Dollar Industries Limited announces Q2 FY23 results

Dollar Industries Limited, one of the leading Garment & Hosiery companies in the country has announced its financial results for the quarter ended September 30th, 2022.

Highlights for Q2FY23 & 6MFY23 Standalone Financials

- Total Revenue for Q2FY23 & 6MFY23 stood at Rs.342.30 crore & Rs.706.30 crore as compared to Rs.391.00 crores & Rs.596.50 crore for Q2FY22 & 6MFY22 de-growth of 12.45% for Q2FY23 & growth of 18.41% for 6MFY23.

- Operating Revenue for Q2FY23 & 6MFY23 stood at Rs.341.91 crore & Rs.703.35 crore as compared to Rs.390.67 crores & Rs.595.25 crore for Q2FY22 & 6MFY22 de-growth of 12.48% for Q2FY23 & growth of 18.16 % for 6MFY23.

- Gross Margin for Q2FY23 & 6MFY23 stood at 31.03% & 32.50 % as compared to 34.55 % & 36.29 % in Q2FY22 & 6MFY22

- EBITDA for Q2FY23 & 6MFY23 stood at Rs.30.71 crore & Rs.70.48 crore as compared to Rs.62.01 crores & Rs.98.26 crore for Q2FY22 & 6MFY22 degrowth of 50.48% & 28.27 % for Q2FY23 & 6MFY23.

- PAT for Q2FY23 & 6MFY23 stood at Rs.17.95 crore & Rs.45.82 crore as compared to Rs.41.24 crores & Rs.64.35 crore for Q2FY22 & 6MFY22 degrowth of 56.47% & 28.79 % for Q2FY23 & 6MFY23.

Commenting on the results, Mr. Vinod Kumar Gupta, Managing Director, Dollar Industries Limitedsaid, "Currently the entire Indian hosiery sector is facing the impact of price volatility in cotton and yarn prices. In the last quarter and half year ended Sept '2022 there has been substantial inventory losses due to continuous falling of cotton and yarn prices. However, such losses are temporary in nature and seems to have come to an end as the cotton and yarn prices stabilized at sustainable level. We want to also share that our Project Lakshya has given us a 100% growthcompared to the last financial year. 6MFY23 revenue contribution from Project Lakshya is 16% as compared to 8% in last entire year."

In spite of these challenges, Company showed a revenue growth of 18% in terms of total revenue on 6 month basis as compared to same period last year. Our Domestic Sale showed a growth of 10% in terms of Volume while Modern Trade & E-com Sale showed a growth of 67% in terms of volume on 6 month basis as compared to same period last year.

As promised, the company has opened 8 EBO's till date and plans to open more by the end of the fiscal to touch the target of 20 to 25 EBO's.

Recently Company has launched a new TVC with Mr. Akshay Kumar and Ms.Yami Gautam for our Thermal Category to give extra mileage to the winter sale. Company also plans to launch new product range in Women's Athleisure segment and Mens's Active Wear in Force Nxt Brand.

First in the hosiery Industry, the Company has approved ESOP plan which is subject to shareholder's approval. Such plan would help the company in retaining high talent and suitably rewarding the employees.

Shares of Dollar Industries Limited was last trading in BSE at Rs. 483.70 as compared to the previous close of Rs. 494.40. The total number of shares traded during the day was 6331 in over 711 trades.

The stock hit an intraday high of Rs. 493.65 and intraday low of 477.15. The net turnover during the day was Rs. 3076422.00.

Source : Equity Bulls

Keywords

DollarIndustries INE325C01035 Q2FY23 H1FY23 ResultUpdate