Dollar Industries Ltd’s Q3 net profit drops 80 percent to Rs 9 crore
Dollar Industries Ltd’s net profit for the quarter ended December 2022 was down by 80 percent to Rs 9 crore ($1.1 million), as against Rs 44 crore reported in the year-ago period.
The company’s revenue for the quarter was down by 25 percent to Rs 285 crore, as against Rs 381 crore reported in the corresponding period of the previous fiscal year.
Commenting on the results, Vinod Kumar Gupta, managing director at Dollar Industries in a statement said, “The shift in seasonality and cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high-cost inventory had adversely affected the Q3 sales and margin.”
“But now things are getting stable and channel inventory has also been reduced due to low volume offtake by the business partners in this quarter. High inventory cost has also been optimised. With these, we are expecting a good demand in due to early festival sales in quarter four. Our marketing spends have also been optimised and we don’t have any major campaigns in the coming quarter,” Gupta added.
To increase its market share, Dollar has expanded its product portfolio by including a new range of products in the women's segment and active wear in the premium segment.
Additionally, the company also launched the Dollar Raincoat, under Dollar Protect category, which it claims will boost the sales in coming quarters.
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