Dollar Industries Ltd. · NSE:DOLLAR
Dollar Industries — Q2 FY2022 Earnings Presentation
58 slides from Dollar Industries's earnings presentation, November 2021
Slide 1: Q2FY22 Investor Presentation
NS Q2FY22 Investor Presentation Refer to Disclaimer at end1
Slide 2: Core Topics
CORE TOPICS About Us Annual Financial Highlights 1 - Vision & Mission - Profit & Loss; Ratios - Background; Our Journey - Our Network / Our Strengths - Value Chain & Manufacturing Facilities 5 - Balance Sheet - Working Capital Ratios - Other Key Ratios Brand Portfolio Annual Operational Highlights 2
Slide 3: Vision & Mission
VISION & MISSON Vision Mission Dollar in everyone’s life To emerge as India’s leading and most-loved innerwear brand. MEDIUM TERM VISION To make fashionable yet affordable outerwear and innerwear. We aspire to metamorphize the company into an aspirational brand by offering premium and super prem
Slide 4: Background
BACKGROUND 49 Established by Commissioned a Dollar revamped it’s 1000+ Distributors 1000+ 4MW solar power Brand Identity and Years of Industry Shri Dindayal Gupta plant generating 75 introduced the new Strength of our Experience in 1972 as lakhs power units Brand Architecture 1 Lac+ Retailers Distri
Slide 5: Our Journey
OUR JOURNEY Roped in Salman Khan as brand ambassador of Dollar Club. Started as Bhawani Textiles Dollar begins export to Received National Award in “Best under the leadership of Shri Middle East and Other Brand Category” and “Excelence in Dindayal Gupta Countries Men’s Innerwear by CMAI 1972-73 1994
Slide 6: Journey milestones 2015-2021
• Started an election campaign #UngliUthanaFitHaiBoss • Revamped Brand Identity by introducing a new Brand Logo and Architecture • Started Project Lakshya to increase reach and range in the market • Launched new TVCs for Men & Women section • Received Times Business Award, Kolata for “Best in Men’s
Slide 7: Our Network
OUR NETWORK Domestic Network International Network Ludhiana Delhi Kolkata Tirupur Manufacturing facilities UAE , OMAN, JORDAN, QATAR, KUWAIT, BAHRAIN, YEMEN, IRAQ, NEPAL, Branch Network MYANMAR, NIGERIA, KENYA, BASRA, ALGERIA, UKRAINE Q2FY22 Investor Presentation Disclaimer : Maps are not to scale 7
Slide 8: Our Strengths
OUR STRENGHTS SENSIBLE INVESTMENTS IN MANUFACTURING ASSETS DISTINGUISH ITS PRODUCTS FROM ITS PEERS YOUNG ASSET QUALITY HELPING US TO REAP MULTIPLE BENEFITS AFFORDABLE OPTIMUM HIGH YARN QUICKER PRICES vis-à- LOW LOW ASSET LABOUR THICKNESS OFF-TAKE* vis HIGH REJECTS WASTAGE UTILIZATION OUTPUT# QUALITY
Slide 9: Manufacturing Facilities
M A N U FAC T U R I N G FAC I L I T ES Q2FY22 Investor Presentation 9
Slide 10: Value Chain
VALUE CHAIN Q2FY22 Investor Presentation 10
Slide 11: Manufacturing Capabilities
MANUFACTURING CAPABILITIES SPINNING KNITTING • The Company manufactures 100% cotton combed quality yarn in different count • Dollar’s knitted fabric range includes a wide variety of fabrics such as single ranges. jersey, pique and fleece. • Raw material is sourced from India and abroad. • Knitting m
Slide 12: Dyeing & Bleaching
MANUFACTURING FACILITIES SPINNING KNITTING DYEING & BLEACHING DYEING SALVOS Q2FY22 Investor Presentation 12
Slide 13: Capex Plans
CAPEX PLANS Benefits to be derived from this effort Single point warehouse in West Bengal. Total Operational Efficiencies. Planned FY21 FY22 FY23 Integrated Investments Savings in rental and other overheads w.r.t. multiple warehouses. Warehouse Sharp reduction in wastages, pilferage & damage
Slide 14: Brand Evolution & Brand Portfolio
B R A N D E VO LU T I O N & B R A N D P O RT FO L I O Q2FY22 Investor Presentation 14
Slide 15: Brand Evolution
BRAND EVOLUTION Mr. Dindayal Gupta, the The mnemonic D stands for Dollar hit the airwaves founding Chairman, Dollar, for Dynamism and for with actor Salman Khan started Dollar in a busy the Determination to be a and the identity became corner of Kolkata part of every millennial an instant hit Indian
Slide 16: Our Brands
OUR BRANDS Standalone Brands Q2FY22 Investor Presentation 16
Slide 17: Dollar Man
DOLLAR MAN Q2FY22 Investor Presentation 17
Slide 18: Dollar Woman
DOLLAR WOMAN Q2FY22 Investor Presentation 18
Slide 19: Dollar Junior
DOLLAR JUNIOR Q2FY22 Investor Presentation 19
Slide 20: Dollar Always
DOLLAR ALWAYS Q2FY22 Investor Presentation 20
Slide 21: Dollar Thermals
DOLLAR THERMALS Q2FY22 Investor Presentation 21
Slide 22: First EBO Launched
FIRST EBO LAUNCHED • First EBO inaugurated in October 2021. • EBO setup at Ayodhya, Uttar Pradesh. • EBO setup in FOFO model (Franchisee Owned Franchisee Operated). • Targeting to open 8-10 EBOs in FY22. • Initial EBOs to be launched in Uttar Pradesh and Rajasthan. Q2FY22 Investor Presentation 22
Slide 23: Quarter Performance Highlights
Q UA RT E R P E R FO R M A N C E HIGHLIGHTS Q2FY22 Investor Presentation 23
Slide 24: Quarter Highlights
QUARTER HIGHLIGHTS Revenue EBITDA Net Profit Channel Finance 52% 74% 84% Tied up EBITDA% PAT% 1st 50% EBO Lakshya 15.9% 10.6% Launched DBs Q2FY22 Investor Presentation 24
Slide 25: Key Highlights
KEY HIGHLIGHTS Highest ever Revenue, Channel Financing First EBO inaugurated Project Lakshya Updates EBITDA & PAT In spite of challenges faced in Company has entered into an Company inaugurated its first EBO 1.5 lac estimated outlets mapped Q1FY22, the company has agreement with a large private in
Slide 26: Profit & Loss
PROFIT & LOSS Standalone (Rs lacs) Particulars 2QFY22 1QFY22 2QFY21 Y-O-Y% H1FY22 H1FY21 YoY% Revenues 39,067.45 20,458.34 25,739.44 51.78 59,525.79 41,684.68 42.80 Other Income 33.19 91.40 53.41 -37.86 124.59 70.96 75.58 ~52% Net Income from operations 39,100.64 20,549.74 25,792.85 51.59 59,650.38
Slide 27: Balance Sheet
BALANCE SHEET Standalone (Rs lacs) EQUITY & LIABILITIES H1FY22 H2FY21 ASSETS H1FY22 H2FY21 EQUITY NON-CURRENT ASSETS (a) Equity Share Capital 1,134.32 1,134.32 Property, Plant & Equipment 7,579.76 7,882.15 (b) Other Equity 58,285.23 53,147.13 Capital Work-in-progress 2,574.50 1,466.60 Total Equity 5
Slide 28: Cash Flow Statement
CASH FLOW STATEMENT Standalone (Rs lacs) H1FY22 H2FY21 Operating profit before working capital changes 10,243.35 14,368.96 Adjustments for working capital changes -8,424.09 1,860.82 Income Tax Paid (net) -1,630.08 -2,988.51 Net cash generated/(used in) from Operating Activities 189.18 13,241.28 Cash
Slide 29: Key Half Yearly Ratios
KEY HALF YEARLY RATIOS Return on Equity (%) Return on Capital Employed (ROCE%) 25.00% 35.0% 21.93% 30.0% 30.0% 20.00% 16.08% 25.0% 23.0% 23.0% 15.64% 15.00% 20.0% 10.00% 15.0% 10.0% 5.00% 5.0% 0.00% 0.0% Sep'20 Mar'21 Sep'21 Sep'20 Mar'21 Sep'21 Working Capital (days) Debt : Equity / Interest Covera
Slide 30: Growth Pillars & Project Lakshya Updates
G ROW T H P I L L A RS & P ROJ EC T L A KS H YA U P DAT ES Q2FY22 Investor Presentation 30
Slide 31: Transformational Changes (1/2)
TRANSFORMATIONAL CHANGES (1/2) WHERE WE “WERE” WHERE WE “ARE” WHERE WE “WILL BE” Brand Architecture Kick started the process of consolidating all Integrated 6 warehouses in Kolkata. warehouses into a single warehouse to Integrated warehouse by FY23. Warehousing build operational efficiencies. All La
Slide 32: Transformational Changes (2/2)
TRANSFORMATIONAL CHANGES (2/2) WHERE WE “WERE” WHERE WE “ARE” WHERE WE “WILL BE” Receivables / High receivables with Dealers & Company finalises discussion with a leading All Distributors to be brought Channel Finance Distributors. Private Bank for Channel Financing. under Channel Financing. 150-200
Slide 33: Growth Pillars
GROWTH PILLARS BRAND ARCHITECTURE RESTRUCTURING THE DISTRIBUTION INVESTING IN DIGITIZATION 2010 – Akshay Kumar hired as brand ambassador WHAT ARE WE DOING? • Auto Replenishment Systems (ARS) and • Replacing push model by replenishment model Distributor Management System (DMS) 2020 – Logo redesigned
Slide 34: Project Lakshya Highlights
PROJECT LAKSHYA HIGHLIGHTS 1,52,071 North East, Andhra Outlets Mapped Pradesh, Goa & Bihar Mapping Work in progress 42,451 Total Outlets Enrolled 91 distributors On-boarded Under Lakshya Project 3,117 Pin codes Mapped 6 % of Total sale Contribution from 1,713 Lakshya DB’s for Pin codes H1FY22 Enroll
Slide 35: Mapped vs Enrolled
MAPPED vs ENROLLED 45,000 45% 41% 40,428 41% 40,000 40% 35,000 35% 30,000 30% 27% 25,352 25,000 23,974 25% 22% 21,887 22% 20,000 20% 16,770 15,000 13,285 12% 15% 11,314 10,451 10,000 10% 5,204 5,878 5,000 5% 2,513 1,635 - 0% ROM GUJARAT TELANGANA MUMBAI KARNATAKA RAJASTHAN Mapped Outlets 13,285 23,9
Slide 36: Statewise Lakshya Update
STATEWISE LAKSHYA UPDATE Rest of Maharashtra MUMBAI GUJARAT Outlets Pin code Districts Outlets Pin code Districts Outlets Pin code Districts Total Estimated 52,383 1,118 26 Total Estimated 31,952 369 8 Total Estimated 66,219 1,252 29 Mapped 23,974 380 19 Mapped 21,887 250 5 Mapped 13,285 277 13 Enro
Slide 37: Joint Venture with Pepe Jeans
JOINT VENTURE This partnership requires a capital influx of Rs 200 50-50 joint venture partnership under the name PEPE Jeans Innerfashion Pvt. Ltd. with crore with Dollar and PEPE to invest Rs 36 crore each PEPE Jeans Europe B.V over a period of 4 years and the rest to be funded by banks as working
Slide 38: Annual Financial Highlights
A N N UA L FINANCIAL HIGHLIGHTS Q2FY22 Investor Presentation 38
Slide 39: Profit & Loss
PROFIT & LOSS Standalone (Rs lacs) Particulars FY19 FY20 FY21 Revenues 1,02,875.52 96,710.00 1,03,695.57 Other Income 220.96 471.20 348.13 Income from operations 1,03,096.48 97,181,20 1,04,043.70 Materials Consumed 43.353.72 44,486.70 44,527.79 Employee Cost 3,362.58 4,206.91 4,462.83 Other expendit
Slide 40: P&L Ratios
P&L RATIOS Revenue from operations (Rs cr) Profitability 117.31 120 111.04 15.00 100 87.28 2020-21 1036.96 75.25 79.79 13.00 80 59.45 11.27 10.77 11.00 60 2019-20 967.1 8.21 9.00 40 8.39 7.30 7.00 20 6.12 2018-19 1028.75 0 5.00 2018-19 2019-20 2020-21 PBT (Rs cr) PAT (Rs cr) PBT Margin (%) PAT Margi
Slide 41: Balance Sheet
BALANCE SHEET Standalone (Rs lacs) EQUITY & LIABILITIES 2019 2020 2021 ASSETS 2019 2020 2021 EQUITY NON-CURRENT ASSETS (a) Equity Share Capital 1,134.32 1,134.32 1,134.32 Property, Plant & Equipment 7,009.27 6,888.66 7,882.15 (b) Other Equity 40,634.87 45,360.23 53,147.13 Capital Work-in-progress 20
Slide 42: Working Capital
WORKING CAPITAL Receivables (days) Payables (days) 2020-21 122.0 2020-21 55.5 2019-20 133.0 2019-20 59.6 2018-19 112.6 2018-19 55.3 100.0 105.0 110.0 115.0 120.0 125.0 130.0 135.0 53.0 54.0 55.0 56.0 57.0 58.0 59.0 60.0 Inventory (days) Working Capital (days) 2020-21 112.5 2020-21 178.6 2019-20 118.
Slide 43: Key Ratios
KEY RATIOS ROE (%) ROCE (%) 2020-21 16.1 2020-21 22.8 2019-20 12.8 2019-20 20.0 2018-19 18.0 2018-19 32.6 0 5 10 15 20 0 5 10 15 20 25 30 35 Asset Turnover (%) Debt / Equity (x) 2020-21 124.4 2020-21 0.22 2019-20 118.4 2019-20 0.44 2018-19 138.7 2018-19 0.53 105 110 115 120 125 130 135 140 145 0.00
Slide 44: Annual Operational Highlights
A N N UA L O P E R AT I O N A L HIGHLIGHTS Q2FY22 Investor Presentation 44
Slide 45: Revenue Contribution
REVENUE CONTRIBUTION FY 21 FY 20 FY 19 92% 90% 90% 6% 7% 7% 3% 3% 2% DOMESTIC EXPORT MODERN TRADE 43% 41% 42% ZONE WISE 30% 29% 27% 24% 22% 20% 7% 8% 7% EAST WEST NORTH SOUTH FY 21 FY 20 FY 19 Q2FY22 Investor Presentation 45
Slide 46: Brand Wise Contribution
BRAND WISE CONTRIBUTION FY 21 FY 20 FY 19 43% 42% 42% 34% 35% 31% 9% 9% 9% 8% 8% 7% 4% 4% 2% 3% 2% 2% 2% 1% 1% 1% 1% 1% BIG BOSS CHAMPION FORCE GO WEAR FORCE NXT MISSY REGULAR SOCKS THERMALS Q2FY22 Investor Presentation 46
Slide 47: Category Wise Contribution
CATEGORY WISE CONTRIBUTION FY_19 FY_20 FY_21 50% 45% 45% 45% 44% 40% 36% 35% 35% 33% 30% % 25% 20% 15% 13% 13% 11% 10% 9% 9% 7% 5% 0% Premium Mid segment Thermal Economy Q2FY22 Investor Presentation 47
Slide 48: Management Team
M A N AG E M E N T T EA M Q2FY22 Investor Presentation 48
Slide 49: Our Founder
OUR FOUNDER Shri Dindayal Gupta Chairman Emeritus & Founder Has more than five decades of experience in the body-wear business. Under his dynamic and inspiring leadership, the company has grown exponentially over the years and earned laurels across national and international markets with its present
Slide 50: Leadership Team
LEADERSHIP TEAM VINOD KUMAR GUPTA BINAY KUMAR GUPTA KRISHAN KUMAR GUPTA BAJRANG KUMAR GUPTA Managing Director Managing Director Whole Time Director Whole Time Director Qualification : Member of the Institute of Qualification: Bachelor of Commerce Qualification: Bachelor of Science (B.Sc) Qualificati
Slide 51: Our Professional Team (1/2)
OUR PROFESSIONAL TEAM (1/2) ANKIT GUPTA GAURAV GUPTA AJAY KUMAR PATODIA ABHISHEK MISHRA President, Marketing Vice President, Strategy Chief Financial Officer Company Secretary Qualification : Bachelor’s Degree from St. Qualification : PGDM – Marketing, NMIMS Qualification : Chartered Accountant, Cos
Slide 52: Our Professional Team (2/2)
OUR PROFESSIONAL TEAM (2/2) SHANTANU BANERJEE SANJAY SRIVASTAVA VEDPAL VERMA Krishna Kumar SONI GM – Marcom & Branding GM – Sales (All India) GM - Fabric GM – Spinning Division A Marketing professional with 20 plus years He is the General Manger of Sales (all Qualification: B.Tech ( Textile Technolo
Slide 53: ESG Framework
ES G F R A M E WO R K Q2FY22 Investor Presentation 53
Slide 54: Environment (E)
ENVIROMENT (E) SOLAR POWER PLANT WINDMILL ZERO LIQUID DISCHARGE • Dollar commissioned a 4 MW solar power • Dollar installed four windmills with a power • Dollar invested in an effluent treatment plant plant at their manufacturing facility in generation capacity of 4.95 MW. with zero liquid discharge
Slide 55: Social (S)
SOCIAL (S) Dollar Industries has a dedicated CSR Committee Chaired by the Managing Director Mr Vinod Kumar Gupta Dollar Foundation joined hands with Joined hands with Delhi Metro Rail Authority Kolkata Police and distributed food and (DMRA) to contribute and install water kiosks medical equipment to
Slide 56: Governance (G)
GOVERNANCE (G) Board of Directors - Composition Diverse and experienced Board of Director. Promoters have more than 3 decades of experience in the business / industry. 50% of the Board of Directors comprises of Independent Directors. Audit Committee - Composition Three fourths (3 out of 4 members) o
Slide 57: Disclaimer
Disclaimer This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Dollar Industries Ltd (“Dollar”, "Company“), nor shall part, or all, of this document form the basis of, or be relied on in connection with, a
Slide 58: Thank You
THANK YOU For more information, Please contact Dollar Industries Ltd KAPTIFY® Consulting Ajay Kumar Patodia, Chief Financial officer Strategy & Investor Relations Advisory | Consulting Tel: +91-33-2288 4064 | Email: cfo@dollarglobal.in Tel: +91-845 288 6099 | Email: contact@kaptify.in www.dollarglob