DOMS Industries’ Net Profit Jumps 42.8% YoY In Q2FY25
The revenue from operations registered a 19.7 per cent YoY rise in the recently concluded quarter as it surged to Rs 457.8 crore
Despite a challenging business environment, DOMS Industries witnessed a 42.8 per cent year-on-year (YoY) rise in its net profit in the second quarter of the current financial year (Q2FY25). As per the company’s consolidated financial results, its net profit increased from Rs 37.6 crore in Q2FY24 to Rs 53.7 crore in Q2FY25.
The revenue from operations registered a 19.7 per cent YoY rise in the recently concluded quarter as it surged from Rs 382.4 crore in Q2FY24 to Rs 457.8 crore in Q2FY25. The net profit margins for the company stood at 11.7 per cent in Q2FY25 from 9.8 per cent in Q2FY24. The net profit in the first half of the current fiscal (H1FY25) was Rs 108 crore, registering a 46.1 per cent YoY rise.
The earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 85.9 crore in the recently concluded quarter (Q2FY25) as compared to Rs 65.2 crore, marking a 31.7 per cent YoY rise. The EBITDA margins were 18.8 per cent in Q2FY25 as against 17.1 per cent in Q2FY24.
Second quarter of the current fiscal has been a difficult quarter for consumer companies, with most firms seeing their Bloomberg consensus earnings estimates getting lowered. Most staples companies have reported revenue growth in low- to mid-single digits y-y with pressure on EBITDA margins, while DOMS has reported 17 per cent revenue growth with an expansion in margins.
DOMS’ core business (ex-Uniclan) saw 17 per cent YoY sales growth in H1FY25, but the company expects to end the year with 20 per cent growth. Including Uniclan, DOMS expects to report 23-25 per cent sales growth in FY25. Growth was driven by the increase in sales of pens, adhesives and kits and combination packs. Its paper business was hit by price deflation and international business was hurt by issues in the Middle East.
