Doms Inds gains after Q2 PAT climbs 43% YoY to Rs 51 cr

Doms Industries advanced 2.05% to Rs 2,827.30 after the company reported 42.54% surge in consolidated net profit to Rs 51.33 crore in Q2 FY25 as against 36.01 crore posted in Q2 FY24.

Revenue from operations jumped by 19.71% YoY to Rs 457.77 crore in the quarter ended 30 September 2024.

Profit before tax was at Rs 72.05 crore in the second quarter of FY25, up 42.87% from Rs 50.43 crore posted in the same period a year ago.

EBITDA grew by 31.7% YoY to Rs 85.9 crore during the quarter. EBITDA margin improved to 18.8% in Q2 FY25 as compared to 17.1% recorded in Q2 FY24.

On half year basis, the companys consolidated net profit surged 46.07% YoY to Rs 103.17 crore in H1 FY25 as compared to Rs 70.63 crore recorded in H1 FY24. Revenue from operations increased 18.50% YoY to Rs 902.78 in H1 FY25.

Santosh Raveshia, Managing Director, DOMS Industries said, We continued our resilient performance for Q2FY25 despite a challenging market environment. This growth is largely driven by increase in sales of writing pens, adhesives and kits & combination packs as well as due to positive impact of Uniclan acquisition. We would like to thank our entire team and channel partners whose efforts have helped us achieve this growth in otherwise difficult period with challenging demand conditions in the domestic market as well in the export markets due to growing geopolitical tensions. The growth is also reflective of the strong acceptance and expanding reach of the DOMS Brand and product proposition.

Domestic sales continue to be the main driver of growth which now constitutes 85% of our total sales. Post completion of the festive season, we believe the domestic demand environment shall now see a gradual improvement as we enter the back-to-school season. On the export front, we foresee improvement in business conditions as we have started receiving encouraging feedback from most of customers for our products.

In line with our commitment to long-term growth and value creation, we are now transitioning from being a stationery and art material company to a diversified product company associated with the growing years of kids, children and young adults. The completion of Uniclan acquisition has helped in increasing our targeted addressable market with addition of baby hygiene products. At our recently held annual sales meet, along with new product launches in the stationery and art material business, we also launched the DOMS Wowper branded Baby Diapers. The response from our channel partners has been exciting and we are optimistic about the overall growth strategy in the baby hygiene segment.

Further, we continue to focus on increasing our manufacturing capacities for the stationery and art material business, albeit a brief slowdown during monsoons, with multiple ongoing projects including the construction at the adjoining 44 acres land parcel, which we believe will provide us the platform to capitalise on the untapped market potential.

Building on our well laid out foundation, we're poised for sustained growth guided by our core principles. With effective implementation of our strategic initiatives of product development, capacity enhancement, expanding distribution network and targeted market expansion for the baby hygiene segment, I am confident that we will continue to fuel our growth momentum and ensure a continued upward trajectory.

Doms Industries is primarily engaged in manufacturing, marketing, trading and distribution of school stationery and art materials under the brand names 'DOMS' and 'C3'

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