Doms Inds Q1 PAT jumps 50% YoY to Rs 54 crore

Doms Industries reported consolidated net profit of Rs 51.84 crore in Q1 FY25, marking a growth of 49.78% as against Rs 34.61 crore posted in Q1 FY24.

Revenue from operations grew by 17.29% to Rs 445.01 crore in Q1 FY25 as compared with Rs 379.40 crore recorded in the corresponding quarter previous year.

Profit before tax was at Rs 73.17 crore in first quarter of FY25, up 50.22% from Rs 48.71 crore posted in the same period a year ago.

EBITDA grew 38.9% year on year to Rs 86.4 crore during the quarter. EBITDA margin stood at 19.4% in Q1 FY25 as compared to 16.4% recorded in Q1 FY24.

Santosh Raveshia, Managing Director, DOMS Industries said, "The start to the financial year 2025 has been positive, despite the challenges on account of extreme weather conditions, especially in North India during the quarter ended June 30, 2024. We continue to see momentum in sales growth and improvement in our margin profile reflecting our unwavering commitment to delivering exceptional value to our targeted consumers.

We continue to focus on further enhancing our integration across our robust manufacturing infrastructure and designing capabilities. Along with our manufacturing prowess, we continue to prioritise strengthening our reach in the Indian markets as well as globally with focused distribution network expansion.

In a move to accelerate growth and solidify our position for the future, we continue to pursue inorganic opportunities with a view to widen our targetable addressable market and expanding our presence in the product lines which are associated through the growing year of kids, children and young adults. With a strong foundation laid out and with the guiding principles aimed towards sustainable growth, we are confident that our strategic initiatives in terms of product and capacity expansion and dedication to excellence will continue to propel us forward.

Meanwhile, the companys board has acquired 51% stake in SKIDO Industries. SKIDO is in the process raising additional capital of Rs 1 crore through a rights issue to meet its working capital and capital expenditure requirements. SKIDO has sent the offer documents of the rights issue to its existing shareholders to accept, reject or renounce the offer. The board have decided to accept the offer and approved the further investment of 5,10,000 equity shares of Rs 10 each, in proportion to the companys shareholding in SKIDO.

Further, the companys board has approved an investment of up to Rs 55 crore to acquire 51.77% stake in Uniclan Healthcare by subscribing and purchasing up to 71,16,080 equity shares of Rs 10 each. Further, the board has also approved the execution of share purchase agreement, share subscription agreement and shareholders agreement with Uniclan and its promoters to give effect to the above. The proposed transaction shall be completed on or before 30 September 2024.

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

Shares of Doms Industries declined 2.06% to currently trade at Rs 2,392.20 on the BSE. The scrip hit all time high at Rs 2,545.60 in todays intraday session.

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