Concall Notes – May
Retail Network Expansion:
- Added 62,000 sq. ft. of net retail area in Q4.
- Launched first EBO of Mohey brand in Bengaluru.
- Expanded retail footprint by 2.34 lakh sq. ft. in FY24.
- National EBO footprint: 660 stores in 255 cities.
Marketing Campaigns:
- Collaborated with Mega Star Ram Charan and Bollywood actress Kiara Advani.
- Partnered with celebrity stylist Tanya Ghavri for a campaign on #DreamDulhanLook.
- Launched campaigns on various festivals across India.
Financial Performance (Q4FY24):
- Revenue from operations: INR363 crores, 6.3% growth YoY.
- EBITDA margins: 49%, EBITDA at INR178 crores.
- PAT margin: 31.9%, profit after tax INR116 crores.
- Customer sales: INR511 crores, 5.9% growth YoY.
Financial Performance (FY24):
- Revenue from operations: INR1,368 crores.
- EBITDA margins: 48.6%, EBITDA at INR664 crores.
- PAT margin: 30.3%, profit after tax INR414 crores.
- Strong cash conversion ratio of 81.4%.
Challenges Faced:
- Impact of significantly lower weddings and muted consumer sentiments in FY24.
- Lower demand due to weaker sentiment and higher base effect post-COVID.
- Receivables increased due to weaker financial year and net retail area expansion.
Future Growth Strategies:
- Confident about rebounding consumer sentiments in FY25.
- Focus on expanding retail footprint and launching new campaigns.
- Project Manthan to be revamped, entering new categories related to weddings and accessories.
Competition and Market Outlook:
- Competition from players like Raymond and Tasva.
- Majority of new stores opened in Tier 1 and Tier 2 cities.
- Strong moats in place with high brand awareness and consumer understanding.
- Planning to enter new categories related to weddings and daily accessories.
Overall Sentiment:
- Optimistic about future growth post weak FY24.
- Confidence in the company’s strategic decisions and growth potential.
- Focus on leveraging existing retail network and adapting to changing consumer sentiments.
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