New Delhi, July 25 — Dodla Dairy Ltd on Saturday reported a consolidated net profit of Rs 40.64 crore for the quarter ended June 30, about a 42 per cent decline sequentially from Rs 69.8 crore in the previous quarter.
However, revenue rose 19 per cent to a record Rs 1,197.94 crore, but profitability declined due to elevated milk procurement prices and strategic inventory buildup for upcoming quarters, the company said in a regulatory filing.
Managing Director of Dodla Dairy, Dodla Sunil Reddy said the strategy of inventory buildup is in line with overall industry trends, adding that the firm expects prices to start normalising Q2 onwards.
"With extended summers, our VAP portfolio, including curd, buttermilk, lassi, and ice cream, delivered record sales, reaching about a third of our total sales," he said.
The company recorded EBITDA of Rs 64.9 crore during the quarter up from 53.8 crore in previous quarter.
The uptick in expenses also impacted profitability of the business. Employee cost surged over minimum wages criteria for off-roll employees as per new labour laws.
Employee expenses rose 7.7 per cent from 51.7 crore to 55.7 crore on a sequential basis and surged 18 per cent on an annual basis.
The company said that it saw the highest ever milk procurement volume of 21.1 LLPD with 13 per cent YoY growth.
"Disciplined improvement in the operational efficiency in this vertical leads to better Q1FY27 operating margins as compared to full year FY26," the filing said.
Africa business delivered strong revenue growth of 45.6 per cent YoY, largely driven by a robust milk sales growth of 52.3 per cent YoY.
Further, the Board of Directors approved a primary investment of approximately Rs 11.6 crore for a 2 per cent stake in Sids Farm, a D2C dairy brand.