Dollar Industries Ltd. · NSE:DOLLAR
Dollar Industries — Q4 FY24 Earnings Presentation
52 slides from Dollar Industries's earnings presentation, May 21, 2024
Slide 1: Cover letter to stock exchanges on investor presentation
Date: 21st May, 2024 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block ‘G’ PhirozeJeejeebhoy Towers Bandra- Kurla Complex, Bandra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Symbol - DOLLAR Scrip Code - 541403 Dear Sir / Madam, Reg: In
Slide 2: Q4 FY24 & FY24 Earnings Presentation
THREADMARK OF DOLLAR INDUSTRIES LIMITED Q4 FY24 & FY24 Earnings Presentation
Slide 3: Safe-Harbour Statement
SAFE-HARBOUR STATEMENT This presentation may contain certain forward-looking statements relating to Dollar Industries Limited and its future business, development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of the Company, its
Slide 4: The Warp and Weft of Memories and Learnings
THE WARP AND WEFT OF MEMORIES AND LEARNINGS Over a glittering function attended by the city glitterati, the Biography of Shri Din Dayal Gupta, Chairman Emeritus, Dollar Industries Limited, was launched amidst much fanfare. The book was launched by Shri Acharya Devrat, Hon’ble Governor of Gujarat. ‘A
Slide 5: Agenda
AGENDA 1 About Dollar Industries 05-11 2 Q4 & FY24 Highlights 12-20 3 Operational Highlights 21-24 4 Growth Drivers 25-34 5 ESG 35-41 6 Financial Summary 42-44 7 Annexure 48-51
Slide 6: About Dollar Industries Limited
ABOUT DOLLAR INDUSTRIES LIMITED Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 05
Slide 7: A Leading Player in Branded Outerwear and Innerwear
A LEADING PLAYER IN BRANDED OUTERWEAR AND INNERWEAR Established in 1972, we have been able to solidify our presence as one of the leading players in the Indian hosiery space. ~250 million 15% 2000+ 2100+ Garment manufacturing Market share in the Products across all Total employees capacity (pieces)
Slide 8: Mapping Our Progress Over 50 Years
MAPPING OUR PROGRESS OVER 50 YEARS • Revamped our brand identity by introducing a new brand logo and architecture • Launched our new TVCs for men’s and women’s sections 2022-23 • Opened a total of 14 EBO’s 2017-18 • Launched Rainwear series Started our journey • Shares were listed under Dollar Prote
Slide 9: Dollar Portfolio (1/2)
DOLLAR PORTFOLIO (1/2) Missy | Athleisure Champion Big Boss | J-Class | Athleisure Leg Wears, Casual Wear, T-shirts, Bermudas, Brassiere, Camisoles, Trousers, Socks Vests, Briefs, Trunks, Gym Panties, Socks, Kurti Vests, Socks, Tank Tops, Crew Necks, Polos, Henley, Bermudas, Capri, Track Pants, Jogg
Slide 10: Dollar Portfolio (2/2)
DOLLAR PORTFOLIO (2/2) Innerwear & Athleisure Activewear Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 09
Slide 11: Brand Architecture Breakup
BRAND ARCHITECTURE BREAKUP PREMIUM MID-PREMIUM ECONOMY Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 10
Slide 12: Management Commentary
MANAGEMENT COMMENTARY “We are happy to announce that the company achieved strong all-round growth both in the fourth quarter and in full year FY24. In Q4 FY24, the company recorded its highest-ever quarterly operating income of ₹5,000 Mn, marking a 23.0% year-over-year increase. For the full year, o
Slide 13: Q4 FY24 & FY24 Highlights
Q4 FY24 & FY24 HIGHLIGHTS Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 12
Slide 14: Key Highlights
KEY HIGHLIGHTS Operating Income increased Increase in Operating EBITDA Total volume saw a growth of Increase in GP margin by 609 margin by 865 bps YoY to Increase in PAT margin by 646 by 23.0% YoY to ₹ 5,000 Mn in 17.6% YoY in Q4 FY24 & 21.4% bps YoY to 30.6% in Q4 FY24 & 11.4% in Q4 FY24 & by 304 b
Slide 15: Financial Highlights (1/3)
FINANCIAL HIGHLIGHTS (1/3) ₹ Million Operating Operating Profit After Cash Particulars Gross Profit Profit Before Tax Income EBITDA Tax Profit1 Q4 FY24 5,000 1,530 572 463 331 397 Growth (YOY) 23.0% 53.6% 405.9% 2274.7% 5911.8% 725.8% Growth (QOQ) 50.8% 36.3% 75.2% 104.0% 86.9% 66.4% Margin2(%) 30.6
Slide 16: Financial Highlights (2/3)
FINANCIAL HIGHLIGHTS (2/3) ₹ Million Operating Operating Profit After Cash Particulars Gross Profit Profit Before Tax Income EBITDA Tax Profit1 FY24 15,723 5,059 1,586 1,217 902 1,115 Growth (YOY) 12.8% 22.6% 61.5% 85.5% 71.7% 58.8% Margin2(%) 32.2% 10.1% 7.7% 5.7% Margin –YoY 256 bps 304 bps 303 bp
Slide 17: Financial Highlights (3/3)
FINANCIAL HIGHLIGHTS (3/3) ₹ Million ROE(%)2 ROCE(%)2 Particulars 31-Mar-23 31-Dec-23 31-Mar-24 12.1% 10.5% 14.3% Net Worth 7,088 7,500 7,838 12.4% 7.6% 9.7% Long Term Borrowings 1 1 300 Short Term Borrowings 1,615 2,627 2,760 Net Debt 1,614 2,606 3,040 Mar'23 Dec'23 Mar'24 Mar'23 Dec'23 Mar'24 Net
Slide 18: Revenue Contribution (1/4)
REVENUE CONTRIBUTION (1/4) BRAND WISE TRADE CHANNEL WISE 46% 39% 0.5% Q4 FY24 2% 4% Q4 FY24 94% 2% 5% 8% 0.2% 0.3% Dollar Dollar Dollar Dollar Dollar Dollar Force Always Man Woman Junior Thermals Protect NXT* Domestic Modern Trade # E-commerce Export *Force Gowear and Pepe are part of Force NXT #Mod
Slide 19: Revenue Contribution (2/4)
REVENUE CONTRIBUTION (2/4) BRAND WISE TRADE CHANNEL WISE 42% 38% 1% 3% 4% FY24 FY24 92% 1% 4% 9% 5% 0.1% Dollar Dollar Dollar Dollar Dollar Dollar Force Always Man Woman Junior Thermals Protect NXT* Domestic Modern Trade # E-commerce Export *Force Gowear and Pepe are part of Force NXT #Modern Trade
Slide 20: Revenue Contribution (3/4)
REVENUE CONTRIBUTION (3/4) REGION WISE GENDER WISE CATEGORY WISE 4% 23% 20% 15% 46% Q4 FY24 Q4 FY24 Q4 FY24 24% 81% 80% 7% North South East West Men Women Kids Outerwear Innerwear 19 Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 19
Slide 21: Revenue Contribution (4/4)
REVENUE CONTRIBUTION (4/4) REGION WISE GENDER WISE CATEGORY WISE 4% 23% 20% 15% 46% FY24 FY24 FY24 23% 81% 80% 8% North South East West Men Women Kids Outerwear Innerwear 20 Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 20
Slide 22: Operational Highlights
Q4 FY24 & FY24 OPERATIONAL HIGHLIGHTS Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 21
Slide 23: Edging Past Competition with Integrated Value Chain
EDGING PAST COMPETITION WITH INTEGRATED VALUE CHAIN 2.5 Million 400 tonnes 400 tonnes Metres per month Captive elastic Average monthly output of Monthly installed capacity production capacity Ne 20s to 40s single yarn of bleaching and dyeing 0.3 Million 300 tonnes Manufacturing pieces per day Captiv
Slide 24: Widening Footprint to Cater to Larger Population
WIDENING FOOTPRINT TO CATER TO LARGER POPULATION Sales Team Dealer network Retail reach 500+ 1500+ 1,45,000+ EBOs Branches Depots Warehouses 17 14 15 20+ Multi-platform E-retail presence Modern trade Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 23
Slide 25: Penetrating Countries Across the World
PENETRATING COUNTRIES ACROSS THE WORLD Export revenue in FY 24 15 Countries | 656 Million Export revenue in FY 26 30 Countries | 11.0% Where we export 1. Afghanistan 5. Kuwait 9. Nigeria 13. Somalia 2. Bahrain 6. Mozambique 10. Oman 14. Tanzania 3. Georgia 7. Myanmar 11. Qatar 15. UAE 4. Iraq 8. Nep
Slide 26: Growth Drivers
Q4 FY24 & FY24 GROWTH DRIVERS 25 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 25
Slide 27: Growth Drivers: Strategic Priorities
GROWTH DRIVERS Strategic priorities Leveraging Investing in Growth through new brand overhaul digitisation Project Lakshya Growth Partnering Diversifying portfolio through EBOs for growth in adjacent segments Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 26
Slide 28: Changing the Brand Architecture
CHANGING THE BRAND ARCHITECTURE Why? To change the perception that Dollar is just a men’s innerwear brand 8.7% 11.0% Share of women’s Share of women’s brand revenue in brand revenue in FY24 FY26 What are we doing? • 6 categories created – MAN, WOMAN, JUNIOR, ALWAYS, THERMALS, PROTECT • Akshay Kumar
Slide 29: Integrating Digitalization to Increase Efficiencies
INTEGRATING DIGITALIZATION TO INCREASE EFFICIENCIES Why? What are we doing? Outcomes To integrate digitalization • Integrating Auto Replenishment System (ARS) and • Transparent engagements with in our daily operations to Distributor Management Systems (DMS) for our Lakshya retailers increase efficienc
Slide 30: Project Lakshya Updates (1/2)
PROJECT LAKSHYA UPDATES (1/2) 290 Distributors 10 Distributors 26.3% Contribution % of Lakshya as on Mar’24 added in Distributors Q4 FY24 in FY24 What are we doing? • Mapping retail network in area allocated to distributor • Enrolling retailers into Project Lakshya • Execute Retailer Bonding Program
Slide 31: Project Lakshya Updates (2/2)
PROJECT LAKSHYA UPDATES (2/2) VALUE CONTRIBUTION VOLUME CONTRIBUTION 18% 26% 19% 26% 8% 8% FY22 FY23 FY24 FY22 FY23 FY24 LAKSHYA RETAILERS LAKSHYA DB 12 11 68,157 9 30,604 1,20,474 1,50,811 58,557 73,230 142 229 290 DOLLAR RETAILER BONDING PROGRAM FY22 FY23 FY24 FY22 FY23 FY24 Enrolled Active Lakshy
Slide 32: Pursuing Growth Through EBO
PURSUING GROWTH 125 THROUGH EBO Targeted EBOs by 2026 We successfully forayed into the exclusive brand outlet (EBO) segment Launched 17 EBOs, four each in Delhi & Punjab, two each in Madhya Pradesh & Maharashtra, one each in Rajasthan, Gujarat, Uttar Pradesh, Haryana & Odisha. EBO set up under the F
Slide 33: Strategic Partnership for Sustainable Growth
STRATEGIC PARTNERSHIP FOR SUSTAINABLE GROWTH Joint Venture with G.O.A.T • We entered a 51-49 JV with G.O.A.T Brands Lab Pte for Pepe Jeans Inner fashion Pvt. Ltd. • G.O.A.T Brands Lab Pte acquired 50% stake of Pepe and additional 2% non-voting equity • Multi-brand distributor for men, women and kids
Slide 34: Diversifying Product Portfolio in Adjacent Segment
DIVERSIFYING PRODUCT PORTFOLIO IN ADJACENT SEGMENT ‘Dollar Protect’, the ultimate rainwear line that combines elegance with unbeatable protection! A wide range of raincoats for men, women and kids, made from premium fabric with additional leak-proof stitching of comprehensive waterproofing. ‘Dollar
Slide 35: Resulting in Transformational Changes
RESULTING IN TRANSFORMATIONAL CHANGES • High Margin Product PERCEIVED AS A BRAND FOR ALL contribution to increase from 27% in FY24 to 33% • Rs. 20,000 Mn revenue by FY26 by FY26 • Active retailers per distributors 150-200 • Replenishment-based by FY26 sales model (ARS) • Share of revenue • Revenue l
Slide 36: ESG at Dollar Industries
ESG AT DOLLAR INDUSTRIES 3 Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 5 35
Slide 37: Contributing Towards a Greener Future
CONTRIBUTING TOWARDS A GREENER FUTURE ENVIRONMENT SOLAR POWER WIND POWER ZERO LIQUID DISCHARGE 100 LAKH 70 LAKH 13.5 UNITS/YEAR UNITS TONNES Power generation capacity of Total power generated Daily production capacity of the solar power plant annually our effluent treatment plant in Tirupur 6 MW 4.95
Slide 38: Empowering Our Biggest Asset
EMPOWERING OUR BIGGEST ASSET SOCIAL EMPLOYEE ENGAGEMENT Engaging with our employees SKILL DEVELOPMENT Conducting regular WOMEN EMPOWERMENT Working towards reducing DIVERSITY AND INCLUSION Implementing on a daily basis to address on-the-job and off-the-job the gender gap and creating anti-harassment a
Slide 39: Being a Responsible Corporate
BEING A RESPONSIBLE CORPORATE SOCIAL Donated ~Rs 147 lakhs to Donated ~Rs 25 lakhs to Installed water huts and Donated sanitary napkins schools in UP, Rajasthan, cutting edge Cancer Care kiosks across the states of to the underprivileged Chhattisgarh and Odisha, Centre in Tirupur for Delhi NCR, Odis
Slide 40: Strengths That Drive Governance
STRENGTHS THAT DRIVE GOVERNANCE All members of the Independent Nomination & Diverse and Directors experienced account for Remuneration Board of Directors Committee are 50% Independent Directors We have two Promoters possess 75% members of the Woman Audit Committee consist >3 decades of of Independen
Slide 41: Guided by Experienced Directors
GUIDED BY EXPERIENCED DIRECTORS 40 Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 40
Slide 42: Supported by an Experienced Team
SUPPORTED BY AN EXPERIENCED TEAM 41 Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 41
Slide 43: Financial Summary
Q4 FY24 & FY24 FINANCIAL SUMMARY 42 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 42
Slide 44: Summary Profit & Loss
SUMMARY PROFIT & LOSS ₹ Million Particulars Q4 FY 24 Q4 FY 23 YoY Change Q3 FY 24 QoQ Change FY 24 FY 23 YoY Change Operating Income 5,000 4,064 23.0% 3,316 50.8% 15,723 13,938 12.8% Gross Profit 1,530 997 53.6% 1,123 36.3% 5,059 4,128 22.6% Gross Profit (%) 30.6% 24.5% 609 bps 33.9% (324 bps) 3
Slide 45: Focus on Shareholder Value Creation
FOCUS ON SHAREHOLDER VALUE CREATION DIVIDEND PAYOUT 32% NET DEBT AND NET DEBT/OPERATING EBITDA 12% 19% 1.92 16% 16% 1.94 1.40 0.93 1.64 17% ₹ Million ₹ Million 0.85 1,904 2,024 1,171 2,055 1,614 3,040 136 116 170 170 170 96 FY19 FY20 FY21 FY22 FY23 FY24* FY19 FY20 FY21 FY22 FY23 FY24 Dividend includ
Slide 46: Shareholding Summary
SHAREHOLDING SUMMARY 0.6% 72.2% Share Information Mutual Funds, AIFs and Others Promoter & Promoter Group As on March 2024 Financial Institutions NSE Ticker DOLLAR BSE Ticker DOLLAR 2.1% Foreign Portfolio Institutions Market Cap (INR Cr) 2,919.75 % Free-float 27.79% 9.2% Bodies Free-float market cap
Slide 47: Why Dollar?
WHY DOLLAR ? Wide reach Integrated operations Channel expansion & Omni Integrated value chain Channel strategy Multi-brand portfolio Favourable financial covering wider user base positioning Increasing share of Continuously strengthening non-male users financials Q4 & FY24 EARNINGS PRESENTATION | DOLL
Slide 48: Thank You
THANK YOU Chief Financial Officer Investor Relations Advisor Ajay Kumar Patodia Sanjeev Sancheti cfo@dollarglobal.in ir@uirtus.in www.dollarglobal.in www.uirtus.in 47 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 47
Slide 49: Annexure
ANNEXURE 48 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q4 & FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 48
Slide 50: Vision, Mission and Values
VISION, MISSION AND VALUES Our Vision Our Mission Core Values Dollar in everyone’s lives. • To emerge as India’s leading and most-loved • Insights and constant innovation are a way for Dollar. innerwear brand We also add value to the Dollar experience so as to Medium-term vision: We aspire to • To m
Slide 51: Performance Track Record
PERFORMANCE TRACK RECORD OPERATING INCOME (₹ Mn) GROSS MARGIN (₹ Mn & % MARGIN) OPERATING EBITDA (₹ Mn & % MARGIN) 6000.0 37.3% 36.7% 34.2% 2,500 40.0% 16.4% 18.0% 34.4% 29.6% 32.2% 35.0% 16.0% 5000.0 2,000 13.2% 13.3% 14.0% 30.0% 10.1% 4000.0 12.0% 25.0% 1,500 10.0% 3000.0 20.0% 10.8% 7.0% 8.0% 1,0
Slide 52: Improving Our Capabilities for Higher Profitability
IMPROVING OUR CAPABILITIES FOR HIGHER PROFITABILITY INTEGRATED EXPANSION INCREASE IN WAREHOUSE OF SPINNING SOLAR POWER Investments towards an integrated warehouse in West Bengal CAPACITY CAPACITY Increasing our spinning capacity from 22,000 Increasing our Solar Power Capacity ADVANTAGES: spindles to