Slide 1: Exchange cover letter for investor presentation
Date: 14th March, 2024 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block ‘G’ Phiroze Jeejeebhoy Towers Bandra- Kurla Complex, Bandra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Symbol - DOLLAR Scrip Code - 541403 Dear Sir / Madam, Reg:
Slide 2: Threadmark of Dollar Industries Q3 & 9M FY24 Earnings Presentation
THREADMARK OF DOLLAR INDUSTRIES LIMITED Q3 & 9M 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 Quarterly Highlights 12-17 3 Operational Highlights 18-21 4 Growth Drivers 22-31 5 ESG 32-38 6 Financial Summary 39-42 7 Annexure 45-48
Slide 6: About Dollar Industries Limited
ABOUT DOLLAR INDUSTRIES LIMITED Q3 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. ~210 million 15% 2000+ 2300+ 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 Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 09
Slide 11: Brand Architecture Breakup
BRAND ARCHITECTURE BREAKUP PREMIUM MID-PREMIUM ECONOMY Q3 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 in the quarter gone by. Operating income increased by 16.2% year-over-year (YoY) reaching ₹3,316 million in Q3 FY24. Additionally, the company achieved a notable volume growth of 30.4% YoY. Gross profit
Slide 13: Quarterly Highlights
Q3 FY24 QUARTERLY HIGHLIGHTS Q3 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 375 margin by 304 bps YoY to 9.8% Increase in PAT margin by 262 by 16.2% YoY to INR 3,316 Mn 30.4% YoY in Q3 FY24 bps YoY to 33.9% in Q3 FY24 in Q3 FY24 bps YoY to 5.3% in Q3
Slide 15: Quarterly Highlights (1/2)
QUARTERLY HIGHLIGHTS (1/2) ₹ Million Operating Operating Profit After Cash Particulars Gross Profit Profit Before Tax Income EBITDA Tax Profit1 Q3 FY24 3,316 1,123 326 227 177 239 Growth (YOY) 16.2% 30.7% 68.1% 122.3% 128.9% 90.8% Growth (QOQ) (19.6%) (16.5%) (21.8%) (32.1%) (28.8%) (18.0%) Margin2(
Slide 16: Quarterly Highlights (2/2)
QUARTERLY HIGHLIGHTS (2/2) ₹ Million ROE(%)2 ROCE(%)2 Particulars 31-Mar-23 30-Sep-23 30-Dec-23 13.4% 12.4% 10.9% 10.4% 11.5% 10.1% 9.7% Net Worth 7,088 7,323 7,500 7.6% Long Term Borrowings 1 1 1 Short Term Borrowings 1,615 2,098 2,627 Net Debt 1,614 2,096 2,606 Dec'22 Mar'23 Sep'23 Dec'23 Dec'22 M
Slide 17: Revenue Contribution (1/2)
REVENUE CONTRIBUTION (1/2) BRAND WISE TRADE CHANNEL WISE 39% 38% 1% 6% Q3 FY24 5% Q3 FY24 11% 88% 4% 8% 0.5% 0.03% 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 18: Revenue Contribution (2/2)
REVENUE CONTRIBUTION (2/2) REGION WISE GENDER WISE CATEGORY WISE 3% 23% 19% 14% 44% Q3 FY24 Q3 FY24 Q3 FY24 23% 83% 81% 10% North South East West Men Women Kids Outerwear Innerwear 17 Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 17
Slide 19: Operational Highlights
Q3 FY24 OPERATIONAL HIGHLIGHTS Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 18
Slide 20: 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 21: 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 18 14 15 20+ Multi-platform E-retail presence Modern trade Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 20
Slide 22: Penetrating Countries Across the World
PENETRATING COUNTRIES ACROSS THE WORLD Export revenue in Q3’FY24 15 Countries | 154 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. N
Slide 23: Growth Drivers
Q3 FY24 GROWTH DRIVERS 22 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 22
Slide 24: 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 Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 23
Slide 25: Changing the Brand Architecture
CHANGING THE BRAND ARCHITECTURE Why? To change the perception that Dollar is just a men’s innerwear brand 9.3% 11.0% Share of women’s Share of women’s brand revenue in brand revenue in FY23 FY26 What are we doing? • 6 categories created – MAN, WOMAN, JUNIOR, ALWAYS, THERMALS, PROTECT • Akshay Kumar
Slide 26: 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 27: Project Lakshya Updates (1/2)
PROJECT LAKSHYA UPDATES (1/2) 280 Distributors 9 Distributors 26.5% Contribution % of Lakshya added until added in Distributors Q3 FY24 Q3 FY24 in 9M FY24 What are we doing? • Mapping retail network in area allocated to distributor • Enrolling retailers into Project Lakshya • Execute Retailer Bondin
Slide 28: Project Lakshya Updates (2/2)
PROJECT LAKSHYA UPDATES (2/2) VALUE CONTRIBUTION VOLUME CONTRIBUTION 18% 27% 19% 27% 8% 8% FY22 FY23 9M FY24 FY22 FY23 9M FY24 LAKSHYA RETAILERS LAKSHYA DB 12 11 68,157 9 30,604 1,20,474 1,46,398 58,557 68,282 142 229 280 DOLLAR RETAILER BONDING PROGRAM FY22 FY23 9M FY24 FY22 FY23 9M FY24 Enrolled A
Slide 29: Pursuing Growth Through EBO
PURSUING GROWTH 125 THROUGH EBO Targeted EBOs by 2026 We successfully forayed into the exclusive brand outlet (EBO) segment Launched 18 EBOs, four each in Delhi & Punjab, two each in Haryana, Madhya Pradesh & Maharashtra, one each in Rajasthan, Gujarat, Uttar Pradesh & Odisha. EBO set up under the F
Slide 30: 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 31: 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 32: Resulting in Transformational Changes
RESULTING IN TRANSFORMATIONAL CHANGES • High Margin Product PERCEIVED AS A BRAND FOR ALL contribution to increase from 27% in FY23 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 33: ESG at Dollar Industries
ESG AT DOLLAR INDUSTRIES 3 Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 2 33
Slide 34: 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 35: 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 36: 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 37: 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 one Promoters possess 75% members of the Woman Audit Committee consist >3 decades of of Independen
Slide 38: Guided by Experienced Directors
GUIDED BY EXPERIENCED DIRECTORS 37 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 37
Slide 39: Supported by an Experienced Team
SUPPORTED BY AN EXPERIENCED TEAM 38 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 38
Slide 40: Financial Summary
Q3 FY24 FINANCIAL SUMMARY 39 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 39
Slide 41: Quarterly Profit & Loss
QUARTERLY PROFIT & LOSS ₹ Million Particulars Q3 FY 24 Q3 FY 23 YoY Change Q2 FY 24 QoQ Change 9M FY 24 9M FY 23 YoY Change FY 23 Operating Income 3,316 2,853 16.2% 4,125 (19.6%) 10,723 9,875 8.6% 13,938 Gross Profit 1,123 859 30.7% 1,346 (16.5%) 3,530 3,133 12.7% 4,130 Gross Profit (%) 33.9% 30.
Slide 42: Focus on Shareholder Value Creation
FOCUS ON SHAREHOLDER VALUE CREATION DIVIDEND PAYOUT 32% NET DEBT AND NET DEBT/OPERATING EBITDA 12% 1.93 0.93 16% 1.40 1.94 16% 1.64 17% ₹ Million ₹ Million 0.85 1,904 2,024 1,171 2,055 1,614 2,606 116 136 170 170 96 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 9M FY24* Dividend including Divide
Slide 43: Shareholding Summary
SHAREHOLDING SUMMARY 0.6% 73.1% Share Information Mutual Funds, AIFs and Others Promoter & Promoter Group As on December 2023 Financial Institutions NSE Ticker DOLLAR BSE Ticker DOLLAR 0.5% Foreign Portfolio Institutions Market Cap (INR Cr) 2,626.52 % Free-float 26.91% 9.5% Bodies Free-float market
Slide 44: 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 Q3 FY24 EARNINGS PRESENTATION | DOLLAR
Slide 45: 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 44 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 44
Slide 46: Annexure
ANNEXURE 45 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q3 FY24 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 45
Slide 47: 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 48: Performance Track Record
PERFORMANCE TRACK RECORD OPERATING INCOME (INR Mn) GROSS MARGIN (INR Mn & % MARGIN) OPERATING EBITDA (INR Mn & % MARGIN) 5000.0 37.3% 36.7% 34.2% 2,500 40.0% 16.4% 18.0% 34.4% 29.6% 32.9% 4500.0 35.0% 16.0% 2,000 13.2% 13.3% 4000.0 14.0% 30.0% 3500.0 12.0% 3000.0 25.0% 1,500 2500.0 20.0% 10.8% 7.0%
Slide 49: 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