DOMS Reports Strong Q2 FY25 Financial Performance with 19.7% Revenue Growth

Key Takeaways from DOMS Financial Performance

• Gross profit margin improved to 43.4%, EBITDA margin to 18.8%, and PAT margin to 11.7%, indicating operational efficiency.
• The company completed the acquisition of Uniclan Healthcare and expanded production capacities across multiple product lines.
• The company expanded its retail presence to over 1,35,000 stores, introduced new products, and inaugurated a second DOMS Painting Studio to enhance consumer engagement. 

For the quarter ending September 30, 2024, DOMS recorded revenue from operations of ₹457.8 crore, marking a 19.7% increase from ₹382.4 crore in the same quarter last year (Q2 FY24). This growth is attributed to increased demand for DOMS' diverse product range and strategic retail expansions.

The company’s gross profit for Q2 FY25 stood at ₹198.7 crore, reflecting an improvement in the gross profit margin from 41.1% in Q2 FY24 to 43.4%. EBITDA for the quarter was reported at ₹85.9 crore, up 31.7% year-on-year compared to ₹65.2 crore in Q2 FY24. The EBITDA margin also saw a boost, rising to 18.8% from 17.1% in the previous year, underscoring the company’s efforts in cost efficiency and enhanced operational leverage.

Profit After Tax (PAT) for Q2 FY25 increased significantly by 42.8% year-on-year, totalling ₹53.7 crore as against ₹37.6 crore in Q2 FY24. This growth in profitability raised the PAT margin to 11.7% from 9.8% in the same quarter of the prior year, demonstrating DOMS’ strong market positioning and profitability.

Commenting on the financial performance, Mr Santosh Raveshia, Managing Director, DOMS Industries Limited, said: “We continued our resilient performance for Q2’FY25 despite a challenging market environment. This growth is largely driven by an increase in sales of writing pens, adhesives and kits & combination packs as well as due to the positive impact of the Uniclan acquisition. We would like to thank our entire team and channel partners whose efforts have helped us achieve this growth in an otherwise difficult period with challenging demand conditions in the domestic market as well in the export markets due to growing geopolitical tensions. The growth is also reflective of the strong acceptance and expanding reach of the DOMS Brand and product proposition. Domestic sales continue to be the main driver of growth which now constitutes 85% of our total sales. Post completion of the festive season, we believe the domestic demand environment shall now see a gradual improvement as we enter the back-to-school season. On the export front, we foresee improvement in business conditions as we have started receiving encouraging feedback from most of customers for our products.”

DOMS achieved notable operational milestones this quarter, including the completion of its 51.8% acquisition of Uniclan Healthcare, an emerging player in baby hygiene products, particularly in diapers and wipes. The company also successfully expanded its manufacturing capacities: a 20% increase in mathematical instrument box capacity, optimising a third pen plant to its peak capacity of 1 million pens per day, and the installation of a third automatic book manufacturing line at Pioneer Stationery, raising production capacity by 20%. DOMS further expanded its retail footprint by increasing its reach from 1,25,000 to over 1,35,000 retail stores.

The quarter also witnessed DOMS’ ongoing product innovation with the launch of highlighters, single-use marker pens, and new SKUs in various categories like ballpoint pens, adhesives, kits, and art supplies. DOMS inaugurated its second DOMS Painting Studio at KidZania in the NCR region, aimed at providing young users with an immersive experience to explore creativity using DOMS’ products.

About DOMS Industries Limited

DOMS Industries Limited is a well-established, India-based company engaged in the manufacture of stationery and art products. It designs, produces, and sells a large portfolio of items, which it organises into 7 categories, including scholastic stationery, fine art materials, office supplies, and art products. DOMS sells its products under a main brand named ‘DOMS’ and also sells other brands, including C3, Amariz, and FixyFix. DOMS covers all 29 states in India and exports its products to over 50 countries. The company’s success in rapidly increasing revenues and continuing to be reputationally strong, both domestically and internationally, has been directly proportional to its overall concentration on research & development, efficient product engineering, and backward supply chain integration. 

Key Takeaways from BharatNet Phase III Bids:

• HFCL, along with its consortium partners RVNL and Aerial Telecom Solutions, has secured contracts worth over Rs 8100 crores for BharatNet Phase III projects.  
• The consortium has been awarded a Rs 6,925 crore contract to provide middle-mile network infrastructure in Uttar Pradesh (East) and West.  
• HFCL has also emerged as the top bidder for the Punjab circle, winning a Rs 1,244 crore contract on its own.  
• The BharatNet Phase III initiative will connect over 250,000 gram panchayats across India, improving rural broadband and enabling e-health, e-education, and e-governance services.

The consortium has been awarded a Rs 6,925 crore contract to provide middle-mile network infrastructure in Uttar Pradesh (East) and Uttar Pradesh (West). 

In addition, HFCL has emerged as the top bidder for the Punjab circle, securing a Rs 1,244 crore contract for the BharatNet Phase III programme on a standalone basis. The company is also set to receive Operation and Maintenance (O&M) orders worth approximately Rs 4,155 crore for Uttar Pradesh and Rs 746 crore for Punjab after the networks are commissioned.

The BharatNet project, part of the Government of India's ‘Digital India’ initiative, aims to provide high-speed broadband connectivity to rural and underserved areas across the country. 

The BharatNet Phase III programme will connect over 250,000 gram panchayats across India, enabling services such as e-health, e-education, and e-governance, and paving the way for new opportunities in rural broadband infrastructure.

About HFCL Limited:

HFCL is a leading technology company that specialises in building digital networks for telecommunications, enterprises, and governments. With decades of expertise in fibre optics and strong R&D capabilities, HFCL offers innovative, high-tech solutions. The company has in-house R&D centres in Gurgaon, Bengaluru, and Hyderabad, along with global collaborations, enabling it to develop cutting-edge products. HFCL manufactures premium optical fibre cables, 5G solutions, Wi-Fi systems, and telecom equipment. With plants in Hyderabad, Goa, Chennai, and Manesar, HFCL supports India’s ‘Make in India’ initiative and serves customers across India, Europe, the Middle East, and the USA.

About Rail Vikas Nigam Limited:

Rail Vikas Nigam Limited (RVNL) is a public sector undertaking established to enhance the infrastructure of Indian Railways. Since its formation, RVNL has completed over 150 railway projects and expanded its scope to include various infrastructure projects both domestically and internationally. Its primary objectives are to fast-track project execution, mobilise financial resources, and maintain high technical standards while ensuring cost-effective operations. RVNL is also involved in creating Special Purpose Vehicles (SPVs) for specific projects and is responsible for their commercialisation. Additionally, it operates on a Build-Operate-Transfer (BOT) model, generating revenue through access charges paid by the Ministry of Railways.

About Aerial Telecom Solutions Private Limited:

Founded in 2010 and headquartered in Mohali, Aerial Telecom Solutions Private Limited aims to be a global leader in the telecom, IT, ITes, and banking sectors. The company has consistently achieved annual growth in revenue and profitability by prioritising customer satisfaction and fostering long-term client relationships. Over the past decade, Aerial Telecom has established itself as a trusted telecom solutions provider and is now expanding into resource management and IT services. The company is ISO 9001:2019 and OHSAS 18001:2019 certified and was honoured with the ‘Customer Obsession Award - 2019’ by CII

Key Takeaways from Gujarat Ambuja Clearance:

• Gujarat Ambuja Exports has received Environmental Clearance (EC) for a new 180 KLPD Greenfield Grain-Based ENA and Ethanol Plant in Malda, West Bengal.
• The plant will be located next to the company’s existing maize processing unit and will manufacture alcohol for the food and pharmaceutical industries.
• The project is valued at approximately Rs 180 crore and aims to diversify the company’s revenue streams.
• The plant is subject to approval from the State Pollution Control Board and is expected to contribute to long-term growth by expanding the company’s client base.

The plant will be set up for the establishment of a 180 KLPD Greenfield Grain-Based Extra Neutral Alcohol (ENA) and Ethanol Plant in Malda, West Bengal. 

The facility, which will be located next to the company's existing maize processing unit, aims to manufacture alcohol primarily for the food and pharmaceutical industries.

The project, valued at approximately Rs 180 crore, is expected to diversify the company’s revenue streams and enhance its market presence. 

The plant is subject to approval from the State Pollution Control Board, and once operational, it will contribute to long-term growth by expanding the company’s client base.

About Gujarat Ambuja Exports Limited:

Gujarat Ambuja Exports Limited (GAEL), established in 1991, is a leading manufacturer of corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oils. The company serves diverse industries, including food, pharmaceuticals, and animal nutrition, with a focus on long-term growth within the agro-processing sector. GAEL’s mission is to provide high-quality ingredients globally, adhering to international standards and contemporary technology. With a vision to become a global leader and a one-stop solution for ingredients, the company is committed to nurturing its brands, ensuring sustainability, and strengthening its supply chain responsibly and securely.

Key Takeaways from Balaji’s Beginning of Commercial Production:

• Balaji Amines begins commercial production at its new Methylamines plant in Solapur, Maharashtra.
• The facility has a production capacity of 40,000 tonnes per annum (TPA).
• The plant features updated technology, offering a competitive cost advantage in the market.
• The commercial production has commenced successfully and as planned.

The plant is located at Unit-IV, F-104, Chincholi MIDC, Solapur, Maharashtra. The facility part of the company’s Phase-2 expansion, has a production capacity of 40,000 tonnes per annum (TPA). 

The new facility incorporates updated technology that is expected to provide a competitive cost advantage in the market. Balaji Amines confirmed that the production process has started smoothly and as planned.

About Balaji Amines Limited:

Balaji Amines Ltd., based in Solapur, Maharashtra, is a leading manufacturer of aliphatic amines, methylamines, ethylamines, speciality chemicals, and pharma excipients. An ISO 9001:2015 certified company, Balaji Amines serves various industries including pharmaceuticals, pesticides, and speciality chemicals, with a focus on quality and innovation. The company also produces derivatives for downstream applications across multiple sectors. With state-of-the-art, computerised manufacturing facilities, Balaji Amines is committed to delivering high-quality products that meet the specific needs of its customers. For more information, visit [www.balajiamines.com](http://www.balajiamines.com).