Dollar Industries’ net profit in the quarter ended December 2023 dropped nearly 80 per cent to ₹9 crore against ₹44 crore same period last year.

Revenue from operations on standalone basis was down by nearly 25 per cent to ₹285 crore during the quarter under review against ₹381 crore in Q3 FY22.

Gross margin for the quarter stood at 30.12 per cent against 34.2 per cent last year.

The shift in seasonality and cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high cost inventory had adversely affected the Q3 sales and margin, said Vinod Kumar Gupta, Managing Director, Dollar Industries.

“But now things are getting stable and channel inventory has also been reduced due to low volume offtake by the business partners in this quarter. High inventory cost has also been optimised. With these, we are expecting a good demand in due to early festival sales in quarter four. Our marketing spends have also been optimised and we don’t have any major campaigns in the coming quarter,” Gupta said in a press statement.

To strengthen its product portfolio, Dollar Industries has launched a new range of products in the women’s segment and active wear in the premium segment. Recently, it has launched Dollar Raincoat to boost sales in coming quarters.

The company’s scrip closed at ₹349.15, down by 2.42 per cent on the BSE on Tuesday.