Earnings call transcript: Doms Industries Q1 2025 earnings beat expectations

Doms Industries Ltd. reported a strong performance for the first quarter of fiscal year 2025, with earnings per share (EPS) of $9.40, surpassing market expectations. The company also achieved consolidated operating revenues of INR 562.3 crores, marking a 26.4% increase year-over-year, maintaining its impressive revenue growth trajectory of 24% CAGR over the past five years. Following the earnings announcement, Doms Industries’ stock rose by 7.19%, reflecting investor optimism. With a market capitalization of $1.66 billion, the company maintains its position as a prominent player in the Commercial Services & Supplies industry.

Key Takeaways

• Doms Industries’ Q1 2025 EPS of $9.40 exceeded forecasts.
• Operating revenues increased by 26.4% year-over-year.
• The company’s stock surged by 7.19% post-earnings.
• Strong domestic and international market demand was noted.
• Expansion plans and new product launches are underway.

Company Performance

Doms Industries demonstrated robust growth in the first quarter of 2025, driven by a significant increase in operating revenues and effective cost management. The company’s expansion into new product categories and markets has bolstered its competitive position. The acquisition of Superdress Private Limited is expected to enhance production capacity, particularly in paper stationery.

Financial Highlights

• Revenue: INR 562.3 crores, up 26.4% year-over-year
• Earnings per share (EPS): $9.40
• Consolidated EBITDA: INR 98.7 crores, up 14.3% year-over-year
• EBITDA Margin: 17.6%
• Profit After Tax: INR 59.1 crores

Earnings vs. Forecast

Doms Industries reported a revenue of INR 562 crores, exceeding the forecasted INR 545 crores, a surprise of 3.12%. The EPS of $9.40 also surpassed expectations, highlighting the company’s strong financial health and operational efficiency.

Market Reaction

Following the earnings announcement, Doms Industries’ stock experienced a notable increase of 7.19%, closing at $2503.2. This positive movement reflects investor confidence in the company’s growth prospects and strategic direction. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a P/E ratio of 66.91x and high EBITDA valuation multiples. The stock’s performance is particularly impressive given its proximity to the 52-week high of $3115. Investors seeking detailed valuation insights can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s exclusive research reports.

Outlook & Guidance

Doms Industries maintains a growth guidance of 18-20% for the fiscal year 2026, with an EBITDA margin target of 16.5-17.5%. The company plans to increase its workforce and expand its distribution network. New product launches in the Hobby and Craft and Baby Hygiene segments are expected to drive future growth. For deeper insights into Doms Industries’ growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top stocks with expert analysis and actionable intelligence.

Executive Commentary

Rahul Shah, CFO, expressed optimism about the company’s demand scenario, stating, "We continue to be very positive about the demand scenario." He emphasized that the strategic efforts are laying a strong foundation for medium to long-term success.

Risks and Challenges

• Potential tariff increases in the US market could impact profitability.
• Supply chain disruptions may affect raw material availability.
• Increased competition in the stationery market poses a risk.
• Currency fluctuations could affect international sales.

Q&A

During the earnings call, analysts inquired about the company’s export strategy and capacity utilization challenges. Executives addressed concerns regarding raw material sourcing and provided insights into expansion plans and market opportunities.

Full transcript - Doms Industries Ltd (DOMS) Q1 2026:

Conference Moderator: Ladies and gentlemen, good day, and welcome to the Q1 FY ’twenty six Earnings Conference Call of Doms hosted by ICICI Securities Limited. Before we begin, a brief disclaimer. The presentation which Doms Industries Limited has uploaded on the stock exchange and their website and the discussions during this call contains or may contain certain forward looking statements concerning DOMS Industries Limited’s business prospectus and profitability, which are subject to several risks and uncertainties, and the actual result could materially differ from those in such forward looking statements. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to mister Anirudhajoshi from ICICI Securities Limited.

Thank you, and over to you, sir.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited: Thanks, Shruti. On behalf of ICICI Securities, we welcome you all to Q1 FY ’twenty six Results Conference Call of DOMS Industries. We have with us today senior management represented by Mr. Rahul Shah, Chief Financial Officer. Now I hand over the call to Mr.

Rahul Shah for his initial comments on the quarterly performance, and then we will open the floor for question and answer session. Thanks, and

Rahul Shah, Chief Financial Officer, Doms Industries Limited: over to you, Rahul Bhai. Thank you, Ariguchi. Thank you, Pradeep. Good morning, everyone. It is a pleasure to welcome you all to the earnings conference call for the first quarter ended June 3025.

Joining me on this call is the team from Marathon Capital, our Investor Relations Adviser. I hope everyone had an opportunity to go through the investor presentation and the results release that have been uploaded on the exchanges and our company’s website. Our results for Q1 FY ’twenty six reflect a sustained growth trajectory with continuous positive momentum in sales. This performance also reflects the enduring benefits from our timely capacity additions, strategic initiatives and the deepening trust in our brand DONGs. During the quarter, we witnessed growth across our balanced and diversified product portfolio, supported by renewed positive sentiment in the domestic market and encouraging international demand trends.

During the quarter, we have continued to expand our product portfolio with introduction of new products across all our product segments. Notable additions were made in our core categories of Scholastic Stationery, Scholastic Art Materials, Kits and Combo Pads, Paper Stationery and Office Supplies. We have also witnessed encouraging response for the new products introduced in the Hobby and Craft segment, Baby Hygiene segment and the Back to School segment. Further, we successfully completed the acquisition of Superdress Private Limited, strengthening our delivery capabilities in the Eastern region of the country and enhancing our paper stationery production capacity by getting us closer to our customers in that region, allowing us to capture larger market share in the paper segment. We remain steadfast in our pursuit of growth and are progressing steadily on an expansion trajectory with our 44 ACL project positively on track, featuring timely construction milestones, including the delivery of building by end of Q3 for installation of plant and machinery.

This complemented by a timely brownfield expansion initiative within the adjoining areas as well as the new land and building purchase during March April 2025 will help us increase capacity, positioning us strongly to capitalize on the retail demand for our products. Export of our own brand products have also contributed positively to our growth with our existing markets responding favorably to our product offerings. Our partnership with CELA for international distribution is also gaining traction with promising feedback from markets where we are leveraging their network for distribution of DOM branded products. We would like to thank our consumers and channel partners who have been our driving force, continuously inspiring and motivating each and every one of us. We continue to work towards strengthening our connect with our consumers and are proud to have grown our YouTube family to 3,000,000 plus subscribers and our Instagram followers reached over 100,000 followers.

So it’s showcasing our strong social media engagement. Our channel partners have also been instrumental in our growth, effectively showcasing our products to our consumers. We are optimistic about the domestic demand on the back of growing optimism around consumption driven growth. While we remain watchful of external uncertainty, we are positive about the optimism in the international markets for TORM’s products. Our strategic efforts lay a strong foundation for medium to long term success.

And moving forward, we’ll continue to focus on our core strengths of broadening our product portfolio, boosting our production capabilities and profitable growth. Now coming to the details of our financial performance for quarter ended 06/30/2025. Consolidated operating revenues for Q1 FY ’twenty six stood at INR562.3 crores, a result of nearly 26.4% compared to the same quarter last financial year. This increase in sales was predominantly on account of volume growth, aided by marginal increase in average selling prices due to change in product mix. Sequentially, too, we saw growth in our operating revenues.

Operating revenues grew by 10.5% from INR508.7 crores in Q4 FY ’twenty five. This growth is attributed to increase in volume due to capacity additions and the growth in export sales. The consolidated EBITDA for Q1 FY ’twenty six grew by 14.3% to INR98.7 crores as compared to INR86.4 crores in Q1 FY ’twenty five. The EBITDA margin for the quarter stood at 17.6%. Profit after tax for the quarter stood at 59.1 crores with 10.5% PAT margin.

This performance alongside EBITDA margins of 17.6 trending towards the upper end of our guided range of 16.5% to 17.5% demonstrates the strengthening of our business model and our ability to maintain operational efficiency. During the quarter, we have done a CapEx of approximately INR70 crores, including capital advances, and full year CapEx is expected to be in the range of crores to INR225 crores. These investments were primarily towards purchase of additional land building adjacent to our current flagship plant, ongoing construction activities for the 44 acre project and purchase of plant and machinery across different product segments. These investments are expected to drive growth in the current and upcoming financial year. As mentioned earlier, our performance for the quarter was in line with our expectations and we believe that we will be able to achieve our growth guidance of 18% to 20% for FY 6.

With this, I would now request to open the floor for question and answer. Thank you.

Conference Moderator: Thank you very much. We will now begin the question and answer session. The first question is from the line of Sneha Tal Talreja from Nuwama. Please go ahead.

Sneha Talreja, Analyst, Nuwama: Relations team and we have set of new numbers. Just couple of questions from my end. I wanted just to understand what would be our share of exports from The US? And are you seeing any impacts on the tariff side or from the items to low ticket item to basically see any impact? Any color on this would be helpful.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Hi, Sneha. So Sneha, basically our exports to U. S. Is roughly about 5.5% to 5.8% of our gross sales. The current tariff on one of the core products that we export to U.

S. Is about 6.5%, which is now expected to grow to about 50.65% once the additional 25% tariffs also kick in. But considering the sales is only about 5.8% of our total sales, we do not see any significant impact of sales to U. S. On our overall sales.

The potential decline in sales to U. S, we believe shall be offset by an increase in export to other countries where DOMS is witnessing growth, growing brand acceptance. Also, are positive about the demand scenario in the domestic market. And hence, we do not see a significant negative impact of U. S.

Tariffs on our business performance.

Sneha Talreja, Analyst, Nuwama: Understood, Rahul. Thanks for that. Secondly, just wanted to understand, of course, believe in conservatively guiding. And in this particular quarter, what we’ve seen is you’ve grown by 26% against your guidance of 20%, and your margins have also come in against 17.6% against, you know, fifth 16 and a half to 17 and a half that you guide for. Do you think any reason of, you know, revising this upwards?

Along with this also, you you know, in your opening remarks, you highlighted that, you know, market around is uncertain. Could you explain how it is it in terms of demand? And how are you able to get this amount of pull in the market? Thanks for this.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So, Sneer, we mentioned that we are uncertain about the export markets considering the especially with respect to U. S. But otherwise, at the domestic in the domestic market, we are seeing positive demand scenario being built out for our products. So we are confident that we’ll be able to achieve our guided range in terms of overall sales growth to about 18% to 20%. This quarter, particularly, you see the growth numbers being a little higher is primarily on account of Uniqlaine acquisition, where in the base quarter previous year, the Uniqlaine numbers were not consolidated.

And in terms of margin, we’ve always believed that the range of 16.5% to 17.5% is something which we are confident of achieving and therefore would continue with this guidance range at least for a quarter or so more Once we have a little more visibility of how the year is progressing, then if required, so we’ll reuse it as guidance. But as of now, like I said, we are confident of achieving our FY ’twenty six range of sales growth range of 18% to 20% with EBITDA margins of 16.5% to 17.5% and TAC margin of 10% to 10.5%.

Sneha Talreja, Analyst, Nuwama: Understood. Thanks, Rahul. That was helpful. All the best team.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Thanks, Niya.

Conference Moderator: Thank you. Our next question is from the line of Aradhana Jain from BNK Securities. Please go ahead.

Sneha Talreja, Analyst, Nuwama: Hi. Thank you for the opportunity, and congratulations on the good set of numbers. Couple of questions from my end. First, I wanted to understand what is the reason for the muted performance in Scholastic Stationery and the Scholastic Art category? I mean, we’ve added capacity, I believe, these two categories.

In spite of that, there’s been a muted performance across both these. In fact, in the last quarter also, there was a de growth. So what is the reason behind that? That’s my first question.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So hi, Araguna. Good morning. Araguna, basically, if you see Scholastic Stationery has shown a low growth of about 2%, while scholastic art when compared to the previous year same quarter has been flat. There are primarily two reasons for this. First and foremost, there has not been any significant capacity addition in these categories that could drive increase in volumes and thus growth.

Second, as we mentioned in our previous discussion also, the performance of Scholastic Stationery and Scholastic Art should be evaluated along with the performance of kids and combo segment as well. If you see the sales of kids and hospital, this was 52% compared to FY ’twenty first quarter FY ’twenty five. And if you combine the overall loss, the spread is

Conference Moderator: Sorry. Sorry to interrupt, sir. Sorry to interrupt, Rahul, sir. Your voice is muffled. Your voice is dropping.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Okay. Can you hear me now? Is it better?

Conference Moderator: I can hear you. Yes. Yes. It’s better. Please go ahead.

Yes. Repeat. Thank you.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So, Arun, if you combine the overall gross sales of Scholastic Stationery, Scholastic Art Materials and Kits and Combos together, Q1 FY ’twenty five, these three segments accounted for around INR347.2 crores of gross product sales, while compared to INR369.5 crores of gross product sales in the current quarter, which is a growth of roughly 6.4%. But like I said earlier, there has been not any substantial capacity additions in this segment. And hence, the growth has been a little lower than the overall growth in sales.

Sneha Talreja, Analyst, Nuwama: So do we expect capacity addition during this year, the INR210 crores, INR250 odd crores of CapEx that you’re planning to do, will that also lead to some addition in this category in terms of capacity?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Yes, definitely. Like we’ve mentioned earlier, we are in the process of increasing the capacity of our core product, which is wooden pencils. Like we mentioned earlier, the capacity wooden pencils is a slightly complicated manufacturing process where you need to add capacity that should be different processes, significant processes. Out of that, we’ve already done the additions for two of the processes. Now the only capacity additions pending to be done completed is for finishing of the pencils.

This is expected as soon as the first building from our 44 acre project is handed over to us, so which is expected by Q3 FY ’twenty six and about ninety days from thereon to start the commercial production. So, we are targeting to at least have the new we see substantial capacity addition coming in wooden fences, which will drive growth of this segment.

Sneha Talreja, Analyst, Nuwama: Understood. Just two more questions from my end. One is on the office supplies. That’s grown phenomenally at like 77% year on year. How much of the contribution in the office supplies has been because of Pence?

And within Pence, what is the revenue mix of INR 5 and INR 10?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Arana, while we discuss on a very granular detail, but yes, in the Office Supply segment, the key growth drivers have been Fence. Along with that, we are also seeing a positive response to the range of highlighters that we’ve launched under this segment. Both these products are driving growth of the Office Supply segment with some more capacity additions coming in this financial year also in this segment. We believe this segment to continue to perform well for us. And in terms of the price point, we continue to sell major BR10s at the INR5.0 MRT segment, but there have been new SKUs which are launched in the INR10 segment as well.

Sneha Talreja, Analyst, Nuwama: Understood. And just last bit from my end on the Uniclion business. Just wanted to understand the seasonality aspect of that business a bit more. I mean, the business was not there in the last year or this quarter, but there’s been a sequential decline in the revenue growth in this quarter. So given that monsoon came early, wouldn’t that have led to better numbers, like given that winter was the reason for fourth quarter to have done well for Uniclang?

Similarly, wouldn’t first quarter as well should have been good from that aspect? And secondly, in terms of EBITDA margins that we were to see for UnitLAN, what would be the steady state EBITDA margins that we can consider? Because last year, again, like last quarter, it was around 8.5%, 9% to closer to those numbers. This year, it’s closer to a 7%. So on a steady state basis, what could be the margins to be considered?

Yes, that’s it from my side.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Yes. So, Umicron clocked in revenues of about INR36.1 crores in Q1. Q1 is structurally a weak quarter for diapers. But as you mentioned, because the onset of monsoon was a little earlier, Definitely, we saw a little bit of positive due to that aspect on our baby hygiene business. While Q1 FY ’twenty five sales of UniqlEN were not consolidated, But if I could just share some light on it, we’ve grown our business compared to Q1 FY twenty twenty five by about 40% in UniGlen.

This has been because of both some capacity additions that have happened, especially in the wet wipes segment, which was commercialized in Q4 FY ’twenty five as well as season setting in a little earlier in some parts of India. Both these factors helped in achieving higher growth for Uniqlient on a quarter over year on year basis. And from an EBITDA margin perspective, we still believe that this business, the right EBITDA margin for this business would be 8% to 9% because right now the focus would definitely be on ramping up sales and the distribution network. I will be comfortable with the company doing about 8% to 9% EBITDA margin for the full year basis.

Sneha Talreja, Analyst, Nuwama: Understood. Just one last question on this distribution network bit. So on a sequential basis, if I look at your Uniclion brands network, there’s been a decline in the retail outlets and the sales personnel number on a sequential basis. Any reason for that? And what could be the aspiration for the full year in terms of reaching out in terms of the retail outlets for Unicline?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Arun, at Unicline, like I said, we are in the process of building a distribution, a robust domestic distribution network for UniPlan, there has been some distance taken by us to right size the network, ensuring that effectively these are consumers. The focus has been more on driving more secondary sales than just primary sales. So it is a process that we are doing right now. So there will be some rightsizing also that might happen in terms of the sales team as well as our distribution and retail outlet reach. But we believe this to grow gradually.

Some from existing channel parts of our stationary segment have already been appointed as channel partners for the hygiene segment also. So, slowly, we’ll focus on strengthening this network, but it will be a gradual process. We would not want to put any sort of target in terms of where we want to reach because we’ve never followed that even for DOMs. We just want to maximize the throughput to each of our channel partners before getting into that number game of increasing the channel strength.

Sneha Talreja, Analyst, Nuwama: Understood. This was helpful. I’ll join back in the queue. Thank you.

Conference Moderator: Thank you. Our next question is from the line of Janesh Joshi from PL Capital. Please go ahead.

Janesh Joshi, Analyst, PL Capital: Thanks for the opportunity. Sir, I have a question on our revenue mix. If I look at the Northern Belt, I mean, historically, the contribution used to be at around 30% plus. But in this quarter, it has come down to about 28%. So any specific reason for the fall to come through?

And also secondly, if I look at our MC channel, the revenue is up by about 90%. So just wanted to know, I mean,

Rahul Shah, Chief Financial Officer, Doms Industries Limited: have we

Janesh Joshi, Analyst, PL Capital: penetrated newer stores or is it that we are able to extract more throughput from these existing stores? Yes. So these two questions, please, if you can help them.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Hi, Dinesh. Dinesh, I heard the first part of the question clearly, which was why the proportion of sales from North India has come down. Second part, I couldn’t hear well. So let me first answer the first part of the question and then if you could please repeat the second part. Jitesh, basically, see what has happened is almost 35% of sales of Uniclens comes from e commerce.

And the company does all of this sales from their plant in Jaipur, Rajasthan. So all this sales currently gets absorbed in Western part of India. And that is the primary reason why you’re seeing the Western part increasing. Also certain merchant exports done by DOM have increased, which is also accounted in our factory sales from Gujarat. These are the reasons why Western region is showing stronger.

But otherwise, if you look from overall at the customer level, the sales are pretty much in line what they were previously where North accounts the highest followed by West and then South and East.

Janesh Joshi, Analyst, PL Capital: Intichannel growth, the modern trade channel growth.

Conference Moderator: Sorry to interrupt, Janesh, sir. Could you please repeat your question because you are not audible to us?

Janesh Joshi, Analyst, PL Capital: Yes, yes. Am I audible now?

Conference Moderator: Yes, sir. Now you are.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Please Yes. Go

Janesh Joshi, Analyst, PL Capital: So my question was on your modern trade channel growth, which has come up at about 90% in this quarter. So just wanted to know, have we kind of penetrated a newer stores or is it that the throughput from the existing stores has increased meaningfully?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So the year on year growth in modern trade e commerce, TwitchCommerce that you see is again linked to UniqlEN. In the base quarter, UniqlEN was not consolidated. And like I said, ’35 plus percentage of Uniclens sales comes from e commerce. That is the reason why you are seeing that the modern trade has grown significantly when compared year on year. So that’s the primary reason.

But having said that, modern trade e commerce, e commerce is something which within the stationary segment also is witnessing growth because our existing relationships, the demand for these products on these channels also continue to increase. So there is nothing other than that, that we’ve primarily seen degrowth in other segments and therefore focusing more on modern trade e commerce. It’s not that it’s just primarily on account of the UniqlEN acquisition.

Janesh Joshi, Analyst, PL Capital: Got Got that. And secondly, I mean, mentioned in your opening remarks that we have started selling branded products in sports markets via the distribution agreement with Pillar. So can you just talk a bit about the Sorry

Conference Moderator: to interrupt, Jani. Sir, could you please distant your device from yourself so that we can hear you clearly? Because your voice is sounding muffled.

Janesh Joshi, Analyst, PL Capital: Is it is it better now?

Conference Moderator: Yes, sir. Please go ahead.

Janesh Joshi, Analyst, PL Capital: Yeah. So the question was on the branded product sale in export markets via the distribution agreement with Fila. So I just wanted to know if you can just talk a bit about the opportunity tied towards here. I mean, was the Fila’s revenue when it was dealing in these markets on its own via white cabled products? Or is it a new market for Pela as well, whereby now we have got a lead to sell our own products versus their own products?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Jirej, the distribution agreement with Sela was is only for those markets where Sela has existing network infrastructure infrastructure and and are continuing to do business. So it’s not new markets for Sela also. These are existing markets. Like I said in the opening remarks also, we started selling ZOMS branded products in couple of markets where Sela is already present. But it’s still early days.

It’s where the goods have reached the destination countries and the marketing and sales activities have started. So we still need to understand the response from the end consumers, what it has been before we can say and think about what is the potential of the business in these regions. In terms of CELA doing sales in this market, honestly, we’ve not looked at those numbers because Dom’s products are not going to be competing with Phela’s products. They are basically we are selling in as a secondary brand along with the Phela brands where both the brands are going to be positioned differently. So it wouldn’t be correct to look at the opportunity for perspective of the sales that Fila is doing in the existing markets from Fila products.

This is going to help Sela also to expand their sales in these geographies.

Janesh Joshi, Analyst, PL Capital: Understood. Understood. So just one last question from my side. Given this quarter was the back to school season for us, I mean, is it possible to share what was the revenue window in 1Q FY twenty twenty six? And where are the trending in terms of the annual run rate so to say?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Jireh, absolutely not able to understand the question. Yeah. Okay. Okay. Thanks, Vinit.

Conference Moderator: Thank you so much. Our next question is from the line of Konal Vohra from BNP Paribas. Please go ahead.

Konal Vohra, Analyst, BNP Paribas: Yeah. Thanks for the opportunity, and good quarter already. On the pen business, what is

Parsi, Analyst, IAFL Securities: the market share you are

Konal Vohra, Analyst, BNP Paribas: at now? Is the competition reacting in any way to your market share gains? And at what level of sales would you expect a slowdown in the pen business?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Hi, Kuran, Varisham. Kuran, basically, are still a new entrant, relatively a new entrant in the segment. We started with the conventional ballpoint times about two years back. It’s been just two years, but we are happy with the response that we’ve got from a consumer, which has helped us scale up the business to a pretty decent level. But from a market share perspective, I don’t have the exact number, but my feeling is that we’ll be still lower.

We’ll be about 3% to 4%, which gives us a big runway to grow in this segment. We see the opportunity being there with the capacity additions that are expected to come in this segment coupled with our pipeline of the new products that we are going to launch. We are excited about this segment. And I think we’ll be able to grow our market share in this segment quite well.

Konal Vohra, Analyst, BNP Paribas: Understood, understood. Any reaction from the competition so far? And would you aspire for double digit market share here?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Aspiration wise, definitely. Dom has always, whenever we’ve entered any category, we’ve always entered with the intention of being amongst the top players. And for almost most of the categories that we are present today, we’ve achieved that feat. So not only in pens or office supplies, but in all the new categories that we are entering into that aspiration. And we hope we’ll be able to come through to our aspiration.

In terms of competition, Punalba, you studied very well as a company. We look more at ourselves in terms of where we want to be, how we want to be there. We really don’t look at what the competition is doing or not doing for that matter. We believe we should continue to focus on our own core strengths, which is product, product designing, product engineering. And if we bring the right product to our consumer at the right value, I think we’ll see success in all the segments that we are present and intend to get into.

Konal Vohra, Analyst, BNP Paribas: Understood. Second one is, can you talk about Hobby and Craft? There seems to be a sharp increase led by digital sales. How large is the market? Like whether we should expect the current run rate or a further acceleration?

How should we look at Hobby and Craft?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So, could I might leave Hobby and Craft basically for us constitutes of modeling material, craft material, glues, adhesives, gums. During the previous year, we had added capacity primarily in the Adhesives segment, introduced the product with a very differentiated sort of a product, which slowly, gradually is seeing positive response from the market. And hence, you see that the Hobby and Craft segment has grown significantly both from a compared to the previous year as well as sequentially. It’s difficult to get the size of the rest of the market because our focus there is mainly on Scholastic adhesives and glues. We don’t intend to get into the B2B Adhesives segment.

So that bifurcation is not available. But having said that, we believe in the Scholastic Adhesives segment, considering the differentiated product offering, our distribution reach within the stationary segment and our deepening trust from our consumers will help us to grow this business to a decent level.

Konal Vohra, Analyst, BNP Paribas: Understood. So there is no one off in this quarter and we should be building in further improvement in sales sequentially from here?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So yes, now the capacity utilizations are improving in this segment because there was new capacities that were added in the previous year and utilizations are improving. So we should expect this gradual increase in this segment as well.

Konal Vohra, Analyst, BNP Paribas: Understood, understood. And in terms of the new plant, I would assume that benefits will only start coming in the fourth quarter. So with that, what are the early estimates for how does FY 2027 look like? Because you’ll have continued new capacity additions coming in starting fourth quarter. So any thoughts on like how we should be looking at FY 2027?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Suraj, basically, we intend we target to have the first billing for the new plant happening in the fourth quarter. Real capacity addition impact on meaningful impact on sales will start building in from quarter one of FY ’twenty seven. So it would be a little too early to determine how much we would get benefits in FY ’twenty seven. But historically, we’ve tried to maintain our growth rates at that range about 18% to 20%. And given the capacity additions that are planned as well as the market sentiments, we believe that we should be able to reach that, but we’ll come back to you all with the proper guidance once a couple of quarters closes.

Konal Vohra, Analyst, BNP Paribas: Sure, sure. And lastly, domestic retail outlets, there was a slight dip last quarter this time. Looks like you added 10,000 outlets. Also you added 1,000 customers.

Parsi, Analyst, IAFL Securities: When I may

Rahul Shah, Chief Financial Officer, Doms Industries Limited: be a little honest here, the number which was given in the domestic distribution network for DOM, in the last quarter, there was a typo error in it. The number of retail outlets have been like I see also Q4 also and ’6.

Konal Vohra, Analyst, BNP Paribas: Understood. Understood. Okay. Yes. Okay.

Okay. Okay. That’s it from me. Thank you.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Thank you.

Conference Moderator: Thank you. You. Our next question is from the line of Jaivir Shekhawad from Ambet Capital. Please go ahead.

Jaivir Shekhawad, Analyst, Ambet Capital: Sure. Thanks a lot for taking my question. Rahul, my first question is with respect to office supplies. I think we have consistently seen the way you’ve grown the revenues there. Could you just talk about, in terms of distribution network, how well spread is that at the moment?

Have you covered all the retail outlets that you supply the rest of the stationery with via these office supplies? And then what kind of throughput increase do you expect from the existing distribution channel possibly by the end of the

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Hi, Prajav. We’ve not been able to still ramp up our sales in office supplies to the entire network. There are still quite a few regions where we are still to enter because we still have a constraint in terms of capacity. Once the new capacity additions, which are planned for the current financial year come into production, we’ll be able to ramp up our sales and distribution of writing instrument spends to the entire universe that we are servicing today, should happen once by the end of this year or probably with the new capacity that are planned for the coming year. If you could resolve the second half of the question?

Jaivir Shekhawad, Analyst, Ambet Capital: I think it was just in terms of the throughput increase that you expect from the same channel. So as per your understanding, will it be 50 of the channel that you’ve covered, 60%? Is there any number in your mind that you’ve covered in terms of distribution network?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: No, there is no specific number or a target in mind. It is going to be a gradual process. As and when the capacity additions happen, we want to increase our reach with the pens and a lot of other new products that we have launched. But definitely, the focus continues to remain on increasing our throughput in each of the current stores that we are present. So we will gradually start selling pens and other items, new products in these existing stores as and when new capacity comes.

Jaivir Shekhawad, Analyst, Ambet Capital: Sure. Sir, my second question was in respect to your Scholastic Stationery, Art Materials and Kits and Combos. So if I see sequentially, I think there has been a good growth that has come in. I was under the impression that there were not a lot of capacity that has been added on the Stationery and Art Materials segment. So has there been some outsourcing that has happened?

Or is there a demand pickup from those segments that have happened? Could you explain what has been driving that sequential growth versus the last fourth quarter to first quarter?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So sequentially, there’s a little bit of impact that happened because of the back to school season. So you tend to see a little more sales picking up in this the first quarter for these categories as well as what happened was certain export orders, which were partially ready in the fourth quarter were serviced in the first quarter. So there was this slight at a product mix level. When you see it specifically at a product mix level, this impact was seen. And also what you see sequentially kits and combos have done a little lower and individual items of Scholastic, Strictory and Ag material have done slightly better.

So these are the key reasons why you see the sales growing. It’s not that there have been any meaningful capacity additions that have come in.

Jaivir Shekhawad, Analyst, Ambet Capital: Sure. I think that’s helpful. Sir, last question is in terms of your new capacity expansion for the 44 acre one. So what sort of a headcount increase overall approach would you expect? And also the overall employee cost that you would expect possibly for the next year once it comes online?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So there is basically 44 acres is going to be a large project where eventually we’ll have operational area of about 1,800,000 to 2,000,000 square feet. When this entire project comes in, we believe we’ll require about 12,000 to 13,000 people similar to the workforce that we have right now. So it’s going to actually double once the project is completely operational, but it will be gradual rather than when new buildings come under production, you will gradually increase your workforce strength. Our employee cost right now is close to about 14%, we believe. And if you see historically, this number has been coming down slightly and that’s primarily because of economies of scale.

So that benefit will continue to get, but we will continue to have a large workforce also. So it’s going to be a significant cost for the company. Sure. Sure.

Jaivir Shekhawad, Analyst, Ambet Capital: Thanks a lot and all the best.

Janesh Joshi, Analyst, PL Capital: Thank you.

Conference Moderator: Thank you. Our next question is from the line of Anirudh Joshi from ICICI Securities Limited. Please go ahead.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited: Yes. So just two questions. So in terms of pen business, we see there is a vacuum at the medium end or the top end of the market. I mean, there are brands like Pilot or, to some extent Parker or Montblanc, but still there is a good amount of vacuum and potential to grow in the top end of the market too. So any strategy that Doms has got to, in a way, expand in this medium end or the top end of the market for pens?

That is one. And secondly, if you can indicate about the current distribution structure of pens and how it will shape up in, let’s say, FY ’twenty seven and beyond also? So that is question number one. And then question number two, the way DOMS is growing, obviously, means, like, literally doubling revenues in three years. So the company will definitely require a lot of investments in new management bandwidth as well as technology also.

So what is the strategy over here to invest in terms of the or strengthen the management as well as the strengthen the internal technology spends also. Yes, that’s it. Questions from my side.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Thanks, Anil Bai. So Anil Bai, firstly to answer your first question, if you look at dorms, you’ll appreciate that our primary customers, consumers are scholastic children and college students. And if you look at the demand or the products that they use is mainly your entry level 5.1 like rupees 5, rupees 10, rupees 20. So this is going to be the primary segment that we’ll be focusing on in the near to midterm. Going forward, we might it’s a little early to say when we will enter the premium segment.

And in the premium segment also at what price points, something like a Moblanc or something is like a very, very high price point pen, which is also sold in a very different sort of a distribution network. So our product strategy will revolve around our consumer business and our distribution channel where we are already present. So gradually, we’ll definitely move up in terms of introducing products at the higher price point. So INR 5 and INR 10 would predominantly be larger share in the overall sales. To answer the second part of your first question, in terms of the distribution of like I mentioned earlier, there are certain regions where we still not introduce the pens because of the constraints that we have in terms of capacity.

As and when new capacity additions come in, we’ll want to introduce this throughout the country. In terms of the distribution channel, these are sold in the same distribution channel where we are present right now. It’s going to be the same distribution network that we’ll leverage for growing our sales business further. Now to answer your second question, definitely with the increase in the production capacities, we are also mindful of the fact that we’ll require higher manpower, higher management bandwidth and active steps are being taken in terms of identifying people within the organization structure, taking them to a higher position to manage activities efficiently. Also what will happen is once you start having a larger manufacturing base in a single location, the efficiency of the people also improves because it’s easier to oversight the operation.

So we are in that process of continuously hiring some out as well as promoting people from within the organization based on their performance. And with respect to systems, that is something which is like an ongoing process. This is not only for the production activities, but even for market activities, even from a DMS and sales force automation software that we use. We are continuously enhancing all these systems to meet our requirements. The systems that we already use are something which is best available in the market.

For example, SAP for our as we have seen, it is a scalable platform with increasing overall turnover volume, these softwares will be able to scale up and the company continues to improving and enhancing the features of the existing systems to meet our requirements.

Konal Vohra, Analyst, BNP Paribas: Our

Conference Moderator: next question is from the line of Parsi from IAFL Securities.

Parsi, Analyst, IAFL Securities: Rahul, congrats on a good set of numbers. My question is on the 44 acre land. What is the total CapEx that you have done till date, let’s say, of June? What is the total CapEx? It might not be showing up in the gross block because it might be in CWIP, but what is the total excluding land, the gross block plus CWIP, if you can tell me, for the 44 acre plant?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So first of all, what we would have done for the 44 plant can be bifurcated into two parts. One is for the construction activities and the other is for ordering of plant and machinery. And some of those plant and machinery, we’ve also got in our factories and started production at some alternative location in between. But having put all together, the CapEx that we would have done for this would be close to INR150 crores.

Parsi, Analyst, IAFL Securities: Okay, got it. And how much more will happen in the next nine months?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: The total CapEx outflow that we planned for this financial year is about INR210 crores to INR225 crores. Out of this, like I said, we’ve already invested about INR70 odd crores. The balance of about INR160 crores to INR160 crores predominantly go into the 44 acre project.

Parsi, Analyst, IAFL Securities: Okay. So by the end of this year, we would have invested about INR 300 crores in the 44 acre project. Do you expect this entire INR 300 crore to be capitalized or there would be still a material part in CWIP?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: No, there will still be a material part in CWIP because there are multiple buildings which are being constructed together. So only the buildings which will get possession that will be capitalized one by one. The way the entire project is planned, Percival, is once we get the possession of the first building, we would want to get the possession of the next building in another three months because that is the time that we will require the ninety day period in between two possessions to set up the commercial production of that particular first building. So the way the activities are planned is every quarter keep getting 111 buildings and that is why not everything would get capitalized.

Parsi, Analyst, IAFL Securities: So what I’m trying to understand is that like how much turnover you can generate from the new plant in FY 2027? So let’s say about INR 150 crore or INR 200 crore will be, let’s say, capitalized by the end of this year, putting a 3x sort of asset turns on that, can we say roughly about INR 500 crore can be at least from supply side, demand side is a different thing. But from a supply side, you are prepared to supply INR 500 crore worth of products in FY ’twenty seven from the new plant. Would that be a fair estimate?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So personally, is also happening is in the new CapEx that is happening for 44 acre, a lot of CapEx is happening towards the building of the utilities and infrastructure for the entire plant. So let’s say utilities in terms of power and all, the entire as soon as we start using power, we’ll capitalize the entire amount that has been invested. But this is mostly it’s been invested in that size and extent, which will fulfill the requirement of the entire project. So on that, you will not be able to see like a 3x on the year first also, year one also. So it wouldn’t be like 3x.

Eventually, we would want to reach like a 3x sort of a number. But to start with, I think it would be fair to assume we’ll start with like a 2.25 and gradually move towards 3x. This is When just a new there is existing projects where we continue to do capacity addition in terms of modernization, like in the April and late March twenty twenty five, you added some infrastructure also. So all these things would aid in terms of achieving our growth target for FY ’twenty seven.

Parsi, Analyst, IAFL Securities: Understood. No, the only reason why I’m asking, no, because when at the time of IPO, we had come to the plant, our understanding was that already the old plant is very near sort of reaching full capacity. And even the empty spaces in the new plant was not that much that we can do a lot of greenfield in the sorry, old plant, I’m saying. We did not see that much empty space that there can be huge amount of greenfield in the old one. So just concerned that if basically the new plant does not start contributing soon, then will there be a capacity constraint to growth?

Because we need by FY ’twenty seven, FY ’twenty eight, we need, let’s say, INR $4.50 crores to INR 500 crores of I mean, at least INR $4.50 crores of additional turnover on a Y o Y basis. We need that to come. And assuming that the 26 acre plant does not have much more in terms of expanding capacity, that will have to come from the new plant only, right?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So basically, first thing, your plant visit is now due. You should come to the plant sooner because what happened from the time of the IPO till now, adjoining our current flagship plant where you visited during the IPO, we were able to acquire more states, some on lease and a large portion we purchased. Plus in March, we were also able to purchase land in GIDC very close to our existing plant, which has a ready building of about 120,000 square feet. Right now, we are just doing some renovations and changes there, which are required for our systems. So all this is also going to aid.

So it’s not that during from the IPO till now, the CapEx has happened only towards 44 acres. There have been capacity additions that have happened at other parts also plus in our subsidiary companies Pioneer, we’ve added production of paper stationery capacity. When you visited Pioneer, you would have seen two lines of automatic book manufacturing companies that has almost doubled. Last week acquired SuperTrend recently where we are getting more capacity, which will help us in increasing our paper stationery business also. So every it’s planned when I’m saying that we will aspire to continue growing at this level going forward also.

So for that, the required CapEx and planning already happened. So probably my request to you would be to plan a planned visit very soon, so that you could also see in addition to the Fortify April project additional enhancements and increase that we’ve done from a physical infrastructure perspective.

Parsi, Analyst, IAFL Securities: Understood, Rahul. Very helpful. And last question from my side is, can you tell me what is your capacity utilization in paper stationery and in pens?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: First of all, our capacity utilization is something which we don’t drag on from that perspective because paper stationery, for example, is slightly sort of a seasonal business. So and plus it’s a very modernized, fully automatic manufacturing process, which during season time, we operationalize for additional time also. In the Pen segment, like I said, we continue to remain constrained with capacity. And so we are utilizing what we have right now. And but there are capacity additions, which are already planned, which are gradually coming.

Hello? Hello?

Parsi, Analyst, IAFL Securities: I think we lost Rahul. No, sir. No. We have Rahul’s

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Can you hear that?

Parsi, Analyst, IAFL Securities: Yeah. Sorry, Rahul. I could not hear you. Yes. Please continue.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Yeah. So, Prativay, like in paper, especially, I explained that capacity additions came in, and it’s a slightly seasonal business. So once the new season starts, I think we’ve got enough capacity to meet the anticipated targets that we have for that segment. And for Pence, our utilization would be near optimum right now, but there are new capacity additions, which are happening as we see. So every quarter, see some capacity additions happening in our existing infrastructure for the PEM segment also.

And when I say existing, it means what you visited plus what we acquired adjacent to our current operations.

Conference Moderator: The line for the current participant has been disconnected. Our next question is from the line of Priyank Chedha from Valum Capital. Go ahead.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: I

Priyank Chedha, Analyst, Valum Capital: just had a question, if we can call out the volume growth and the ASP for the core stationary business like we mentioned in the last Yes,

Rahul Shah, Chief Financial Officer, Doms Industries Limited: sorry, we cannot hear you well.

Priyank Chedha, Analyst, Valum Capital: Hello, am I audible?

Akash Shah, Analyst, UTI Mutual Fund: Sir, are audible.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: The line is not very clear.

Priyank Chedha, Analyst, Valum Capital: You Rolva, can you hear me?

Conference Moderator: Hello?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Can hear him well?

Conference Moderator: Yes, sir. I can hear him loud and clear.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So just read your question

Conference Moderator: slow so that management could understand it.

Priyank Chedha, Analyst, Valum Capital: Sure.

Conference Moderator: Priyank sir, yes, thank you. Please go ahead.

Priyank Chedha, Analyst, Valum Capital: Now my question is, would it be possible to call out the volume and ASP growth in the post stationary business for this quarter like we called out in the last quarter?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Praveen, very difficult to give from a overall perspective because right now, like you saw in this quarter, sequentially, if you see the volume of kits and combination tag, the value plus volume has come down a little because being a back to school season, a lot of individual demand for individual products increases a little. And we have that flexibility in terms of meeting the requirements of the market accordingly. But having said that, the majority of the sales growth that you see sequentially at the overall level is predominantly because of volume growth with some part being aided by reason average selling prices.

Priyank Chedha, Analyst, Valum Capital: Very clear. My second question is on the expansions in the existing plot area, not the new 44 acre land. We were coming up with a pencil expansion from I think 5,500,000 per day to 8,000,000. By when is that expected? And as well as if you can also touch upon the books capacity addition that we were planning to add another 15% capacity over there, the pens capacity also we were planning to add by 50%.

So what is the status of all those capacity expansions outside the 44 acres, if you can call out will be helpful?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Basically the 10 capacity additional like you rightly said is expected to increase from 5,500,000 to 8,000,000. Some of the parts in that expansion have already happened. The finishing from where we’ll be able to make the finished product is something which will happen in ’6 and Q1 to ’7. So probably by same time next year when we’ll be talking, we’ll see a substantial part of this capacity addition coming in. In terms of pens, like I mentioned earlier, there are capacity additions that are happening as we speak and this is going to be a gradual process.

But you should remember that a lot of our capacities, especially at the molding part is very fungible. So depending upon the market dynamics and requirements, we will adjust ourselves to the requirements of the market. But in addition to pens and fences in the new expansion, we believe we’ll be adding a lot of capacity for other aspects of the Writing Instruments segments like markers, highlighters, some of the pencil accessories like erasers, sharpeners. So across the board, as and when we’ll gradually keep getting additional infrastructure, we’ll keep adding capacity looking both in terms of the demand of the market both in India as well as internationally.

Priyank Chedha, Analyst, Valum Capital: Got it. So for pencil, which is Polastic Stationery till the time

Conference Moderator: to interrupt, Priyank, sir. We have lots of people in the queue waiting. I request you to rejoin

Rahul Shah, Chief Financial Officer, Doms Industries Limited: the queue. Thank you.

Conference Moderator: Question. Thank you so much. Our next question is from the line of Akash Shah from UTI Mutual Fund. Please go ahead.

Akash Shah, Analyst, UTI Mutual Fund: Hi. Hi, sir. Am I audible?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Hi, Akash. Good morning.

Conference Moderator: Yes, sir. You’re

Akash Shah, Analyst, UTI Mutual Fund: audible. Yeah. Sir, thank you. Thank you for the opportunity. Sir, just wanted to ask what are the key risks that you are worried about in the business?

I mean, we understand certainly the growth potential as well as healthy margins. But sir, I mean, what are the key risks that you see and how you mitigate those?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Atash, basically, we’ve answered this question earlier as well and probably our response continues to be the same where we believe that the key foremost risk that we see in the business is our ability to timely increase our capacity. We believe that the market and the demand both in India internationally is strong for our products And we would want to capitalize on this demand as best as and efficiently as possible. And this will be we’ll be able to achieve this only if there is timely capacity additions that happen. So this in our view continues to be the foremost risk that we see in our business.

Akash Shah, Analyst, UTI Mutual Fund: Sure, sure. Sir, and on demand trend, you are reasonably confident that market will be able to absorb the incremental capacity that we are going to come up with?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Yes. We continue to be very positive about the demand scenario. TORM’s as a brand continues to see increasing acceptance not only in India, but in international markets also. So as soon as our capacities increase, we’ll be able to service that demand better. So demand doesn’t seem such work to be a challenge right now, but it’s more of when we’ll be able to service that demand and that’s where the capacity additions will come in handy.

Akash Shah, Analyst, UTI Mutual Fund: Sure. Thank you. Thank you, sir.

Conference Moderator: Thank you. Our next question is from the line of from Wealth Guardian. Please go ahead.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Hello. Am I audible?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Yes, ma’am. You’re audible.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Please go ahead. Congratulations on a good set of numbers. So, basically, I just wanted to know, recently, there was a news. There was a shortage of popular wood that is the primary raw material for wooden pencils. Are we facing any sort of shortage?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: As of now, as we speak, sir, not really. Just that when there was some warlike situation because the valley was entirely shut that time, we did face some challenges. But as we’ve always been paid for some key raw materials, which we believe are sensitive to our business, we have significant stocks, sometimes as high as six months of production requirement in stock. So we are not seeing any challenge. And plus, we believe that the product, the cold blood work that we use, which comes from the Kashmir Valley region, where a lot of government initiatives have been taken to empower the farmers there to farm this cultivated wood.

So we believe that supply should would not be a challenge. And also in terms of our pencil, there are different types of wood that we use. Poplar is definitely one of them. There is Batsa wood also that we use, which comes from Southern part of India. There is also BaaS wood, which we import from Europe.

So there are multiple purchase destinations also which are there. So we do not see that as a challenge right now.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Okay. That’s helpful. The second question was related to bags because since after introduction, this was the first year where we have introduced bags. So what is the demand scenario, and how how how we have conquered that?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: So, first of basically, launched the DOMS branded bags in time for this back to school season. It was started with minimal sort of product offering because like I said, we still want to test the markets to understand what products work. Bags in terms of SKUs are always defined in terms of their volume capacity, plus number of zips, number of sections holders that they have. So we’ve introduced multiple SKUs. We are getting feedback what is working, what changes they would like to see in terms of the product.

We are getting feedback also from encouraging feedback from retailers where they’re saying they want the product packaging to be changed a little, so they can probably sell tags also as a gifting article. So we’re getting those feedback. We are working on it. We are trying to improve our SKUs further. So this business also will continue to grow.

I think a couple of years more from where, then we’ll be able to grow substantially the back to school segment.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Okay. Okay. Okay. And lastly was so we are assisting Pella in terms of sourcing quality products at competitive prices. So are these raw materials or the products that DOMS make?

Rahul Shah, Chief Financial Officer, Doms Industries Limited: This is product that DOMS manufactures and sells to group companies across the world.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Any raw material sourcing for them. Right?

Priyank Chedha, Analyst, Valum Capital: No, no, no. We

Rahul Shah, Chief Financial Officer, Doms Industries Limited: don’t do that trading sort of a thing like buy here and sell to see that. There might be certain times where for testing purposes and sampling purposes, we would have done it, but it’s not like a business segment or anything like a key business driver.

Anirudhajoshi, ICICI Securities Representative, ICICI Securities Limited0: Okay. Thank you so much and all the very best.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Thank you.

Conference Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.

Rahul Shah, Chief Financial Officer, Doms Industries Limited: Thank you, everyone. On behalf of Bounce, I would like to thank you all once again for joining us on this call today. We hope we’ve been able to answer your queries. Please feel free to reach out to our Investor Relations team for any further clarification of queries that you may all have. We’d also request all of you all to probably make some time out to visit our facilities in Umergaon to see what new additions and new infrastructure is being built up there.

Once again, thank you so much. Wish you all a good day. Thank you once again.

Conference Moderator: Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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