Dollar Industries Ltd. · NSE:DOLLAR
Dollar Industries — Q2 FY25 Earnings Presentation
48 slides from Dollar Industries's earnings presentation, Nov 11, 2024
Slide 1: Cover letter to stock exchanges
Date: 11th November, 2024 The Secretary, The Secretary, National Stock Exchange of India Ltd., BSE Limited Exchange Plazza, 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,
Slide 2: Q2 & H1 FY25 Earnings Presentation
THREADMARK OF DOLLAR INDUSTRIES LIMITED Q2 & H1 FY25 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 Q2 & H1 FY25 Highlights 12-17 3 Operational Highlights 18-21 4 Growth Drivers 22-31 5 ESG 32-38 6 Financial Summary 39-42 7 Annexure 45-47
Slide 6: About Dollar Industries Limited
ABOUT DOLLAR INDUSTRIES LIMITED Q2 & H1 FY25 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 2024-25 • Roped in actor Mahesh Babu as the Brand Ambassador for Dollar Bigboss for South India • 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’
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 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 09
Slide 11: Brand Architecture Breakup
BRAND ARCHITECTURE BREAKUP PREMIUM MID-PREMIUM ECONOMY Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 10
Slide 12: Management Commentary
MANAGEMENT COMMENTARY “We are pleased to announce that our Revenue from Operations rose by 33.9% QoQ and 8.3% YoY, reaching ₹4,469 Mn for Q2 FY25, and increased by 5.4% YoY reaching ₹7,806 Mn in H1 FY25. Gross Profit increased by 25.9% QoQ and 11.3% YoY, reaching ₹1,497 Mn in Q2 FY25. It rose by 11.
Slide 13: Q2 & H1 FY25 Highlights
Q2 & H1 FY25 HIGHLIGHTS Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 12
Slide 14: Key Highlights
KEY HIGHLIGHTS Gross Profit increased by Increase in Operating EBITDA Operating Income increased by 11.3% QoQ &25.9% YoY; by 37.4% QoQ & 17.2% YoY; PAT margin stood at 5.9% in No. of EBOs 17 as on Sep’24 33.9% QoQ & 8.3% YoY to ₹ Margins stood at 33.5% in Q2 Margins stood at 10.9% in Q2 Q2 FY25 4,46
Slide 15: Financial Highlights (1/2)
FINANCIAL HIGHLIGHTS (1/2) ₹ Million Profit After Cash Particulars Operating Income Gross Profit Operating EBITDA Profit Before Tax Tax Profit1 Q2 FY25 4,469 1,497 489 342 265 355 Growth (YOY) 8.3% 11.3% 17.2% 2.4% 6.6% 21.9% Growth (QOQ) 33.9% 25.9% 37.4% 59.0% 73.2% 49.7% Margin2(%) 33.5% 10.9% 7.
Slide 16: Financial Highlights (2/2)
FINANCIAL HIGHLIGHTS (2/2) ₹ Million ROE(%)1 ROCE(%)1 Particulars 31-Mar-24 30-June-24 30-Sep-24 12.1% 10.5% 14.3% 12.1% 7.8% 10.1% Net Worth 7,838 8,000 8,095 Long Term Borrowings 300 422 316 Mar'24 Jun'24 Sep'24 Mar'24 Jun'24 Sep'24 Short Term Borrowings 2,760 2,395 3,238 Net Debt 3,040 2,815 3,53
Slide 17: Revenue Contribution (1/2)
REVENUE CONTRIBUTION (1/2) BRAND WISE TRADE CHANNEL WISE 40% 38% 3% H1 FY25 5% 3% H1 FY25 6.0% 89% 5% 9% 2% 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 #Moder
Slide 18: Revenue Contribution (2/2)
REVENUE CONTRIBUTION (2/2) REGION WISE GENDER WISE CATEGORY WISE 5% 0.1% 21% 19% 15% 48% H1 FY25 H1 FY25 H1 FY25 23% 80% 81% 8% North South East West Men Women Kids Outerwear Innerwear Accessories 17 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 17
Slide 19: Operational Highlights
Q2 & H1 FY25 OPERATIONAL HIGHLIGHTS Q2 & H1 FY25 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 17 14 15 20+ Multi-platform E-retail presence Modern trade & E-commerce Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 20
Slide 22: Penetrating Countries Across the World
PENETRATING COUNTRIES ACROSS THE WORLD Export revenue in H1 FY 25 15 Countries | 255 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.
Slide 23: Growth Drivers
Q2 & H1 FY25 GROWTH DRIVERS 22 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q2 & H1 FY25 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 Q2 & H1 FY25 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 9.0% 11.0% Share of women’s Share of women’s brand revenue in brand revenue in H1 FY25 FY26 What are we doing? • 6 categories created – MAN, WOMAN, JUNIOR, ALWAYS, THERMALS, PROTECT • Akshay Kum
Slide 26: Integrating Digitalization to Increase Efficiencies
INTEGRATING DIGITALIZATION TO INCREASE EFFICIENCIES Why? What are we doing? Outcomes • Transparent engagements with To integrate digitalization • Integrating Auto Replenishment System (ARS) and retailers in our daily operations to Distributor Management Systems (DMS) for our Lakshya increase efficienc
Slide 27: Project Lakshya Updates (1/2)
PROJECT LAKSHYA UPDATES (1/2) 307 Distributors 17 Distributors 30.6% Contribution % of Lakshya as on Sep’24 added in H1 Distributors in H1 FY25 FY25 What are we doing? • Mapping retail network in area allocated to distributor • Enrolling retailers into Project Lakshya • Execute Retailer Bonding Prog
Slide 28: Project Lakshya Updates (2/2)
PROJECT LAKSHYA UPDATES (2/2) VALUE CONTRIBUTION VOLUME CONTRIBUTION 18% 19% 26% 30% 26% 31% FY23 FY24 H1 FY25 FY23 FY24 H1 FY25 LAKSHYA RETAILERS LAKSHYA DB 15 13 12 11 8 1,20,474 1,50,811 1,60,002 58,557 73,230 74,026 229 290 307 1 DOLLAR RETAILER BONDING PROGRAM FY23 FY24 H1 FY25 FY23 FY24 H1 FY2
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 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 FO
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 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 33: ESG at Dollar Industries
ESG AT DOLLAR INDUSTRIES 3 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 2 32
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 8 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 two 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 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 37
Slide 39: Supported by an Experienced Team
SUPPORTED BY AN EXPERIENCED TEAM 38 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 38
Slide 40: Financial Summary
Q2 & H1 FY25 FINANCIAL SUMMARY 39 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 39
Slide 41: Summary Profit & Loss
SUMMARY PROFIT & LOSS ₹ Million Particulars Q2 FY 25 Q2 FY 24 YoY Change Q1 FY 25 QoQ Change H1 FY25 H1 FY24 YoY Change FY24 Operating Income 4,469 4,125 8.3% 3,337 33.9% 7,806 7,408 5.4% 15,723 Gross Profit 1,497 1,345 11.3% 1,189 25.9% 2,685 2,406 11.6% 5,059 Gross Profit (%) 33.5% 32.6% 90 bps
Slide 42: Focus on Shareholder Value Creation
FOCUS ON SHAREHOLDER VALUE CREATION DIVIDEND PAYOUT NET DEBT AND NET DEBT/OPERATING EBITDA 12% 32% 2.09 1.92 16% 1.40 1.94 0.93 ₹ Million 16% 1.64 ₹ Million 17% 19% 0.85 3,040 1,904 2,024 1,171 2,055 1,614 3,531 116 136 170 170 170 96 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY
Slide 43: Shareholding Summary
SHAREHOLDING SUMMARY 0.7% 72.2% Share Information Mutual Funds, AIFs and Others Promoter & Promoter Group As on Sep 2024 Financial Institutions NSE Ticker DOLLAR BSE Ticker DOLLAR 2.0% Foreign Portfolio Institutions Market Cap (INR Cr) 2,862.18 % Free-float 27.79% 9.7% Bodies Free-float market cap (
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 Q2 & H1 FY25 EARNINGS PRESENTATION | D
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 Q2 & H1 FY25 EARNINGS PRESENTATION | DOLLAR INDUSTRIES LIMITED 44
Slide 46: Annexure
ANNEXURE 45 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation Q2 & H1 FY25 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 (₹ Mn) GROSS MARGIN (₹ Mn & % MARGIN) OPERATING EBITDA (₹ Mn & % MARGIN) 6000.0 36.7% 32.2% 2,500 40.0% 16.4% 18.0% 34.4% 34.2% 34.4% 29.6% 35.0% 16.0% 5000.0 2,000 14.0% 30.0% 4000.0 10.8% 13.3% 10.1% 10.8% 12.0% 25.0% 1,500 10.0% 3000.0 20.0% 7.0% 8.0% 1,0