Electronics Mart India -
Q4 and FY 24 concall and results highlights -
Q4 outcomes -
Revenues - 1524 cr, up 15 pc
EBITDA - 108 cr, up 18 pc
PAT - 41 cr, up 12 pc
FY 24 outcomes -
Revenues - 6285 cr, up 15 pc
EBITDA - 449 cr, up 34 pc ( margins @ 7.2 vs 6.2 pc )
PAT - 246 cr, up 51 cr
Number of stores added in Q4 - 12 ( all 12 are multi brand outlets )
Number of stores added in FY 24 - 33 ( all 33 are multi brand outlets ) - 13 each in AP, Telangana, 07 in Delhi NCR
Breakup of revenues ( product wise ) -
Mobiles - 42 pc
Large appliances - 45 pc
Small appliances, Laptops and IT peripherals - 13 pc
Yearly sales / Store @ 36 cr
Cash on books @ 85 cr
Total stores ( area wise ) -
Telangana - 97 { 87 MBOs ( multi brand outlets ) + 10 EBOs ( exclusive brand outlets ) }
AP - 41 ( 39 MBOs + 02 EBOs )
Kerala - 01 MBO
Delhi NCR - 21 ( 20 MBOs + 1 EBO )
Total - 147 MBOs + 13 EBOs
Operations in Delhi NCR started in Aug 22. Expect this region’s profitability to ramp up to South Cluster’s levels in 2-3 yrs
Region wise same store growth -
Telangana - 10 pc
AP - 22 pc
Delhi NCR - 94 pc
No plans to enter any new markets for the time being
Same Store growth for FY 24 @ 8.8 pc ( which is healthy )
Top 5 brands contribute to 60 pc of Company’s sales
Management believes that the strong growth in AC sales will get reflected in Q1 sales
To get to EBITDA margins of 5-6 pc in Delhi NCR, company needs these NCR stores to clock > 35 cr/yr per store sales
For FY 25, company is guiding for 15 plus + topline growth. Likely to maintain similar EBITDA margins as FY 24
Even for FY 25, a lot of store expansion focus shall be on the NCR mkts ( going to open another 14 stores in NCR in FY 25 … this includes adjacent mkts of Western UP, Haryana, Noida, Gaziabad etc ). That will take the total store count in this region to 35
Outside NCR, company intends to open 10 - 12 stores in South Mkts in FY 25
When a company opens a new store in Tier - 1 Mkts, it expects the store to ramp up up 60 cr + plus kind of annual sales by the end of 3rd year of operation. For Tier -2,3 stores, this expectation is 35 - 40 cr +
Capex + Inventory for a new store opening ( avg size - 10,000 sq ft ) is generally - 2.5 cr + 2.5 cr = 5 cr / store
Blended gross margins for the company are around 14-15 pc. For large appliances, GMs are around - 16-18 pc. For Mobiles, Laptops etc, they r lower
Disc: holding, biased, not SEBI registered. Also holding Aditya Vision Ltd. Basically bullish on electronics retail space
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