Doms Industries Ltd Share Price – NSE /  BSE

Printing & Stationery, Small Cap

Revenue from operations jumped by 19.71% YoY to Rs 457.77 crore in the quarter ended 30 September 2024.

Profit before tax was at Rs 72.05 crore in the second quarter of FY25, up 42.87% from Rs 50.43 crore posted in the same period a year ago.

EBITDA grew by 31.7% YoY to Rs 85.9 crore during the quarter. EBITDA margin improved to 18.8% in Q2 FY25 as compared to 17.1% recorded in Q2 FY24.

On half year basis, the company’s consolidated net profit surged 46.07% YoY to Rs 103.17 crore in H1 FY25 as compared to Rs 70.63 crore recorded in H1 FY24. Revenue from operations increased 18.50% YoY to Rs 902.78 in H1 FY25.

Santosh Raveshia, Managing Director, DOMS Industries 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.”

Doms Industries is primarily engaged in manufacturing, marketing, trading and distribution of school stationery and art materials under the brand names 'DOMS' and 'C3'

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Net profit of Doms Industries rose 42.54% to Rs 51.33 crore in the quarter ended September 2024 as against Rs 36.01 crore during the previous quarter ended September 2023. Sales rose 19.71% to Rs 457.77 crore in the quarter ended September 2024 as against Rs 382.39 crore during the previous quarter ended September 2023.

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Doms Industries will hold a meeting of the Board of Directors of the Company on 9 November 2024

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Uniclan Healthcare Private (Uniclan), a growing producer of baby diapers, wipes, and other baby hygiene products.

As part of the transaction, the company has acquired 7,116,080 equity shares of Uniclan for a total consideration of Rs 54.88 crore. Of this amount, Rs 28.88 crore will be used as primary infusion to support capacity expansion, debt repayment, and funding working capital requirements for Uniclan. The acquisition makes Uniclan a subsidiary of the company.

This acquisition enables the company to expand its product range and diversify its product portfolio in line with its overall growth strategy to cater to a broader market. Uniclan has a state-of-the-art manufacturing facility in Jaipur, Rajasthan with an installed capacity approximately 400 million pullup pant style baby diapers per annum which are primarily sold under its flagship brand Wowper.

Uniclan's keen focus on advanced R&D and adherence to international quality standards has resulted in growing market acceptance and reputation for its products. Uniclan is now focussed on expanding its market reach by expanding its distribution network.

By entering the diaper market, which is valued at approximately $2 billion and growing at a compound annual growth rate (CAGR) of approximately 16%, DOMS significantly expands its addressable target market. In the short term, Uniclan will benefit from DOMS' extensive distribution network, including its strong relationships with super stockists and distributors that shall allow Uniclan to expand its market reach. Over the long term, this partnership opens the possibility for Uniclan’s network to serve as a parallel distribution channel for DOMS' own products, thus amplifying the growth potential of both companies.

Santosh Raveshia, MD, DOMS Industries, said, We are pleased to announce our strategic entry into the baby hygiene segment with this investment in Uniclan. Its well-accepted product portfolio, growing market presence and forwardthinking approach align perfectly with our vision for growth and diversification. This acquisition is a crucial step in our long-term strategy to explore new sectors that enhance our business portfolio and resonate well with our targeted focus on children in their growing years.

While we remain focused on driving innovation and delivering value across our core business segments, the expansion is expected to boost our distribution network in the long term, opening new avenues for sales and contributing to our overall success. We are eager to forge a successful partnership with Uniclan and anticipate numerous opportunities for innovation and mutual success.

Vatsal Desai, Founder and Director, Uniclan Healthcare added, “We are excited to partner with DOMS, a company that shares our commitment for long term value creation. We believe that with our focus on product quality and innovation, and leveraging DOMS distribution network in India and globally, we shall be able to elevate Uniclan's growth trajectory and expand our reach. By leveraging DOMS consumer knowledge and market expertise, we are confident that we can further strengthen our brand and continue to deliver exceptional products to our customers. Together, we look forward to setting new benchmarks in the industry and driving forward our shared vision for the future.”

Doms Industries is primarily engaged in manufacturing, marketing, trading and distribution of school stationery and art materials under the brand names 'DOMS' and 'C3'.

Shares of Doms Industries rose 0.19% to Rs 2,704.10 on the BSE.

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