- Total Turnover has grown by 14.50 % to Rs 6671 m
- Dairy turnover grew by 6.79 % growth to Rs 4596 mn
- Milk volume Sales Grew by 5.89% to 8.63 LLPD
- 18.22 % growth achieved in Branded Value Added Products Sale
- 19.43 % growth in Packaged Curd sales (accounts for approx. 80% of Branded Value Added Products Sales)
- 12.16 % de-growth in Milk Procurement to 10.55 LLPD (Lakh Liters Per Day)
- Dairy EBITDA is at Rs 369 mn.
- Retail EBITDA is at Rs 11 mn as against Rs (21) mn in Q3 previous year.
- Agri EBITDA is at Rs (1.10) mn as against Rs (1.30) mn in Q3 previous yea
- Vet Ca EBITDA is at Rs 4.50 mn as against Rs 3.50 mn in Q3 previous year.
- Bakery EBITDA is at Rs 2 mn as against Rs 1.40 mn in Q3 previous year.
- Total debt stands as Rs 124 crore, long term- 67 crore, short term-67 crore
- Procurement price is Rs 32.60 per liter right now
- Milk prices going up both from procurement side to sale side
- Different increase in prices in different market
- On average, 2 RS per liter increase both in the procurement price and sale price is expected
- Company will increase the milk prices by around rs2 per liter
- Curd prices will be increased by RS 4 per liter
- During this quarter there was no revision in milk prices. However, realizations increased due to favorable product mix (buffalo vs cow milk, full cream vs toned)
- Fat content in milk
- Accumulated loss in retail is Rs 300 crore
- 20% of the total sales comes from their own parlour
- Working capital cycle for dairy - inventory period is 19 days, trade receivables are 2 days and trade payables are 13 days, the networking capital cycle is 7 d
- Procurement volume went down by 12.2% y-o-y
- Company claimed that this was because previous year, the company leased a plant in Haryana which converted milk into milk powder and such conversions did not take place this time.
- Current procurement is 10.5 lakh liters per day
On Retail demerger
- They have got the no objection from the SEBI Stock Exchanges.
- Applications have been filed in the NCLT and the competition commission
- Approvals are expected by March end or April beginning and integration with Future retail should begin by May
- The demerger will enable the retail stores to join a larger group, which is scaling up the stores faster and it is already profitable business
- Also, the company expects that retail business will able to earn higher margins by joining with a larger group which is important as currently the division is incurring losses at the PAT level.
- It will also help the company to sell its products through the larger group of future retail
- Lock-in period is for 3 years after which they can exit their position
Acquisition of Retail dairy
- It will help in building scale and making operations viable in Delhi
- Reliance also offered their shelf space they have around 550, 600 food and grocery stores where the company can supply its products
- Capex is expected to be around 70-75 crore per year for the next 12-18 months
- Tax rate was 29% this year, compared to 34% previous year
- Company said the tax rate is expected to go down as their efforts to bring renewable energy will bring in tax benefits due to accelerated depreciation
- Initial plan to reach 6000 crore revenue mark by 2020 will have to redrafted since they are planning to demerge the retail, agri, bakery verticals
- For the dairy vertical they are still aiming the 4150 crore revenue mark
- To achieve increment growth, they are increasing their capex to increase capacity
- Value added products are expected to have 40% of the total revenue share by 2020 compared to 21% right now