Kolkata-based innerwear and knitted garment brand Dollar Industries Limited’s net profit reduced by 80 per cent to Rs. 9 crore in Q3 of FY ’23 compared to Rs. 44 crore in the same period of last fiscal year. The revenue from operations has been down by nearly 25 per cent to Rs. 285 crore during the Q3 of the current fiscal year.
Commenting on the results, Vinod Kumar Gupta, MD of the company said, “Due to the shift in seasonality and cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high cost inventory, our Q3 sales and margin have been adversely affected.”
He further added that 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, the company is expecting good demand in the coming quarters due to early festival sales in quarter four. Marketing spends have also been optimised and the company doesn’t have any major campaigns in the coming quarter.
The company also claimed that its flagship project Project Lakshya is doing well and has increased the share of revenue contribution in sales from 7 per cent in 9M of FY ’22 to 17 per cent in 9M of FY ’23. This has led the company to strengthen its sales force for smoother operations.
The company now has 12 EBOs across India.
