The shares of this Telangana-based dairy company jumped 7.2 percent intraday after the company announced a 53 percent increase in its net profits in Q3 FY25.
Price Action
With a market capitalization of Rs 6,576.33 crore, Dodla Dairy Ltd surged 8.3 percent in Thursday’s trading session and made an intraday high of Rs 1,125.10 per share compared to its previous closing price of Rs 1,049.10 per share. The stock reiterated from its day’s high and closed at Rs 1,088.00 which is 3.71 percent higher than the previous closing price.
What Happened
The shares of Dodla Dairy Ltd surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 20.6 percent year on year from Rs 746.84 crore to Rs 901.2 crore in Q3FY25. However, on a quarter-on-quarter basis, it fell 9 percent from Rs 997.6 crore in Q2FY25.
Out of the Rs 901.2 crore revenue from operations, 89.05 percent comes from India while the remaining 10.95 percent comes from their international facilities in Kenya and Uganda.
This was accompanied by a 53.7 percent increase in net profits from Rs 41.3 crore to Rs 63.5 crore in Q3FY24. On a quarter-on-quarter basis, the net profit rose by 0.3 percent from Rs. 63.3 crore. Further, the company’s Diluted EPS substantially increased by 53.19 percent year on year from Rs 6.88 to Rs 10.54.
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Capex Plans
The board has sanctioned a capital expenditure of Rs. 280 crore for setting up a new plant and machinery, along with the necessary infrastructure in Maharashtra. This amount includes the previously approved Rs. 15 crores for land acquisition. The funding will be obtained through internal accruals and debt.
Company Overview
Dodla Dairy is a Telangana-based integrated dairy company. It processes and markets milk, along with producing various other dairy products. Dodla Dairy has also expanded its presence in Africa, making a notable impact on the dairy industries in Kenya and Uganda. Its business model in Africa closely follows the approach used in India, consisting of direct milk procurement, processing, and distribution.
As of Q3 FY25, the company has 16 processing plants, 160 chilling centres, and 645 retail outlets. About 98 percent of the milk is sourced directly from farmers. Internationally, they have 2 plants in Africa (Kenya & Uganda) and 284 distributors, which they operate through the subsidiary Lakeside Dairy Ltd.
Written by Shwetha Sairam
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