16 processing plants in India and East Africa. Its distribution spans 13 states with 2,190 distributors and 839 retail parlours. The company’s consistent quality, strong farmer ties, and operational flexibility set it apart. Presence in fast-growing African markets offers diversification and scale, reinforcing leadership in Southern India’s dairy sector.

5. Investor Implications:

Strong double-digit revenue and profit growth, led by VAPs and geographic expansion, indicate positive growth potential. A net cash position and margin improvement enhance financial agility. Growth in value-added products and cattle feed adds margin levers, while international operations reduce concentration risk. Execution on new plant ramp-up and acquisitions will be key monitoring points. Brand investments and innovation support sustainable volume growth.