Shares of Dodla Dairy surged 8.5 percent in early trade on October 23, buoyed by the company's strong performance in the July-September quarter.
The company's net profit in the quarter under review rose around 11 percent on year to Rs 43.60 crore as against Rs 39.40 crore in the year-ago period.
The strong bottomline was aided by a 10.4 percent jump in revenues to Rs 767.70 crore backed by strong growth in the domestic as well as international business.
"Dodla’s Value Added Products (VAP) and Fat & Fat products sales continued to display momentum with 13.1 percent on year growth at Rs 195.3 crore owing to deeper distribution channel penetration aided by strong brand recall," Dodla Sunil Reddy, Managing Director at Dodla Dairy stated in an exchange filing.
At 10.35 am, shares of Dodla Dairy were trading 3.10 percent higher at Rs 692.55 on the National Stock Exchange.
Volumes were also strong as four lakh shares changed hands on the exchanges so far as against the one-month daily traded average of one lakh shares.
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Along with the company's strong bottom line and topline growth, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin also expanded 84 basis points to 9.10 percent in July-September as compared to 8.5 percent in the same quarter of the preceding fiscal.
The company attributed the improvement in margins to low raw material prices and a decline in other expenses.
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