DOMS Industries shares surge, hits all-time high on stellar Q1 results

The stationery company reported a 49.5 percent YoY increase in net profit in Q1FY25

Shares of DOMS Industries surged more than 4 percent to an all-time high of Rs 2,545 on August 13, following a robust performance in the April-June quarter (Q1FY25). Since its listing seven months ago, the stock has more than tripled, soaring over 200 percent from its IPO price of Rs 790 per share.

The stationery company reported a 49.5 percent year-on-year increase in net profit, reaching Rs 54.3 crore in Q1FY25, compared to Rs 36.3 crore in the same period last year. Consolidated revenue from operations rose 17.3 percent year-on-year to Rs 445 crore in Q1FY25.

This growth led to a 17.3 percent year-on-year increase in EBITDA, reaching Rs 445 crore for the quarter ending June, with margins expanding sharply by 300 basis points to 19.4 percent.

In Q1, scholastic stationery remained the company's largest product category, contributing 43 percent to revenue, followed by scholastic art materials at 25 percent, and kits and combos at 8 percent.

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Santosh Raveshia, Managing Director of DOMS Industries, commented, "The start of financial year 2025 has been promising, despite challenges from extreme weather conditions, particularly in North India during the June quarter. We continue to see strong sales growth and improved margins, reflecting our dedication to delivering exceptional value to our customers."

In other news, the company's board has acquired a 51 percent stake in SKIDO Industries, which is currently raising Rs 1 crore through a rights issue to address working capital and capital expenditure needs.

Additionally, the board has approved an investment of up to Rs 55 crore to acquire a 51.77 percent stake in Uniclan Healthcare by subscribing to and purchasing up to 71,16,080 equity shares of Rs 10 each. This transaction is expected to be completed by September 30, 2024.

DOMS Industries specialises in the manufacturing, marketing, trading, and distribution of school stationery and art materials under the brand names 'DOMS' and 'C3'.

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