Dodla Dairy Ltd announced a consolidated net profit of Rs 40.64 crore for the quarter ending June 30, marking a 42% decrease from the previous quarter’s Rs 69.8 crore. However, the company’s revenue surged by 19% to Rs 1,197.94 crore. This growth was overshadowed by reduced profitability due to high milk procurement costs and strategic inventory planning for the future.
Managing Director Dodla Sunil Reddy explained that the inventory strategy aligns with industry norms, anticipating price stabilization in the second quarter. The company’s Value-Added Product (VAP) segment, including curd, buttermilk, lassi, and ice cream, achieved record sales, constituting a significant portion of total sales.
During the quarter, Dodla Dairy recorded an EBITDA of Rs 64.9 crore, up from Rs 53.8 crore in the preceding quarter. However, increased expenses impacted overall profitability. Employee costs rose notably, surpassing minimum wage standards for off-roll employees under new labor regulations.
The company observed a record high milk procurement volume of 21.1 LLPD, reflecting a 13% year-on-year growth. Operational enhancements in this sector contributed to improved operating margins in Q1FY27 compared to the previous fiscal year. Additionally, the African business division experienced a robust 45.6% revenue growth, primarily fueled by a 52.3% surge in milk sales.
Moreover, Dodla Dairy’s Board of Directors sanctioned a primary investment of around Rs 11.6 crore for a 2% stake in Sids Farm, a direct-to-consumer (D2C) dairy brand.
