March 23 Concall notes
- Volume growth of 37% in this quarter, Value degrowth by 29%, revenue growth of 8%
- Ad expense of FY23 was 101Cr , 7% of revenue
- The premium segment and women segment had a volume growth of 15% and 10%
- Opened 14 EBOs this year.
- Modern retail ( e-commerce ) showed a volume growth of 33%
- Contribution split: 42% Big Boss, 37 % Dollar Always, 9% Missy (women), 6% dollar winterwear, 4% Force NXT (premium)
- Further margin reduction in this quarter is because of the 4-5% price reduction and high-cost inventory. Cotton candy in Feb was at 65k/Kg , currently at 55k/Kg. Yarn prices however have not reduced.
- Management believes that COGS and margins have bottomed out
- Price cuts were only 4-5% but value degrowth of 29% was because of the higher growth in economic product (dollar always). 53% growth in dollar always, 14% in big boss
- Ad spends in FY24 will be 6.5% of revenue
- FY24 guidance: revenue growth of 12-13%, EBITA margins of 11-12%
- Raw material split: 20% cotton, 80% yarn, and fabric
- 20% of yarn required is manufactured house, this is used for the manufacturing of premium segment
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