- Capex for the year is INR75 crores, with an additional INR20 crores being an advance for future spending. Capex for the year will not exceed 25% of PAT along with depreciation. Some of the planned capex in FY ’24 will be staggered to early FY ’25 due to the challenging business outlook.
- LED sales have grown 2.1% YOY.
- Channel mix for FY23: General trade – 42%, Modern retail – 10%, E-commerce – 30%, Corporate sales – 5%, Exports – 10%. E-commerce channels have been impacted by operational issues and consumer behavior, but are expected to return to earlier growth levels.
- Guidance: The company has successfully added 54 stores in southern markets and remains committed to accelerating store reach in FY’24. The company plans to open around 100 stores this year via Franchising, with 7-8 stores per month as the run rate. The company’s retail stores have a gross margin of 45-48%, with costs ranging from INR1.25 lakhs to INR3 lakhs and an average revenue of INR4 lakhs per month. Stores become profitable after the third month of operation. Gross Margins expected to improve 1% in this year. Plans to reach 20% ROE this year and EBITDA margin of 11%. They advise against sacrificing margins and ROE for growth in a tepid demand scenario. Advertising spend is not more than 3.5% and the company will continue to invest in marketing.
- The company is confident in demand for their products, particularly during festival seasons, and believes they can achieve their historic growth rate of 19% in a normal situation.
- The company assures investors that it is on a strong footing and will be able to deliver aspired EBITDA and margin numbers in the coming quarters.
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