DOMS Industries (DOMS) Q4 20/21 earnings summary

Executive summary

• COVID-19 school closures sharply reduced FY21 sales; a V-shaped Q4 recovery brought stronger sales in February–March 2021.

• Consolidated revenue from operations was INR 4,047.45 million, down 38.11% YoY; net loss was INR 68.61 million versus net profit of INR 360.42 million.

Financial highlights

• Standalone revenue from operations fell 40.49% to INR 3,636.49 million; operating profit was INR 194.50 million versus INR 690.58 million, and net loss was INR 103.99 million.

• Consolidated operating profit declined to INR 304.26 million from INR 767.95 million; EPS was INR (184.19) versus INR 967.52.

• Standalone EPS was INR (279.15) versus INR 889.70.

Outlook and guidance

• FY22 priorities include expanding fine art and modelling materials, and investing in capacity for adhesives and writing pens.

• The second COVID-19 wave negatively affected operations in Q1 FY22; management expected no major change in economic activity, citing improved preparedness for a potential third wave.