Hosiery major, Dollar Industries Limited registered a turnover of Rs. 906 crore for the FY 2016-17 as against Rs. 830 crore during the previous year of FY 2015-16, as per the audited financial result; recording a revenue growth of 9.15 per cent. Revenue for Q4’17 was Rs 282 crore as against Rs 229 for Q4’16 a growth of 23.24% from the previous corresponding period.
Profit After Tax (PAT) grew by 64.95% to Rs 43.46 crore. Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) also witnessed a growth of 36.74% standing at Rs 101.19 crore. The export revenue of the Company stood at Rs 72.24 crore.
To boost its growth further, the company is eyeing 50 EBOs by the end of 2020 across major cities in India which would be operated by a franchise model.
The company has increased the reach across MBOs from 30,000 in FY 2010-11 to 80,000+ in FY 2016-17. It’s diversifying its product range and will soon introduce more variants in sleep wear, lounge wear, active wear and sports wear.
The number of distributors for Dollar Industries Ltd has also grown from 550 in FY 2009-10 to 850+ in FY 2016-17.
Dollar Industries is the only hosiery and knitwear company in India with a fully integrated production unit which has spinning capacity of 400 tonnes per month, knitting capacity of 300 tonnes per month and dyeing & bleaching capacity of 400 tonnes per month, elastic manufacturing capacity of 10,00,000 meters per month and cutting capacity of 3,00,000 pcs per day.
The company has also invested in wind power of 5 MW and an effluent treatment plant with zero liquid discharge.
“The company is going to be asset light. Moreover, we would be increasing our presence across India with special emphasis on consolidating the existing market. Our new diversifications in terms of products will see a nationwide rollout. We have received encouraging responses in the online platform both in terms of visibility and e-commerce. We will push the e-commerce sales up to the maximum percentage in our total turnover. Moreover ‘super premium category’ will be the prime focus for Dollar Industries Ltd in the coming days,” said Managing Director, Dollar Industries Limited, Vinod Gupta.
The company got listed in NSE on April 21, 2017 and the stock price is mostly hovering around Rs 1,600.
“FY 2016-17 was the most challenging year for the hosiery industry due to demonetization followed by escalating cotton prices across the world. But we have been able to record a higher growth in operating profit than the industry standards. It has been a satisfying year for us at Dollar Industries with the brand making inroads in newer territories and also consolidating its position in the existing hosiery markets in India and abroad. We are committed to maintain the topline growth of the company 15-20 per cent YoY. We are making efforts to improve EBITDA and PAT margins and aiming to achieve 15 per cent EBITA in next three years. We have achieved market penetration of 88 per cent across India which is a result of the team’s aggressive marketing and advertising strategy backed by superior product range, technology upgradation and capacity expansion,” added Gupta.