Telangana-based Dodla Dairy Ltd, a leading integrated dairy company, reported 2.6% increase in consolidated net profit for the March quarter at ₹70 crore compared with the year-ago period, despite a challenging operating environment.
Revenue rose 18% to ₹1,075 crore. Milk procurement volume increased 13% to 18.5 lakh litres per day (LLPD), while sales volume grew 19.5% to 14 LLPD. Total value-added products (VAP) sales stood at ₹296 crore against ₹284 crore.
Summer products support growth
The company said high-margin summer products such as buttermilk, flavoured milk, lassi and paneer contributed to the quarter’s performance. However, certain other value-added products could not achieve their full growth potential due to seasonal variations.
Dodla Dairy said growth during the quarter was largely volume-driven, while margins remained under pressure. The increase in milk procurement costs was not fully passed on to consumers in order to protect market share.
Procurement prices may normalise
“Typically, our pricing strategy moves in tandem with industry trends. The milk supply situation is now showing signs of improvement, creating the possibility of a gradual normalisation in procurement prices,” said Managing Director Dodla Sunil Reddy.
“While we see an opportunity for passing on a part of the elevated input costs to consumers in the near term, we remain firmly focused on long-term growth,” he added.
Expansion plans in India and Africa
“Within India, our growth will be supported by the upcoming integrated dairy plant in Maharashtra and our efforts to replicate our successful growth playbook in Eastern India. In Africa, we plan to leverage our brand recall through a greenfield plant in Uganda,” he said.
Dodla Dairy remains focused on expanding its VAP portfolio and strengthening its geographical presence across domestic and international markets.
The board recommended a final dividend of ₹5 per share.