DOMS Industries reports robust 39.8% PAT growth in Q3 FY25

DOMS Industries Limited, a leading company specializing in the manufacturing and marketing of products for children and young adults, has announced its financial results for Q3 and 9M FY25, showcasing significant growth across key financial metrics.

Financial Highlights:

• Q3 FY25:

  • Revenue from Operations: ₹501.1 Cr, up 34.9% from ₹371.6 Cr in Q3 FY24.
  • EBITDA: ₹87.9 Cr, up 26.7% from ₹69.3 Cr in Q3 FY24. EBITDA margin stood at 17.5%, compared to 18.7% in Q3 FY24.
  • PAT: ₹54.3 Cr, reflecting a growth of 39.8% from ₹38.8 Cr in Q3 FY24. PAT margin rose to 10.8% from 10.4% in Q3 FY24 

• 9M FY25:

  • Revenue from Operations: ₹1,403.9 Cr, up 23.9% from ₹1,133.4 Cr in 9M FY24.
  • EBITDA: ₹260.2 Cr, up 32.2% from ₹196.8 Cr in 9M FY24. EBITDA margin improved to 18.5%, up from 17.4% in 9M FY24.
  • PAT: ₹162.3 Cr, showing a 43.9% increase from ₹112.7 Cr in 9M FY24. PAT margin rose to 11.6% from 9.9% in 9M FY24.

Operational Highlights:

• Export Excellence: DOMS was awarded the Top Exporter Award for the third consecutive year by the Pen & Stationery Association of India, reinforcing its leadership in the Indian export market.
• Employee Engagement: The company approved the grant of 117,045 stock options under the Employee Stock Option Plan 2023, recognizing employee excellence and motivating talent.
• Sustainability: DOMS successfully installed a 1 MW solar plant at its Umergaon manufacturing facility, underscoring its commitment to a sustainable future.
• Expansion Plans: The company’s greenfield expansion of 44+ acres is progressing on schedule, with the first building expected to be ready for machinery installation by Q3 FY26.
• Uniclan Healthcare Growth: The company is making significant strides in its healthcare segment, with the launch of co-branded DOMS Wowper diapers and the installation of a third diaper production line to increase capacity to 65 crore diapers per annum. 

Management Comments:

Santosh Raveshia, Managing Director of DOMS Industries Limited, commented on the results:
“Despite the tepid market conditions and festive season in India as well as globally, we continued on our consistent growth trajectory during Q3’ FY2025. Our strategic initiatives have played a pivotal role in fueling this growth. The successful acquisition of Uniclan Healthcare, which led our entry into Baby Hygiene products, coupled with our timely expansion of capacities across various product categories, have all contributed positively to our quarterly performance.

The company's manufacturing cost structure broadly remained stable in Q3 FY'25, with input prices holding steady, resulting in consistent gross margins on a sequential basis. Consolidated EBITDA for the quarter grew 26.7% Y-o-Y and 2.2% sequentially. However, there was a slight margin compression of approximately 120 bps Q-o-Q, which was primarily driven by increased employee expenses, stemming from additional hiring to support production capacity expansion and the impact of ESOP grants to reward employees. Furthermore, we witnessed an increase in selling and distribution expenses, primarily due to the consolidation of Uniclan Healthcare. As a result of these factors, the company's consolidated EBITDA margin stood at 17.5%, as expected, but higher than our targeted range of 16-17%.

Going forward, we remain cautiously optimistic in the near term, with tailwinds from the upcoming back-to-school season, growing emphasis on education, and increased government spending in this sector contributing to the growth momentum. Our strategic priorities remain unchanged with a focus on delivering consistent and profitable volume growth through expanding our production capacities, investing in our brands, and strengthening our supply chain, positioning ourselves for sustainable long-term growth.”

Raveshia further added, “Lastly, I would like to appreciate the unwavering dedication and relentless efforts of our entire team and channel partners, who have worked tirelessly to drive this growth and excellence. Further, we extend our heartfelt gratitude to our valued consumers for embracing our products. Their unwavering support fuels our passion and inspires our team to innovate, design, and deliver high-quality products to meet the evolving needs of our consumers.”

With its impressive performance in Q3 and 9M FY25, DOMS Industries is poised for continued growth and expansion across both its core and emerging business segments.