Dollar Industries Ltd

We are thrilled to share that Dollar Industries Limited has reached its all-time highest quarterly and annual income! These phenomenal results demonstrate our unyielding dedication to excellence, fostering innovation, and ensuring customer satisfaction in an ever-changing industry environment.

In FY 2023-24, Dollar experienced a remarkable upsurge driven by burgeoning demand for our products. Our total income for FY 2023-24 soared to INR 1,577 Crore, marking a substantial 12.7% increase compared to the previous year, perfectly aligned with our target revenue growth of 11%-12%. Additionally, our total volume surged by over 21% in FY 2023-24, and our net profit surged by an impressive 71.7% to

INR 90 Crore.

Dollar has emerged significantly more potent in the face of the challenges encountered in FY 2022-23. Stabilising raw material prices and resolving high-cost inventory concerns have led to a remarkable turnaround. Our gross profit margin has surged by 256 basis points year-on-year, reaching an impressive 32.2% in FY 2023-24. The early onset of Eid and the resounding success of Project Lakshya have been pivotal in driving a robust and promising fourth quarter, resulting in our highest-ever quarterly income.

Through our Lakshya project, we aim to expand our market reach and product range, ultimately increasing visibility and shelf space in retail outlets. We're striving to secure more prominent placement in stores and expand the number of outlets carrying our products, encompassing various categories such as men's, women's, innerwear, athleisure, activewear, and our premium product, Force NXT.

One of the key objectives of this project is to reduce the overall working capital cycle, particularly once a significant contribution begins to flow from the project. We achieve this by implementing distributor management and auto-replenishment systems at the distributor level. This move provides valuable insights into sales patterns, customer preferences, and product demand at a granular level, down to specific pin codes.

J1,577 Crore

Total income for FY 2023-24

J90.2 Crore

Net profit for FY 2023-24

With this data, we can tailor our approach more effectively, transitioning from a traditional push model to a pull model. Through the auto-replenishment system, we ensure that distributors' stocks are replenished weekly based on their previous week's sales, optimising stock levels and controlling channel stocks.

In the fourth quarter of FY 2023-24, our total income reached INR 502 Crore, marking a substantial 23.2% year-on-year growth. Additionally, the total volume experienced a robust increase of approximately 17.6% year-on-year in Q4 FY 2024, while our net profit for the quarter surged to INR 33

Crore. Moreover, our cash conversion cycle in FY 2023-24 saw a remarkable improvement to 150 days, down from 159 days in FY 2022-23, primarily due to the reduction in inventory days. This outcome was achieved by eliminating high-value inventory, resulting in a more efficient system.

The accomplishments mentioned above highlight the successful implementation of our carefully planned strategic initiatives. They are a testament to our entire team's dedicated and collaborative efforts. These achievements have strengthened the position of Dollar, ensuring that we are well-equipped for sustained success and expansion in the years to come.

In fourth quarter of FY 2023-24, our premium segment portfolio, consisting of Force NXT, Force Go Wear, Thermal, and Pepe, exhibited significant growth. In terms of value, there was a remarkable 28% year-on-year increase, and in terms of volume, we clocked an impressive 52% year-on-year growth. These outstanding results highlight our strategic emphasis on premium products and reinforce the confidence in Dollar's continued growth and profitability. In FY 2023-24, we witnessed an impressive 18% surge in the value and a 26% uptick in the volume of our premium segment.

Our products, Force NXT and Missy showed commendable growth and significant achievements in the past fiscal year. Force NXT's value grew by 42%, and volume surged by 52%, reflecting our commitment to innovation, quality, and market expansion. We also expanded our market reach and customer base while enhancing production capabilities to meet increasing demand. For the full year, Missy experienced a 7% increase in value and a 9% increase in volume. The remarkable growth in the Force NXT portfolio assures us that the premium segment will continue to be crucial for maintaining sustained revenue and profitability growth in the future.

Your Company is excited to announce

Project Lakshya for the upcoming fiscal year in three new states: Madhya

Pradesh, Jharkhand, and Himachal Pradesh. By onboarding 10 new distributors in Q4 FY 2024, Project Lakshya achieved significant progress elevating our total distributor count from 229 in March 2023 to 290 in March,

2024.. The contribution of Project

Lakshya to your Company's domestic sales soared from 18.6% to 26.3% in

FY 2023-24. We aim for Project Lakshya distributors to steer 65%-70% of our revenue by FY 2025-26.

In the Lakshya project, our enrolled distributors typically serve more retailers than industry averages, often reaching 200 to 300 retailers each. This expanded reach is crucial because, in our industry, retailers play a pivotal role in influencing consumer preferences. By connecting directly with retailers through tele-calling systems and logistics, we ensure swift product delivery within 24 to 48 hours, enhancing retailer satisfaction and reducing their working capital burden.

By streamlining operations and offering quick, efficient service, we aim to create a win-win situation for retailers, enabling them to free up working capital and diversify their product offerings. Ultimately, our goal with the Lakshya project is to establish Dollar as the go-to brand for all innerwear products in retailers' shops, fostering strong brand loyalty and market dominance. This project represents a significant shift in our approach. It sets us apart from traditional marketing models, focusing on creating value for distributors and retailers while strengthening our brand presence.

We have observed substantial progress in modern trade and e-commerce, constituting approximately 3% of our total sales in Q4 FY 2024 and 4% for the entire fiscal year. We seek to double this figure to around 8% by FY 2025-26.

In the face of market challenges, our persistent emphasis on delivering top-tier products and optimising operations has expanded our market presence and cemented our status as an industry powerhouse. Dollar is thriving and setting unprecedented standards for success.

In the fourth quarter of FY 2023-24, our operational revenue saw a remarkable 23% year-on-year increase, reaching INR 500 Crore compared to INR 406 Crore in FY 2022-23.

Our Q4 FY 2024 gross profit also experienced a substantial surge to INR 153 Crore, indicating a noteworthy year-on-year growth of about 53.6%.

Furthermore, the gross profit margin for

Q4 FY 2024 expanded to 30.6% from 24.5% in Q4 FY 2023, demonstrating an impressive 609 basis points increase.

This significant margin expansion reflects the stabilisation of raw material prices, which posed considerable challenges to the industry during FY 2022-23.

In FY 2023-24, your Company achieved a remarkable gross profit of INR 506

Crore, a substantial 22.6% increase from the previous year. The gross profit margin for FY 2023-24 also experienced a notable uptick, reaching 32.2% compared to 29.6% in FY 2022-

23, reflecting a significant expansion of 256 basis points. Moreover, the operating EBITDA in Q4 FY 2024 showcased exceptional growth, surging by 405.9% year-on-year to INR 57 Crore. Additionally, the Q4 FY 2024 operating EBITDA margin expanded impressively by 865 basis points year-on-year to 11.4%. In FY 2023-24, operating EBITDA skyrocketed by an impressive 61.5% to INR 159 Crore, with the operating EBITDA margin expanding by 304 basis points to 10.1%. In Q4

FY 2024, the profit after tax (PAT) saw an extraordinary 5,912% year-on-year growth, reaching INR 33 Crore and a PAT margin of 6.6%. Furthermore, for FY 2023-24, the PAT surged by an outstanding 71.7% year-on-year to INR 90 Crore, with a PAT margin of 5.7%.

Our dedication to our strategic priorities and growth pillars is unwavering. With a strong quarter behind us and a continued focus on premiumisation, we are confident we can achieve significant revenue and profit growth in the current financial year and beyond. Our ongoing aim for sustainable development and profitability drives our efforts and strategies.