DOMS Industries Sees 42.8% PAT Growth in Q2 & H1 FY25

DOMS Industries Limited (‘DOMS’), a Company focused on manufacturing and marketing of a diversified product offering associated through the growing years of kids, children and young adults, announced its Financial Results for the Q2 & H1 FY2025.

Consolidated Key Financial Highlights are as follows:

Consolidated Performance Highlights for Q2 & H1’FY25

Consolidated Performance Highlights - Q2 (Y-o-Y)

Revenue from Operations for Q2’FY25 grew by 19.7% to ₹ 457.8 Cr as compared to ₹ 382.4 Cr in Q2’FY24.

EBITDA for Q2’FY25 grew by 31.7% to ₹ 85.9 Cr as compared to ₹ 65.2 Cr in Q2’FY24. EBIDTA margin for Q2’FY25 surged to 18.8% as compared to 17.1% in Q2’FY24.

PAT for Q2’FY25 grew by 42.8% to ₹ 53.7 Cr as compared to ₹ 37.6 Cr in Q2’FY24. PAT margin for Q2’FY25 rose to 11.7% as compared to 9.8% in Q2’FY24.

Consolidated Performance Highlights - H1 (Y-o-Y)

Revenue from Operations for H1’FY25 grew by 18.5% to ₹ 902.8 Cr as compared to ₹ 761.8 Cr in H1’FY24.

EBITDA for H1’FY25 grew by 35.2% to ₹ 172.3 Cr as compared to ₹ 127.4 Cr in H1’FY24. EBIDTA margin for H1’FY25 surged to 19.1% as compared to 16.7% in H1’FY24.

PAT for H1’FY25 grew by 46.1% to ₹ 108.0 Cr as compared to ₹ 73.9 Cr in H1’FY24. PAT margin for H1’FY25 rose to 12.0% as compared to 9.7% in H1’FY24.

Operational Highlights

Completion of Uniclan Acquisition: Successfully completed the acquisition of 51.8% stake in Uniclan Healthcare, a company engaged in the manufacturing and marketing of baby hygiene products - primarily diapers and wipes

Successful Capacity Expansion:
- Increased capacity for mathematical instrument boxes by 20%
- Underway to increase capacity utilisation of third pen plant to maximum capacity of 1 million pens/ day
- Installed third automatic book manufacturing line in Pioneer Stationery, increasing capacity by approximately 20%

New Product Launches Continues
- Introduction of new products like Highlighters and single use Marker Pens
- New SKU introduction across almost all product categories including Ball Point Pens, Adhesives, Kits & Combination Packs, Scholastic Stationery, Scholastic Art and Fine Art

Increase in Retail Footprint: Concentrated effort to increase our footprint leading to expansion from 1,25,000+ to 1,35,000+ retail stores

Inauguration of Second DOMS Painting Studio: On the back of success for the first studio at Mumbai, the Company inaugurated second DOMS Painting Studio at KidZania, in the NCR region with an objective to provide young consumers from that region, an immersive experience to explore various artistic roles with DOMS’ innovative and creative product range.

Commenting on the results and performance, Santosh Raveshia, Managing Director, DOMS Industries Limited said:

“We continued our resilient performance for Q2’FY25 despite a challenging market environment. This growth is largely driven by increase in sales of writing pens, adhesives and kits & combination packs as well as due to positive impact of Uniclan acquisition. We would like to thank our entire team and channel partners whose efforts have helped us achieve this growth in otherwise difficult period with challenging demand conditions in the domestic market as well in the export markets due to growing geopolitical tensions. The growth is also reflective of the strong acceptance and expanding reach of the DOMS Brand and product proposition.

Domestic sales continue to be the main driver of growth which now constitutes 85% of our total sales. Post completion of the festive season, we believe the domestic demand environment shall now see a gradual improvement as we enter the back-to-school season. On the export front, we foresee improvement in business conditions as we have started receiving encouraging feedback from most of customers for our products.

In line with our commitment to long-term growth and value creation, we are now transitioning from being a stationery and art material company to a diversified product company associated with the growing years of kids, children and young adults. The completion of Uniclan acquisition has helped in increasing our targeted addressable market with addition of baby hygiene products. At our recently held annual sales meet, along with new product launches in the stationery and art material business, we also launched the DOMS Wowper branded Baby Diapers. The response from our channel partners has been exciting and we are optimistic about the overall growth strategy in the baby hygiene segment.

Further, we continue to focus on increasing our manufacturing capacities for the stationery and art material business, albeit a brief slowdown during monsoons, with multiple ongoing projects including the construction at the adjoining 44 acres land parcel, which we believe will provide us the platform to capitalise on the untapped market potential.

Building on our well laid out foundation, we're poised for sustained growth guided by our core principles. With effective implementation of our strategic initiatives of product development, capacity enhancement, expanding distribution network and targeted market expansion for the baby hygiene segment, I am confident that we will continue to fuel our growth momentum and ensure a continued upward trajectory.”