Dodla Dairy Q4 Results Review - Higher VAP Sales Likely To Aid Margins: ICICI Securities

ICICI Securities Report

Takeaways from Dodla Dairy Ltd.'s Q4 FY24:

1. Value-added-products’ contribution to total sales has increased both in Q4/FY24 (highest ever in FY24). We believe higher revenues from curd are likely to contribute to overall profitability.

2. The gross margin expanded 628 bps YoY, largely on lower input costs. It expanded 920 bps YoY, excluding the Rs 320 million of inventory write-downs.

3. Dodla’s Kenya dairy plant has commenced operations; cattle feed capacity expanded by five times.

Benefits from these capacity expansions shall be visible in H2 FY25–26E. Dodla will likely to further strengthen its market position with geographical/distribution expansion, higher contribution from VAP sales and strong brand investments.

We remain positive on Dodla given its compelling competitive advantages and cash flow generation. Maintain Add.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.