Quarterly Updates: Doodla Dairy and Hatsun Agro Among Top Dairy Companies

Last Friday, the renowned dairy player Dodla Dairy unveiled its June quarter earnings. In today’s intraday session, the shares of Dodla Dairy experienced heightened activity following the announcement of its June quarter results.

In light of this development, we will be examining the various companies operating within the dairy industry. These companies are involved in activities such as procuring milk from farmers, processing milk, and the sale of milk and milk-related products.

On July 19, another dairy firm Hatsun Agro disclosed its quarterly financial results. Both firms operating in the dairy sector have reported strong earnings in the first quarter of FY24.

In the year 2021-22, India achieved the remarkable distinction of being the top milk producer globally, contributing a substantial 24% to the total global milk production. Over the span of eight years, from 2014-15 to 2021-22, India’s milk production has experienced an impressive growth of 51%, reaching a significant volume of 221.06 million tonnes in 2021-22.

The five-leading milk-producing states in India are as follows Rajasthan (15.05%), Uttar Pradesh (14.93%), Madhya Pradesh (8.6%), Gujarat (7.56%), and Andhra Pradesh (6.97%). Collectively, these states account for a significant 53.11% share of the country’s total milk production.

As per fortune business insights, the Indian dairy market size is projected to grow from USD 124.93 billion in 2023 to USD 227.53 billion by 2030, at a CAGR of 8.94% during the forecast period.

First, let’s take a look at the listed players in the dairy space in India. Afterwards, we will provide a brief recap of the quarterly results announced by Hatsun Agro and Dodla Dairy.

Following are the listed players in the dairy space in India

 In Q1 FY24, Hatsun Agro recorded a YoY revenue growth of 6.75%, generating Rs 2151 Crore compared to Rs 2015 Crore. On a sequential basis, the revenue surged by 20.23%, rising from Rs 1789 Crore to Rs 2151 Crore. The operating profit for the quarter was Rs 238 Crore, with a margin of 11%. The net profit stood at Rs 80 Crore.

During the June quarter, milk prices in India reached their highest point due to reduced production and strong demand. Additionally, the concurrent summer season in the quarter led to increased demand for ice creams and curds. Despite a decline in procurement prices, dairy companies in India maintained the prices of their products unchanged to safeguard their margins as per Hatsun Agro.

Meanwhile, Dodla Dairy witnessed a YoY revenue increase of 15%, reporting Rs 823 Crore against Rs 717 Crore. On a sequential basis, the revenue also grew by 13.7%, climbing from Rs 724 Crore to Rs 823 Crore. The operating profit in the June quarter reached Rs 60 Crore, with a margin of 7%. The net profit for the company was Rs 35 Crore.

Today, the shares of Dodla Dairy experienced a significant surge of 7.25% and concluded the day at Rs 822 on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.