Dollar Industries Ltd. · NSE:DOLLAR
Dollar Industries — Q2 FY24 Earnings Presentation
47 slides from Dollar Industries's earnings presentation, Nov 7, 2023
Slide 1: Cover letter to stock exchanges
Date: 7th November, 2023 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 /Ma’am R
Slide 2: Q2 FY24 Earnings Presentation
Q2 FY24 Earnings Presentation 1 DOLLAR INDUSTRIES LIMITED | Q2 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 From a dream to the reality of creating a city glitterati, the Biography of Shri Din Dayal market-responsive, multi-brand company Gupta, Chairman Emeritus, Dollar Industries that continues to retain its leading po
Slide 5: Agenda
Agenda 1 About Dollar Industries 05-10 2 Quarterly Highlights 11-16 3 Operational Highlights 17-20 4 Growth Drivers 21-29 5 ESG 30-36 6 Financial Summary 37-41 7 Annexure 43-46 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 6: About Dollar Industries
About Dollar Industries 5 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
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 capacity (pieces) Indian hosiery s
Slide 8: Mapping our Progress Over 50 Years
Mapping our Progress Over 50 Years • Revamped our brand identity by Started our journey as Bhawani introducing a new brand logo and Textiles, a proprietary firm, architecture under the leadership of • Launched our new TVCs for men’s and 1972-73 women’s sections Shri Dindayal Gupta 2017-18 • Launched
Slide 9: Dollar Portfolio (1/2)
Dollar Portfolio (1/2) Big Boss | J-Class | Athleisure Champion Vests, Briefs, Trunks, Gym Vests, T-shirts Bermudas Socks, Tank Tops, Crew Necks, Polos, Trousers Henley, Bermudas, Capri, Track Socks Pants, Joggers Ultra | Wintercare Missy | Athleisure Thermal V-necks Thermal Trousers Leg Wears, Casu
Slide 10: Dollar Portfolio (2/2)
Dollar Portfolio (2/2) Innerwear & Athleisure Activewear 9 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 11: 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 21.2% year-over-year (YoY) and 25.7% quarter-over-quarter (QoQ), reaching ₹ 4,125 million in Q2’FY24. Gross profit grew 28.6% YoY to ₹ 1,346 million,
Slide 12: Quarter Highlights
Quarter Highlights 11 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation 11
Slide 13: Key Highlights
Key Highlights Total volume saw a growth of 39.6% YoY No. of DFS dealers 309 & No. of EBOS in Q2’FY24 18 as on Q2’FY24 Operating Income increased by 21.2% YoY No. of Lakshya Distributors increased from to INR 4,125 Mn in Q2’FY24 229 in FY23 to 271 in Q2FY24 Increase in GP margin by 189 bps Increase
Slide 14: Quarterly Highlights (1/2)
Quarterly Highlights (1/2) ₹ Million Operating Profit After Cash Particulars Gross Profit Operating EBITDA Profit Before Tax Income Tax Profit1 Q2 FY24 4,125 1,346 417 334 249 291 Growth (YOY) 21.2% 28.6% 37.7% 53.0% 43.9% 34.7% Growth (QOQ) 25.7% 26.7% 54.0% 72.7% 71.2% 55.8% Margin2(%) 32.6% 10.1%
Slide 15: Quarterly Highlights (2/2)
Quarterly Highlights (2/2) ₹ Million ROE(%)2 ROCE(%)2 Particulars 30-Sep-22 31-Mar-23 30-Jun-23 30-Sep-23 13.4% 13.4% 12.9% Net Worth 6,984 7,088 7,241 7,323 10.9% 9.7% 10.6% 7.6% 8.1% Long Term Borrowings 3 1 1 1 Short Term Borrowings 2,431 1,615 1,494 2,098 Net Debt 2,431 1,614 1,492 2,096 Sep'22
Slide 16: Revenue Contribution (1/2)
Revenue Contribution (1/2) Brand Wise Trade Channel Wise 40.14% 2% 1% 35.55% 5% Q2’FY24 Q2’FY24 11.04% 9.11% 4.01% 92% 0.02% 0.13% Dollar Always Dollar Man Dollar Dollar Junior Dollar Dollar Force NXT* Woman Thermals Protect General Trade E-Commerce Modern Trade# Export *Force Gowear and Pepe are pa
Slide 17: Revenue Contribution (2/2)
Revenue Contribution (2/2) Region-Wise Gender-Wise 4% 22% 16% 47% Q2’FY24 Q2’FY24 23% North Men South Women East 80% Kids 8% West 16 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 18: Operational Highlights
Operational Highlights 17 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation 17
Slide 19: Edging Past Competition with Integrated Value Chain
Edging Past Competition with Integrated Value Chain Marketing and distribution 2.5 Million 400 tonnes 400 tonnes metres per month Average monthly Monthly installed capacity Packaging Captive elastic output of Ne 20s to of bleaching and dyeing Procurement production capacity 40s single yarn Our Value
Slide 20: Widening Footprint to Cater to Larger Population
Widening Footprint to Cater to Larger Population Sales Team Dealer network Retail reach 500+ 1500+ 1,40,000+ EBOs Branches Depots Warehouses 18 14 15 20+ Multi-platform E-retail presence Modern trade 19 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 21: Penetrating Countries Across the World
Penetrating Countries Across the World 77 4 15 11 33 1 8 5 2 12 14 9 14 13 10 6 Export revenue in Q2’FY24 15 Countries Rs. 208 Million Export revenue in FY26 Where we export 30 Countries 11.0% 1. UAE 2. Oman 3. Doha 5. Bahrain 6. Tanzania 7. Iraq 9. Myanmar 10. Nigeria 11. Sharjah 13. Benin 14. Togo
Slide 22: Growth Drivers
Growth Drivers 21 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation 21
Slide 23: Growth Drivers
Growth Drivers Strategic priorities Leveraging new brand Investing in digitisation Growth through overhaul Project Lakshya Growth through EBOs Diversifying Portfolio in Partnering for growth Adjacent Segments 22 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 24: Changing the Brand Architecture
Changing the Brand Architecture Why? What are we doing? Outcomes • 6 categories created – MAN, WOMAN, JUNIOR, • We have been able to significantly enhance our brand To change the perception that Dollar is just a ALWAYS, THERMALS, PROTECT recall through our dedicated branding initiatives. men’s inner
Slide 25: Integrating Digitalization to Increase Efficiencies
Integrating Digitalization to Increase Digitalization Efficiencies Why? To integrate digitalization in our daily operations to increase efficiencies What are we doing? • Integrating Auto Replenishment System (ARS) and Distributor Management Systems (DMS) for our Lakshya distributors • Implemented AR
Slide 26: Project Lakshya Updates
Project Lakshya Updates What are we doing? • Mapping retail network in area allocated to distributor • Enrolling retailers into Project Lakshya • Implementation of ARS and DMS at distributor level • SOPs laid out for distributors leading to improved 271 performance Distributors added until Q2FY24 Wh
Slide 27: Pursuing Growth Through EBO
Pursing Growth Through EBO 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 FOFO model (Franchise-owned
Slide 28: Strategic Partnership for Sustainable Growth
Strategic Partnership for Sustainable Growth Joint Venture with G.O.A.T I. We entered into a 51-49 JV with G.O.A.T Brands Lab Pte for Pepe Jeans Inner fashion Pvt. Ltd. II. G.O.A.T Brands Lab Pte acquired 50% stake of Pepe and additional 2% non-voting equity III. Multi-brand distributor for men, wom
Slide 29: Diversifying Product Portfolio in Adjacent Segment
Diversifying Product Portfolio in Adjacent Segment Dollar Protect, the ultimate rainwear line that ‘Dollar Woman’ celebrates the freedom of spirit combines elegance with unbeatable protection! every woman deserves with its newly launched lingerie line with a varied range of products like A wide rang
Slide 30: Resulting in Transformational Changes
Resulting in Transformational Changes High Margin Product Perceived as a men’s innerwear brand 05 contribution to increase from 27% in FY23 to “ Perceived as a brand for all ” 04 Rs. 20,000 Mn revenue by FY26 33% by FY26 • Active retailers per distributors 150-200 by 03 FY26 • Share of revenue from
Slide 31: ESG at Dollar Industries
ESG at Dollar Industries 30 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation 30
Slide 32: Contributing Towards A Greener Future
Contributing Towards A Greener Future Environment Solar power Wind power Zero liquid discharge 75 lakh 70 13.5 tonnes units/year lakh units Daily production capacity of our effluent treatment plant Power generation capacity Total power generated of the solar power plant in annually Tirupur 4 MW Tota
Slide 33: Empowering Our Biggest Asset
Empowering Our Biggest Asset Social Employee engagement Skill Women empowerment Diversity and inclusion development Engaging with our employees on Conducting regular Working towards reducing the Implementing anti-harassment and a daily basis to address their on-the-job and off-the-job gender gap and
Slide 34: Being A Responsible Corporate
Being A Responsible Corporate Social Donated ~Rs 147 lakhs to Donated ~Rs 25 lakhs to Installed water huts and kiosks Donated sanitary napkins to schools in UP, Rajasthan, cutting edge Cancer Care across the states of Delhi NCR, the underprivileged women Chhattisgarh and Odisha, to Centre in Tiruppu
Slide 35: Strengths that Drive Governance
Strengths that Drive Governance G overnance Diverse and experienced 75% members of the Audit Board of Directors Committee consist of Independent Directors Promoters possess All members of the Nomination >3 decades of experience & Remuneration Committee are Independent Directors We have one Woman Ind
Slide 36: Guided by Experienced Directors
Guided by Experienced Directors Mr. Vinod Kumar Gupta Mr. Binay Kumar Gupta Mr. Krishan Kumar Gupta Mr. Bajrang Kumar Gupta Mr. Gopal Krishnan Sarankapani Managing Director Managing Director Whole-time Director Whole-time Director Whole-time Director Mr. Rajesh Kumar Bubna Mr. Binay Kumar Agarwal Mr
Slide 37: Supported by an Experienced Team
Supported by an Experienced Team Mr. Ankit Gupta Mr. Gaurav Gupta Mr. Aayush Gupta Mr. Ajay Kumar Patodia Mr. Sanjay Srivastava President, Marketing Vice-president, Strategy Vice-president, Sales Chief Financial Officer General Manager – Sales Mr. Lalit Lohia Mr. Shantanu Banerjee Mr. Vedpal Verma M
Slide 38: Financial Summary
Financial Summary 37 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation 37
Slide 39: Quarterly Profit & Loss
Quarterly Profit & Loss ₹ Million Particulars Q2 FY24 Q2 FY23 YoY Change Q1 FY24 QoQ Change H1 FY24 H1 FY23 YoY Change FY23 Operating Income 4,125 3,404 21.2% 3,282 25.7% 7,408 7,021 5.5% 13,938 Gross Profit 1,346 1,046 28.6% 1,062 26.7% 2,407 2,273 5.9% 4,130 Gross Profit (%) 32.6% 30.7% 18
Slide 40: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation Dividend Payout Net Debt and Net Debt/Operating EBITDA 180 32% 35.00% 160 30.00% 140 16% 25.00% 1.94 1.64 120 ₹ Million ₹ Million 100 20.00% 1.52 17% 16% 1.40 80 15.00% 60 12% 0.93 10.00% 40 0.85 1,904 2,024 1,171 2,055 1,614 2,096 5.00% 136 170 170 116 20 96 0 0.
Slide 41: Shareholding Summary
Shareholding Summary Shareholding Pattern as on 30th Sep’23 Promoter & Promoter Group 73.1% Mutual Funds, AIFs & Other Financial Institutions 0.6% Foreign Portfolio Institutions 0.3% Bodies Corporate 9.2% Others 16.8% 40 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 42: Why Dollar?
Why Dollar ? Multi-brand portfolio Favourable financial Integrated operations Wide reach covering wider user base positioning Channel Integrated Increasing share of Continuously expansion & Omni value chain non-male users strengthening financials Channel strategy 41 DOLLAR INDUSTRIES LIMITED | Q2 FY
Slide 43: Thank You
Thank You Chief Financial Officer Investor Relations Advisor Ajay Kumar Patodia Sanjeev Sancheti Email: cfo@dollarglobal.in Email: ss@uirtus.in Website: www.dollarglobal.in Website: www.uirtus.in Tel: +91-33-2288 4064 Phone No.: +91 9836244222 42 DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presenta
Slide 44: Annexure
Annexure DOLLAR INDUSTRIES LIMITED | Q2 FY24 Earnings Presentation
Slide 45: Vision, Mission and Values
Ethos Vision, Mission and Values Our Vision Our Mission Core Values • Insights and constant innovation are a way for Dollar. We Dollar in everyone’s lives. • To emerge as India’s leading and most-loved also add value to the Dollar experience so as to keep it more innerwear brand vibrant and relevant
Slide 46: 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% 2,500 40.0% 20.0% 34.4% 34.2% 29.6% 32.5% 35.0% 16.4% 4000.0 2,000 30.0% 15.0% 13.2% 13.3% 3000.0 25.0% 1,500 10.8% 20.0% 9.3%10.0% 2000.0 1,000 15.0% 7.0% 10.0
Slide 47: Improving Our Capabilities for Higher Profitability
Improving Our Integrated warehouse Expansion of spinning capacity Increase in Solar Power Capabilities for Investments towards an integrated Increasing our spinning capacity from Capacity warehouse in West Bengal 22,000 spindles to 42,000 spindles Increasing our Solar Power Capacity Higher from 6 MW