DOMS Industries (DOMS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 17.3% year-over-year to ₹445 crore, with sequential growth of 10.2%, and PAT increased to ₹54.3 crore, reflecting strong margin expansion despite weather-related challenges.

• Strategic focus included expanding the product portfolio into toys and baby diapers, and launching new writing instruments and fine art products.

• Ongoing capacity expansion projects, including a new 44-acre facility and increased pen and pencil manufacturing, support future growth.

• Completed IPO in December 2023, raising ₹33,157.50 lakhs, with significant proceeds still unutilized and invested in fixed deposits.

• Acquired 51% stakes in Uniclan Healthcare and SKIDO Industries, diversifying into baby care and Back to School segments.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹445 crore, up 17.3% year-over-year; EBITDA rose 38.9% to ₹86.4 crore, with margin expansion to 19.4%.

• PAT increased to ₹54.3 crore, with margin rising from 9.6% to 12.2% year-over-year; EPS for Q1 FY25 was ₹8.95.

• Gross profit for Q1 FY25 was ₹191.8 crore, up 31.5% year-over-year, with gross margin at 43.1%.

• Working capital cycle improved to 40–41 days, mainly due to lower inventory days.

• FY24 ROE was 33.3% and ROCE was 24.3%.

Outlook and guidance

• Full-year revenue growth guidance is 20% for the core business, with additional upside from inorganic acquisitions.

• EBITDA margin expected to normalize to 17% for FY25, factoring in lower-margin acquisitions and ESOP-related accounting.

• Pen manufacturing capacity to reach 3 million units/day in Q2 FY25; pencil capacity expansion planned for late FY25/early FY26.

• Construction of a new 44+ acre facility is ongoing, with the first building expected by Q3 FY26.

• IPO proceeds are being utilized for project financing and general corporate purposes, with significant funds still unutilized.