DOMS Industries share rises 3% after September quarter profit zooms 43% YoY

DOMS Industries share price: Shares of DOMS Industries rose up to 2.57 per cent to hit an intraday high of Rs 2,842 per share on Monday, November 11, 2024. 

 

The uptick in DOMS Industries’ share price came after the company posted a strong performance in the September quarter of financial year 2025 (Q2FY25).

 

The company’s consolidated profit after tax (PAT) climbed 42.8 per cent year-on-year (Y-o-Y) to Rs 53.7 crore in the September quarter of FY25, from Rs 37.6 crore in the September quarter of FY24. 

 

DOMS Industries’ revenue from operations, or topline, rose 19.7 per cent annually to Rs 457.8 crore in Q2FY25, from Rs 382.4 crore in Q2FY24. 

 

At the operational level, earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, zoomed 31.7 per cent year-on-year (Y-o-Y) to Rs 85.9 crore in Q2FY25, from Rs 65.2 crore in Q2FY24. 

 

Consequently, Ebitda margin expanded 170 basis points annually to 18.8 per cent in the September quarter of financial year 2025 (Q2FY25), from 17.1 per cent in the September quarter of financial year 2024 (Q2FY24).

 

Santosh Raveshia, Managing Director, DOMS Industries Limited 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 the 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 an 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 per cent of our total sales.” 

 

Furthermore, during the quarter under review, the company Increased capacity for mathematical instrument boxes by 20 per cent.

 

DOMS Industries’ is also underway to increase capacity utilisation of third pen plant to maximum capacity of 1 million pens/ day.

 

In addition to capacity expansion, the company has rolled out new products like Highlighters and single use Marker Pens. A new stock keeping unit (SKU) has been introduced across almost all product categories including Ball Point Pens, Adhesives, Kits & Combination Packs, Scholastic Stationery, Scholastic Art and Fine Art.

 

“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 the 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,” Raveshia added.

 

DOMS Industries Limited (DOMS), established in 1976, is a prominent Indian company that designs, develops, manufactures, and sells a wide range of stationery and art products. Its extensive product line includes wooden pencils, colour and polymer pencils, mathematical and drawing instruments, wax crayons, and oil pastels. Operating under its flagship brand, DOMS, as well as other brands like C3, Amariz, and FixyFix, the company serves customers worldwide through a robust multi-channel distribution network spanning over 40 countries across the Americas, Africa, Asia Pacific, Europe, and the Middle East.

 

As India's second-largest stationery brand by volume, DOMS holds nearly 30% of the market share in its core products. Headquartered in Valsad, Gujarat, DOMS has built a significant market presence, bolstered by a strategic partnership with the Italian FILA Group to distribute and market its products in South Asia. The company’s legacy dates back to its founding by Late Shri Rasiklal Amritlal Raveshia and Late Shri Mansukhlal Jamnadas Rajani, and it has continued to grow and innovate since its incorporation in 2006.

 

The market capitalisation of DOMS Industries is Rs 17,112.28 crore , according to BSE. The company falls under the BSE SmallCap category. 

 

At 12:20 PM, DOMS Industries shares were trading 1.66 per cent higher at Rs 2,816.70 per share. In comparison, BSE was trading 0.38 per cent higher at 79,787.51 levels.