Dollar Industries Limited, one of the leading Garment & Hosiery companies in the country has announced its financial results for the quarter ended December 31st, 2023.
Highlights for Q3FY23&9MFY23Standalone Financials:
Total Revenue for Q3FY23&9MFY23stood at Rs.285.89 crore & Rs.990.94 crore as compared to Rs.382.98 crore& Rs.973.34 crore for Q3FY22&9MFY22de-growth of 25.35% for Q3FY23&growth of 1.81% for 9MFY23.
Operating Revenue for Q3FY23 & 9MFY23stood at Rs.285.33 crore & Rs.987.45 crore as compared to Rs.381.49 crores & Rs.970.59 crore for Q3FY22 & 9MFY22de-growth of 25.20% for Q3FY23 &growth of 1.74 % for 9MFY23.
Gross Margin for Q3FY23 & 9MFY23 stood at 30.12%& 31.72 % as compared to 34.20%&35.06 % in Q3FY22&9MFY22
EBITDA for Q3FY23 & 9MFY23stood at Rs.19.96 crore & Rs.90.44 crore as compared to Rs.65.80 crores & Rs.164.07 crore for Q3FY22 &9MFY22 de-growth of 69.66% &44.87 % for Q3FY23 &9MFY23.
PAT for Q3FY23 & 9MFY23stood at Rs.8.73 crore & Rs.54.56 crore as compared to Rs.44.40 crores & Rs.108.76 crore for Q3FY22 &9MFY22 de-growth of 80.33% &49.83 % for Q3FY23 &9MFY23.
Commenting on the results, Vinod Kumar Gupta, Managing Director, Dollar Industries Limited said, “Due to the shift in seasonality and cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high cost inventory, our Q3 sales and margin has been adversely effected. Despite all this challenges company generated a positive cash flow of Rs.98 crore from operating activities in 9MFY23 as compared to Rs.92 lacs in 9MFY22.
But now things are getting stable and channel inventory has also been reduced due to low volume offtake by the business partners in this quarter. High inventory cost has also been optimized. With these, we are expecting a good demand in coming quarters due to early festival sales in quarter four. Our marketing spends have also been optimized and we don’t have any major campaigns in the coming quarter.
In order to strengthen our market share, we have always been aggressive to increase our product portfolio by including a new range of products in the Women’s segment and Active wear in the Premium Segment. Recently, we have launched our new product, Dollar Raincoat, under Dollar Protect category, which will add on an extra boost to the sales in coming quarters.
Project Lakshya, our Flagship project, is doing well and has increased the share of revenue contribution in our sales from 7 % in 9 MFY22 to 17 % in 9 MFY23. This has led us to strengthen our sales force for smoother operations.
We, at Dollar, are happy to announce that we have opened our 12th EBO on Pan India level and few more EBO’s are expected to open by Q4FY23 which will create extra demand in the D2C segment.
Additionally, our E-Commerce sale has shown 16% growth in sales for 9 MFY23 (y-o-y).
We would continue to focus on increasing our distribution network, strengthening the product portfolio and keeping our supply chain robust.”
