Dollar Industries Limited (NSE: DOLLAR) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Ankit Gupta — President – Marketing.
Gaurav Gupta. — Vice President
Ajay Kumar Patodia. — Chief Financial Officer.
Unidentified Speaker
Analysts:
Sumant kumar — Analyst
Unidentified Participant
Vijay Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Dollar Industries Limited Earnings Conference Call. 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. Should you need assistance during the conference call, please signal an operator by pressing star 10 0 on your touchstone phone. Please note that this conference is being recorded.I now hand the conference over to Mr Sumant Kumar for the opening remarks. Thank you, and over to you, sir.
Sumant kumar — Analyst
Yeah, thanks. Thanks. Good afternoon, everyone. On behalf of Motilal Oswal, I welcome everyone to Dollar Industry 3Q FY ’25 earnings call. We have the pleasure of having with us the senior management team of Dolar Industry led by Mr Ankit Gupta, President Marketing; Mr Gaurav Gupta, Vice-President, Strategy; and Mr Ajay, CFO. Without further delay, I would like to hand over the floor now to Mr Ankit Gupta. Over to you, Ankit.
Ankit Gupta — President – Marketing.
Thank you,. Good afternoon, everyone, and a warm welcome to you all. Thank you for joining us today for the Dollar Industries Limited Q3 FY ’25 earnings investor call. Gaurav and I will walk you through the business and operational highlights of the quarter and the first-nine months of the fiscal year, while our CFO, Mr Ajay will share the financial metrics.
Before we delve into the financial results and operational highlights for Q3 and the first-nine months of FY ’25, I want to extend our sincere gratitude to our shareholders, analy
Sts and stakeholders for their and engagement are invaluable as we navigate the opportunities and challenges in our industry. Also, I would like to draw your attention to the safe-harbor statement in the earnings presentation. I request each one of you to go through the presentation either now or before the Q&A starts, so that you are aware of the same. Our operating income in Q3 FY ’25 stood at INR381 crores, mark marking a 14.8% year-on-year growth.
Over the first-nine months, operating income stood at INR1,161 crores, reflecting an 8.3% year-on-year growth. Additionally, total volume grew by 8.2% in Q3 FY ’25 over the same quarter of the previous year. Profit-after-tax for the quarter grew by 12.8% year-on-year to around INR20 crores.
For the first-nine months, PAT reached to around INR62 crores, registering a year-on-year growth of 8.2%. As we mentioned during our Q2 FY ’25 earnings call, our second-half performance has historically outpaced our first-half. We are on-track to meet our guidance of 12% to 13% growth in operating income. Our focus on Project Laksha continues to yield positive results. In the first-nine months of FY ’25, we welcomed 25 new distributors to the initiative, bringing our total distributor count to 315, up from 290 in March ’24. We are pleased to report that Project share of domestic sales has risen from 26% in FY ’24 to 31% in nine months FY ’25. Looking ahead, we expect that by FY ’26, 65% to 70% of our revenue will be contributed by distributors under Project Lakshya. To further enhance our reach and product range, we are excited to announce that we have expanded Project into three new states, Madhya Pradesh, Himachal Pradesh and Jarkand. Thank you. Now Gaurav will provide further details on the business and operational highlights of the quarter.
Gaurav Gupta. — Vice President
Thank you, Ankit. Good afternoon, everyone, and a warm welcome to all of you. Dollar Thermal accounted for 14% of our operating revenue in Q3 FY ’25. Thermal segment experienced remarkable year-on-year growth of 46% in value and 41% in volume. Over the first-nine months of FY ’25, thermal segment achieved year-on-year growth of 20.8% in value and 19.5% in volume, reaching total sales of INR101 crores, contributing to 8.6% to our operating revenue.
In-quarter three FY ’25, Force Next brand saw a year-on-year increase of 13.8% in value and 23.3% year-on-year in volume. For the first-nine months of FY ’25, Force NXT achieved a year-on-year growth of 14.4% in value and 18.8% in volume. For nine months FY ’25, the Southern region contributed to 8.3% to our operating income with a 5% year-on-year growth.
To enhance our presence in the Southern Indian market, we had onboarded the renowned actor Mahesh Babu as a brand ambassador for dollar Wig Bos in the current fiscal year. Our efforts to drive growth in the e-commerce channel are beginning to yield positive results. In Q3 of FY ’25, sales from modern trade and e-commerce channels accounted for approximately 11% of our total operating sales. In fact, the share of modern trade and e-commerce has increased from 6.1% in nine months FY ’24 to 8.9% in nine months FY ’25.
We had also set a target to achieve a contribution from these channels in the range of 8% to 10% by the end of FY ’26. However, we have reached the target more than a year ahead of schedule. We remain committed to a greener future — future and continue to expand our renewable energy capacity. As of December ’24, our total power generation capacity reached 8 megawatts, marking an increase of 2 megawatts in the first-half of the fiscal year ’24-’25.
This progress underscores our dedication to sustainability and reducing our carbon footprint. Thank you all, and I will now hand over the call to our CFO, Mr Ajay, to discuss the financial matrices.
Ajay Kumar Patodia. — Chief Financial Officer.
Thank you,. Good afternoon, everyone, and thank you for joining us for quarter three and Nine-Month FY ’25 earnings call. Before we begin the question-and-answer session, I’d like to provide a brief overview of our financial performance for the quarter. I trust that everyone has had the opportunity to review the earnings presentation and press release.
While has already provided insight into the macro outlook, I will now divul deeper into our financial performance over the past quarter. Our revenue from operation increased by 14.8% year-on-year to around INR380.73 crores in-quarter three FY ’25, up from INR321.55 crore in-quarter three FY ’24. For the first-nine month FY ’25, our revenue from operation reached around INR1,161.33 crores, making an 8.3% year-on-year increase.
This performance aligns with our target of achieving 12% to 13% growth in operating income as outlined by. Our gross profit for quarter three FY ’25 reached around INR135.46 crores, representing a 20.7% year-on-year increase. The gross profit margin for quarter three FY ’25 stood at approximately 35.6% compared to 33.9% in-quarter three FY ’24, reflecting a 172 basis-point expansion year-on-year basis.
For the nine months ended, 31 December 2024, our gross profit was INR404 crores with a 14.5% year-on-year increase. The gross profit margin for the first-nine months of FY ’25 stood at approximately 34.8% compared to 32.9% in the same-period of FY ’24, indicating a 188 basis-point expenses year-on-year basis. Our operating EBITDA in-quarter three FY ’25 grew by 27.6% year-on-year basis, reaching around INR41.62 crores.
The operating EBITDA margin for the quarter expanded by 109 basis-points year-over-year — year-on-year to 10.9%. For the first-nine months, our operating EBITDA stood at around INR126.15 crores with a 24.3% year-on-year increase. The operating EBITDA margin for the same-period expanded by 140 basis-points year-on-year to 10.9%. Our profit-after-tax for the quarter witnessed a 12.8% year-on-year growth, reaching around INR20 crores with a PAT margin of 5.2% for the first-nine months.
Our profit-after-tax stood at around INR61.79 crores, growing at an 8.2% year-on-year rate. I would quickly run-through the brand-wise contribution for the quarter, that is Big Boss and our contribute around 38%. Our economic segment, dollar always contribute around 37%. Our premium segment, Force NHT contribute around 4% and our thermal contribute around 8.6%. Our segment contribute around 2%. Our women segment dollar woman contribute around 8.2%.
We are in our commitment to strategic priorities and growth initiatives all aimed at achieving sustainable growth and profitability in the long-run. Our confidence is extended by our emphasis on premiumization. The continued success of our project such and our growing footprint in the South Indian market additionally, the increasing contribution from modern trail channel is poised to fuel our performance in the upcoming quarter.
We are well-kept to deliver robust revenue and profit growth, not just this year, but well into the future also. Thank you all. With this, we will now open the floor for question-and-answer.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star N2. All participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, if you wish to register for a question, please press star N1.
Our first question comes from the line of Bhargav Buddhadev from Ambit Asset Management. Please go-ahead.
Unidentified Participant
Yeah, good afternoon, team and thank you for the opportunity. Sir, my first question is on working capital. So if you look at the revenue coming in from the areas, it has increased from 26% to almost 31% on a Y-o-Y basis. However, the working capital days have increased from 155 to 171 days. So just wanted some clarification on this plan.
Ankit Gupta
So the overall increase in the net working capital days is because mostly because of the inventory days, there is not much movement in the debtor days, I would say. And inventory, we had to stock up like the — for the Q2 and Q3, it was mostly the thermals which was stocked up. And since our Q4 is quite heavy, we have to build inventory in advance.
So it’s just seasonality thing. On a year-on-year basis, I think it will come down like if you look at — look at it at the end-of-the fiscal year, like March ’25, we would see a lower level of inventory days. So that would reduce your overall net working capital cycle.
Unidentified Participant
And secondly, in the area, is it possible to quantify at what gross and EBITDA margins would we be operating?
Ankit Gupta
Currently, we don’t have that data available, but at a company-level, the — if you look at the revenue part, it’s almost similar to what we get at non-Luxy only. So there is not much of a difference at a EBITDA level or a gross margin level.
Unidentified Participant
And lastly, any guidance you would want to give for next year?.
Ankit Gupta
So this fiscal, we have a guidance of 12% to 13% kind of revenue growth with an EBITDA level of approximately 11%. And next year, as we have already — as we have already also mentioned in our presentation and we have taken a vision of achieving INR2,000 crore revenue in FY ’26 with a — with the EBITDA level of somewhere between 13.5%, like from 13% to 14% kind of an EBITDA Level.
Unidentified Participant
Okay, sir. Thank you very much and all the very best.
Ankit Gupta
Thank you,.
Operator
Thank you. The next question comes from the line of Yok Rajani from Money Works For Me. Please go-ahead.
Unidentified Participant
Yeah, hi. I had a question again regarding the working capital and project. So we are planning to go from around 31% revenue contribution to 70% in 15 months. Is there some more guidance you can provide on how the company will achieve it given that it is more than doubling in a very short span of time and seems in a way ambitious?
And my second question is, you said that we would see the number come down when it comes to your working capital days. Is there some number you could provide? Would it be lower than what it was last year at the same time or would it be lower from the current what you say 171 days?
Ankit Gupta
So for Laksha, we are very hopeful and internally we really aspire to achieve 65% to 70% kind of a contribution level coming in from Lakshya Lakshay project and also we are in the process of hiring a good level business head for this particular project who will work-in line with vector consultancy also. And by adding a few more states into this particular project, we are quite hopeful and we really aspire to reach at that level in FY ’26.
With regards to working capital cycle, once a majority of our sales contribution starts coming in from Laksha project there will be a — there will be a downward trend that we’ll see in the net working capital cycle. Like for example, if our — in our distributor, our average receivable is somewhere around 110 days, 112 days, whereas when we talk about our luxur distributors, it is — it is somewhere around 85 to — sorry, 75 to 77 days, right?
So this 25 days of 25 to 30 days of reduction in debtor days will really help us to actually come up with a like cash-positive cash-flow and it will release a lot of cash, which can be used for fueling our growth. With regards to the inventory days, it will always be somewhere between 95 to 97 days because that’s the industry-standard.
And given the number of SKUs that we have given the process, which is like eight from the purchase of yarn or cotton and till the final goods comes into your home, we maintain inventory level of around the process is three months long. So yeah, it takes a longer time. So overall, 95 to 97 days is the optimum level that inventory day should be.
Unidentified Participant
So what would you — could you give us a target for March ’25 as what would we expect in the cash conversion cycle number of days.
Ankit Gupta
In terms of number of days by FY — by FY ’26, we really aspire to be somewhere at 140, 145 days and by FY ’27, I think we should come down to 35 days,
Unidentified Participant
135 days. Okay. I had another question regarding the QIP. I’ve seen that according to our filings, we were planning to raise money for a QIP. I had two questions. Given the current market sentiments, is that plan still ongoing? And given that we will be releasing a lot of cash from our operating activities given — Europe Project, why do we need the QIP?
Ankit Gupta
Just when we announced then we have the same other purpose. Now in view of the prevailing marketing condition, the company has decided to defer its plan to raise fund through the qualified QIP. We believe this reason will allow us to better assess our requirement and ensure that any further — any future fundraising efforts are in the best-in case of our shareholder and the company.
Unidentified Participant
Okay. So it would not have been used to repay the current debt as we like that we had on our books, it would be used for some other purpose.
Ankit Gupta
Yeah, yeah, definitely from internal accrual vendors.
Unidentified Participant
Okay. All right. Thank you so much.
Operator
Thank you. Thank you. Next question comes from the line of from Motilal Oswal Financial Services. Please go-ahead.
Unidentified Participant
Hi, sir. Am I audible?
Ankit Gupta
Yes.
Unidentified Participant
Hello. Sir, our growth rate in e-commerce is pretty good. Are we doing anything for quick-commerce as of now.
Ankit Gupta
Yeah. So for quick commerce, we have already enrolled ourselves in. We are present in Zep 2 also and we are on the verge of agreement Blinkit and plus with the marketplaces like Flipkart, Amazon and Mintra coming up with their own quick commerce department and channels, we have — we are already doing business with which is by the name of Minute and Intra also has been started very recently with the report.
Unidentified Participant
And are we getting good traction as of now?
Ankit Gupta
So see Indian e-commerce, yeah, online sales, it takes time to get visibility to create traction. So we have started this four months, five months back and sir, what are very low at the moment. But yeah, in future, we are very optimistic that it will yield good results.
Unidentified Participant
Okay. And sir, what are our region-wise target mix in next two to three years?
Ankit Gupta
So region-wise, currently North India contributes around 44% to 45%. East and West is almost equal around 23% each and South is around 9%. So going ahead, we are really focusing on our Southern India, like we have already taken Manishwabu as our brand ambassador for South India. So in two to three years time period, we really want to see South India’s contribution coming up from 8% to 9% to 13% to 15% kind of a contribution level.
And apart from that, North India is heavy because we count Rajasthan and UP two big states as part of North India itself. So overall, if you see our — except for South India, our entire market is almost equally divided like it’s nothing like it that one state or one zone is very, very heavy while the other suffers.
Unidentified Participant
Okay, that’s it from my side. Thank you, sir.
Ankit Gupta
Thank you so much.
Operator
Thank you. Thank you. Next question comes from the line of Vijay Shah from Insightful Investments. Please go-ahead.
Vijay Shah
Hello. Yeah. Hi, hi. Thank you for the opportunity. So my one question is, sir, that in the last call you had mentioned that we are now completely done with our capex. Is that understanding still correct?
Ankit Gupta
Yeah. Mostly our capex, which we announced earlier in ’21, ’22 with regard to our factory and the spinning plant, we already completed and we also capitalized in the month of — in December only. So almost our announced capex plan is already almost completed. Now there is only pending two, three megawatt solar capacity we have to add-in coming six to 12 months.
Vijay Shah
Sure. So given that you all have already guided that we will look to reduce our cash conversion cycle and look to improve our margins in the next 15 to 18 months. So what kind of free-cash flow generation or debt reduction that you think we can see over up till March ’26
Ankit Gupta
. So Mr, we have the target to date for the company by FY ’27 as per our projection.
Vijay Shah
And you feel confident that we’ll be able to do that?
Unidentified Participant
Yeah, yeah. Sure. Because I see it right now, either we see a lower working capital or we see higher margins, otherwise right now if this margin and with this working capital, whatever we earn just goes into funding our working capital cycle.
Ankit Gupta
So there will be — with the expansion in revenue also, there’ll be a lot of operating leverage will be created. And plus if you see with the product mix change, this year our ASP has gone up by 7%, like there is a value growth of 7% overall on a nine-month basis as well. So our gross margins are also improving. So overall, there will be an expansion of our margin structure as well, plus at the same time, we’ll be reducing our debt. So both taken together Will really help us to move forward, fuel our growth and at the same time become debt-free as the Ajay jee has already told by FY ’27.
Vijay Shah
Perfect. So I understand that the — if at all we raise any QIP money, that will not go towards debt. Internal accruals over the next two years will help us reduce the debt.
Gaurav Gupta.
Yes. So if any QIP is raised in the near-future also, like currently, we are deferring the thing. But if we raise — if we raise any money through QIP, it will be only to fuel our growth. Like we are coming — like we have launched Raincoat very recently. And this year, nine months ended, we are seeing a 90% kind of a growth and with a revenue of INR22 crores in nine months and then at an EBITDA level, which is around 23% 24%.
So all these new categories which are related, which can be used through our current channel and also to increase our footprint digitally through e-commerce sales, the D2C sales, the quick commerce and everything, we will be using only to fuel our growth and nothing else, not to repay our debt.
Vijay Shah
Got it. Thank you so much. Appreciate it. Thank you.
Gaurav Gupta.
Thank you.
Operator
Thank you. Next question comes from the line of Arnav Sakuja from Amit. Please go-ahead.
Unidentified Participant
Hi, thanks for taking my question. Can you tell us a bit about the joint-venture agreement that you have entered to with Goat Brand Lab?
Ankit Gupta
Yeah. So this year — this particular fiscal has been really good with our JV company, Pepe Inna Fashion Private Limited. Last year for nine months ended, we had a revenue of somewhere around 10 crores to INR11 point something crores. But this year, nine months ended, we have doubled our sales. Currently, we are standing at around INR26 crores. And for the first time, this is the first time — first fiscal year where we are seeing a good profitability also coming in with an overall EBITDA of around INR5 crores in INR26 crores sale.
Unidentified Participant
Thanks for that answer. I just had one more question. What are some of the reasons for the 180 bps year-on-year decline in the gross margins that we saw?
Ankit Gupta
Sorry,
Unidentified Participant
So year-on-year, our gross margins, I think correct me if I’m wrong, they declined by around 180 basis-points.
Ankit Gupta
No, it has increased. Actually, last year nine months ended, our overall gross margin was at 33.05%, which has increased to 34.99%.
Gaurav Gupta.
Actually, you have to. In calculating gross margin, you have to also taken the expenses also. In our industry, material consumption and the expenses is reduced from the total sale value for arriving the gross margin figure.
Unidentified Participant
The presentation, which has the correct calculation.
Unidentified Speaker
Hello.
Unidentified Participant
Yeah, okay, sure. Thank you. Good evening.
Operator
Thank you. The next question comes from the line of DV Gosar from GOG PMS. Please go-ahead.
Unidentified Participant
Hi, sir. Thank you for the opportunity. I just had one question on Project Lakshar. So we have started in three new states, which is Himachal Pradesh, and Madhya Pradesh. So I just wanted to know what will be the contribution of these states in our revenue?
Ankit Gupta
So we have — we have started this stage and it’s at a very initial stage. The distributors are getting stabilized also. Currently, there are around two to three distributors in Madhya Pradesh who has been transformed into Project Laksha in Himachal due to bad weather in Q3, we were only able to roll-out just one distributor.
In, we have done around three to four distributors over there. So it’s very — it’s at a very initial stage so as to comment on that, not much of a contribution, I would say has come in from these states right now
Unidentified Participant
In terms of very minuscule in terms of total revenue. I’m not talking about Project, but these three states would be contributing how much revenue to the overall topline?
Ankit Gupta
Okay. That is around 10% to our total sales. All three things together.
Unidentified Participant
Thank you so much okay.
Operator
The next question comes from the line of Pejal from Elara Capital. Please go-ahead.
Unidentified Participant
I just wanted to get considering the competitive intensity in the economic segment. What are the growth levers that you see of — to reach the top-line of INR2,000 crores by FY ’26?
Ankit Gupta
Sorry, your voice was a bit just quite muted. Can you just repeat the question?
Unidentified Participant
Am I audible?
Ankit Gupta
Yes. Right now you are
Unidentified Participant
. Yes. So considering the competitive intensity in the economic segment, what are the growth levers you think that could help you reach the top-line of INR2,000 crores by FY ’26.
Ankit Gupta
So the — this we have a premium segment called Force Next brand, which is doing really well. So it has good EBITDA levels. The overall average selling price is also on a higher side and it is growing at a rate of, 20% 25% on year-on-year basis right now. So we are expecting a very good growth coming in from Force NXT. Then the new dollar project that we launched a couple of years back, we are very hopeful that it will do really good, plus the increase in the contribution coming in from Lakshay project where we actually target each and every retailers and place our products, create visibility, that will also help us achieve our growth.
So overall, everything taken together, we are very hopeful that 12% to 13% is a kind of a growth is like very much achievable.
Unidentified Participant
Okay, sir. And what is the — how is the demand in the leisure segment?
Ankit Gupta
So in economy segment, right?
Unidentified Participant
Yeah, at leisure
Ankit Gupta
Segment. Leisure. So our leisure segment is doing well. Like if we compare it with the COVID times, it’s not like that. But yeah, since the base is low, then we are seeing good growth coming in from leisure as well. But overall, it is contributing around 12% to 13% to our total sales, our leisure as a category.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. A reminder to all the participants. If you wish to register for a question, please press star and one on your touchstone phone you. Participants. You may press to ask a question. The next question comes from the line of Yash Sonthalia from Edelweiss Public Alternatives. Please go-ahead.
Unidentified Participant
Hi, hi, team. Congratulations for the good set of numbers.
Ankit Gupta
Hello. Thank you.
Unidentified Participant
Yeah. So my first question is like you mentioned on the call, we are expecting our working capital to reduce from the current level to 130, 135 days. And already our project luxury is contributing 31% of revenue and up the difference between project and normal receivables is around 25 days.
So I expect if it goes to 60%, 70%, then 10, 15 days reduction will come from project luxi. Remaining 20 days or 15 days reduction you are expecting from what efficiencies can you please help me with that?
Ankit Gupta
Actually, in this quarter — generally in December quarter, our inventory days is very-high. Currently it is around 127 days. But generally our inventory is around within 95 to 9,900 days only. As we have the future target to achieve in-quarter four, we have built the inventory because we have — if we not prepar or we have not inventory, then we cannot achieve our sales revenue for the next quarter.
So if you analyze all the last three, four years, our inventory days in the month of December has increased and it is now reduced at the end-of-the quarter-four by March ’25. So we expect 10 to 15 days a reduction coming from the inventory only.
Unidentified Participant
Got it, got it. And normally the inventory days between, yes, project Lakshay revenue and the normal revenue is same. There is no efficiency in inventory days, right? So inventory generally maintain
Ankit Gupta
At company-level and there in case of project launch, we have less inventory at dealer level.
Unidentified Participant
And two bookkeeping questions. One, what was the growth of South region in this quarter? And second, the project Lakshay’s contribution for the quarter.
Ankit Gupta
Currently, if you analyze that in the quarter only project like around 31% only. Actually, we have had the three state at — in which we now ground activity is to be done and already we enroll seven to eight distributor in the current level. But for implementing lush project, we have to first make the ground prepare for the — all the distributor to be on the same page only.
So it takes the time, but once the distributor understands that is it is a benefit for him, then all are come within a period. So it is generally not based on that how much in the month we have to add 10 to 20 May in one month, it is only one and in next month it come to 10 months, 10 also. So currently, there is no increase in this quarter because in this quarter we have the — mostly target the winter sale also.
So in this quarter, lux contribution is 31% and next question here.
Unidentified Participant
And one last growth for the quarter, if you can help.
Ankit Gupta
In South, we currently this quarter it has contributed around 8.3% and we aspire to grow to 30% to 40% in the near-future in couple of years. For this reason, we already launch new brand major in South. We also taken the franchisee contract agreement also and hope hoping that within one to two year we have the 15 to 20 EVOs in South House only.
Unidentified Participant
Got it. Thank you. Best of luck for the upcoming quarters. Thank you so much.
Operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question comes from the line of S from Insightful Investments. Please go-ahead.
Unidentified Participant
Hi, sir. Am I audible?
Ankit Gupta
Yeah.
Unidentified Participant
Thank you for the opportunity. So I just had a question about the machine itself. So currently there is around 10% contribution that is coming from the new states that you have added, Madhya Pradesh, Pradesh and. And the contribution from Laksha overall is 31% as you have said. How does that add-up to you getting to 65% to 70% in just one year’s time for around 12 to 15 months?.
Ankit Gupta
So there are some states which are ongoing like North-East is an ongoing project. Bihar is an ongoing project. These three states are there. After that, we are making changes other like Maharashtra is an ongoing project. Maharashtra alone contributes around 15% to our total sales. So that’s an ongoing project.
So these are some of the states which are ongoing and plus these three new states taken together. Now I think — and yeah, from April, we might add one or two states more into this particular project.
Unidentified Participant
Okay. And is there any specific number of distributors adding that you are targeting?
Ankit Gupta
Yeah, see, without mapping, we also wouldn’t know that how many distributors will be added because we have a thing that for every 600, 700 retailer base, we allot a distributor. So until unless we actually map the particular area or the entire area, we won’t be able to know that how many distributors will be added.
Unidentified Participant
Okay, sir. Got it. Thank you.
Ankit Gupta
Thank you so much.
Operator
Thank you. Participants you may press star and 1 to ask a question as there are no further questions from the participants, I now hand the conference over to the management for the closing comments. If any, sir.
Ankit Gupta
Thank you all for taking the time-out to join the earnings call. Have a good day. Thank you, everyone.
Gaurav Gupta.
Thank you, everyone.
Operator
Thank you. On behalf of Dollar Industries Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you