Dollar Industries Limited — Call Transcript 2019

Aug 7, 2019

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street,	The Secretary, National Stock Exchange of India Ltd.,
Mumbai - 400 001	Exchange Plazza, C-1, Block 'G', Bandra-Kurla Complex, Bandra (E),
Scrip Code: 541403	Mumbai - 400 051. Symbol - DOLLAR

DOLLAR INDUSTRIES LIMITED ONE OF INDIA'S FASTEST GROWING LIFESTYLE INNERWEAR COMPANY

Earnings Call Q1 2019-20 07th August, 2019

Background

• Established in 1972 as a small family-run body-wear company having more than 4 decades of experience
• Over the years, through its premium range of clothing, focus on product cost and quality, Dollar evolved into one of India's best known lifestyle innerwear brand
• Dollar is now an internationallyinnerwear brand
• It is India's first innerwear Company with a fully backward integrated manufacturing unit, equipped with state of the art machinery
• Dollar enjoys a pan-India presence with 915+ distributors and 95,000+ MBOs
• Dollar has a presence in 20 countries across the globe
• Promoter and promoter group Company supported by competent professionals having vast experience in body-wear sector

Portfolio

	Dollar Industries Limited	Corporate Presentation 2017-18 Investor Presentation Q1 2020	2
Background	Portfolio
Established in 1972 as a small family-run body-wear company having more than 4 decades of experience	Dollar has an extensive product portfolio for men, women and kids in class, class for mass and mass segment which include:
Over the years, through its premium range of clothing, focus on product cost and quality, Dollar evolved into one of India's best known lifestyle innerwear brand	Casual Innerwear wear	Lounge Thermal wear wear	Kids' wear
Dollar is now an internationally recognised Indian knitwear and innerwear brand	Class	Class for Mass	Mass
It is India's first innerwear Company with a fully backward integrated manufacturing unit, equipped with state of the art machinery Dollar enjoys a pan-India presence with	Present through Pepe Jeans Innerwear Fashion Pvt Ltd, a Joint Venture Company and Force NXT	Force Go Wear, Missy, Ultra Thermals, Champion, Bigboss	Lehar RKG Comfort Commando

Achievements

Dollar was bestowed with 'One Star Export House' certification by DGFT, Department of Commerce, Ministry of Commerce and Industry, Government of India in the year 2010.

Dollar brand offerings

• Segment: Class
• Products: Vests, briefs, trunks and T-shirts, Athleisure
• Target audience: Men (20- 40 years of age)
• Aspires people with high and comfortable disposable income
• USPs: International quality, global fashionable products
• Tagline: Inner fashion
• Team headed by President

• Segment: Class for mass
• Products: Vests, briefs and trunks
• Target audience: Men (30-60 years of age)
• Targets urban population with a considerable income & value for money products
• USPs: Affordable, fashionable, comfortable and sporty
• Mr. Gaurav Gupta, Vice Kumar Gupta and Mr. Binay Kumar Gupta, Managing Directors and Mr. Krishan Kumar Gupta , Whole Time Director

• Segment: Class for mass
• Products: Camisoles, panties, leggings and lounge-wear
• Target audience: Women and girls (18-45 years of age)
• Mainly targets average income trend followers
• USPs: Comfortable fits and product variety (sizes and colors), quality product in an affordable price Mr. Ankit Gupta, Vice
• Tagline: Carry on Missy
• Team headed by President

Dollar brand offerings

• Segment: Class for mass
• Products: V neck with trousers, long short camisoles
• Target audience: Men, women and kids
• Considerable income group and value for money
• USPs: Ultra-light, comfortable, stylish, winter-wear
• Managing Directors and Mr. Krishan Kumar Gupta and Mr. Bajrang Kumar Gupta, Whole Time Directors * Products available at organised and retail MBO. However Force NXT has an exclusive distribution channel

• Segment: Class for mass
• trousers
• Target audience: Kids
• Value for money
• USPs: Affordable, sporty and primarily caters to suburban and rural customers
• Team headed by President

• Segment: Class for mass
• Products: T-shirts (round neck and collared), vests (innerwear and sports vests), briefs, boxers, bermudas, capris and track-pants Gupta and Mr. Binay Kumar Gupta,
• Target audience: Men
• Targets those who are trend followers and yet a generation of growing economy
• USPs: Affordable, comfortable and caters to the mass market
• Managing Directors and Mr. Krishan Kumar Gupta , Whole Time Director

* Our products are within the price range of INR 50 to INR 999

5

Dollar's distribution network

• Dollar has developed a robust distribution network across India and also exports its products to 19 countries
• Dollar products enjoy superior visibility across rural and metro India
• Dollar's relationships with wholesalers and retailers enhanced logistical efficiency and revenue accretion
• Dollar is venturing into new retail formats (LFSs, e-commerce portals and EBOs)

3 years geographical sales break up in %

Financial Highlights for Quarter ended 30th June, 2019

Dollar Industries Limited		Corporate Presentation 2017-18 Investor Presentation Q1 2020		6
Financial Highlights for Quarter ended 30th June, 2019
				(` in Lakhs)
		Quarter ended		Year ended
	30-06-2019	31-03-2019	30-06-2018	31-03-2019
Particulars	(Unaudited)	(Audited)	(Unaudited)	(Audited)
Revenue from operations	23,359.88	29,779.68	24,365.02	1,02,875.52
Other income	34.43	70.44	16.04	220.96
Total income (I+II)	23,394.31	29,850.12	24,381.06	1,03,096.48
Expenses
Cost of materials consumed	11,831.87	11,216.11	11,671.43	47,461.14
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2,216.07)	2,806.58	(1,626.05)	(4,107.42)
Sub-contract expenses	4,668.85	5,573.46	5,104.26	21,107.20
	14,284.65	19,596.15	15,149.64	64,460.92
Gross Margin	9,109.66	10,253.97	9,231.42	38,635.56
Employee benefits expense	962.71	918.28	746.86	3,362.58
Other expenses EBITDA	5,415.44 2,731.51	5,825.16 3,510.53	5,642.44 2,842.12	21,485.93 13,787.05
Finance costs	416.55	489.20	344.48	1,573.94
Depreciation and amortization expense	318.66	267.51	259.41	1,109.57
Profit before tax	1,996.30	2,753.82	2,238.23	11,103.54
Tax expenses
(1) Current tax	721.09	608.59	817.46	3,645.73
(2) Deferred tax	(14.52)	(110.73)	40.21	(67.61)
	706.57	497.86	857.67	3,578.12
Total tax expenses (1+2)		2,255.96	1,380.56	7,525.42
Profit for the period (V-VI)	1,289.73
Other comprehensive income (net of tax)	15.38	14.69	(0.74)	61.50

Q1 Financial performance

Thermal wear

Others

Revenue break-up for F.Y 18-19

Men's innerwear

Brand

46.5 % Dollar Bigboss	9 % Dollar Missy	0.5 % Pepe	1 % Champion Kids	5 % Force Go Wear
2 % Force NXT	36 % Regular
Product segment
89 %	9 % Women's	1 %	0 %	1 %

Kid's

innerwear and casual wear

Thank you

•Shashi Agarwal (Senior Vice President – Corporate Strategy & Investors Relation) •shashi.agarwal@dollarglobal.in