18 February 2023, Mumbai
For the third quarter Dollar’s net profit reduced by 80 per cent compared to the same period of the last fiscal year. Revenue from operations was down by 25 per cent during the third quarter.
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, the company’s third quarter sales and margin were adversely affected.
However things are getting stable and channel inventory has also been reduced due to low volume offtake by 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 the fourth quarter. Marketing spends have also been optimised and the company doesn’t have any major campaigns in the coming quarter.
The innerwear and knitted garment brand based in Kolkata now has 12 exclusive brand outlets across India. The premium product now accounts for around 42 per cent of Dollar’s total turnover and the economy range is around 58 per cent.
Dollar’s flagship project Project Lakshya is doing well and has increased the share of revenue contribution in sales from seven per cent to 17 per cent. This has led the company to strengthen its sales force for smoother operations.
