Dodla Dairy, a prominent dairy product maker, witnessed a significant boost in its financial performance, leading its stock to touch an all-time high. The company’s revenue from operations soared by an impressive 14.8 percent, reaching Rs 823 crore during the first quarter of FY24 compared to the same period in the previous year. Furthermore, Dodla Dairy’s net profit experienced substantial growth, surging by 40 percent YoY, totaling Rs 35 crore for the quarter.
All-Time High for Dodla Dairy Shares
In an extraordinary turn of events, Dodla Dairy shares reached an all-time high of Rs 898.9 in early trade on July 24. This surge in share value was attributed to the company’s milestone achievement of generating quarterly revenue of Rs 800 crore for the first time during the April-to-June quarter.
Financial Performance Boosts Share Value
Following the impressive financial results for the June quarter, Dodla Dairy’s shares were trading at Rs 870, showing a remarkable 13.29 percent increase at 11.49 am on the National Stock Exchange. The market responded positively to the 40 percent YoY increase in net profit and a substantial 14 percent surge in revenue. Although the stock briefly touched an all-time high of Rs 898.90 earlier, it experienced a minor dip afterward.
Unprecedented Trading Activity
The exceptional performance of Dodla Dairy resulted in a surge in trading activity. Approximately 20 lakh shares exchanged hands on the exchanges, which was an astonishing ten times more than the company’s average monthly trading volume.
Revenue Growth Factors
The company attributed the significant growth in operating revenue to the surge in sales of value-added products and fat-based items during the April-to-June quarter. Several factors contributed to this achievement, including an extended summer season, a diversified product portfolio, and a strong brand recall, as highlighted in a press release from the company.
Boost in Net Profit and Margins
Dodla Dairy’s net profit witnessed an impressive 40 percent YoY jump, reaching Rs 35 crore in Q1FY24. Moreover, the company’s operating profit margin or earnings before income tax, depreciation, and amortization (EBITDA) margins increased by 104 basis points YoY, reaching 7.3 percent in the same period. This improvement in margins was attributed to a decline in milk prices, raw material costs, and other expenses during the quarter.
Steady Growth in Sales
The company experienced a steady increase in milk sales, which grew by 6.1 percent in Q1FY24 compared to the same period the previous year. Additionally, curd sales also witnessed growth, rising by 3.1 percent YoY during the same period.
Dodla Dairy’s Product Range
Dodla Dairy’s diverse product range includes milk, butter, ghee, curd, paneer, flavored milk, lassi, ice cream, and milk-based sweets. The company procures, processes, and sells these dairy products, catering to a broad consumer base.
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