One of the leading garment and hosiery companies in India, Dollar Industries Limited, recently announced its financial results for the quarter that ended on 30th June 2022.
The company’s total revenue was Rs 363.99 crore for Q1FY2023 compared to Q1FY2022, which was Rs 205.49 crore, which was a growth of 77.13% for Q1FY2023. For Q1FY2023, operating revenue was Rs 361.43 crore compared to Q1FY2022, which was Rs 204.58, which was a growth of 76.67% for Q1FY2023. The gross margin was 33.9% for Q1FY2023 compared to 32.1% in Q4FY2022.
EBITDA was Rs 39.77 crore for Q1FY2023, which is 10.93% compared to that of Q1FY2022, which was Rs 36.25 crore, which is 17.64%, which is a growth of 9.71% for Q1FY2023. While PAT for Q1FY2023 was Rs 27.87 crore, which is 7.66% compared to that of Q1FY2022, which was Rs 23.11 crore, which is 11.25%, which is a growth of 20.60% for Q1FY2023.
Commenting on the results, Mr. Vinod Kumar Gupta, Managing Director, Dollar Industries Limited said, “The financial results for the first quarter of FY22-23 indicate that the Company has given robust performance in terms of revenue as well as volume. Our total revenue has given a growth of 77.13 % YoY led by volume growth of 54% YoY. The growth in revenue was driven mainly by our flagship brands Dollar Man and Dollar Always. Adding on to this our Dollar Woman brand also did significantly well along with premium brand Force Nxt.
The Company’s latest offering in the Brassiere product range under Dollar Woman brand has opened a new gate for the women’s product segment and has received good feedback from the market. We are sure that it will help us capture a reasonable share of the market in the coming years. Our EBITDA has shown a growth of 9.71% in comparison to the same quarter last year, but the EBITDA margin has declined on account of an increase in Advertisement Expenses. In the current quarter, we have spent around Rs.35 crore on Advertisement whereas it was Rs.14.65 crore in the same quarter last year. This expenditure was mainly in Sponsoring IPL 2022 (nonrecurring), the Launch of our new TVC for Dollar Woman, and the campaign for the completion of 50 glorious years of Dollar Industries Ltd.
We are sure that this promotional expenditure will maximize our reach and help us in targeting a newer consumer base, giving us the benefit throughout the year. Further our Working capital cycle stands at 172 days Inventory stood at around 122 days mainly on account of an increase in the procurement of winter products as the demand for winter products will begin from Second Quarter. Further our efforts towards introducing Channel Financing Scheme have shown some results thereby decreasing Debtors’ days from 141days in Q1FY22 to 98 days in Q1FY23 as of 30th June, 2022. With this positive approach, we will continue to be focused on our vision of 2025.”