Electronics Mart India ltd –
Q1 FY 25 concall and results highlights –
Revenues – 1975 vs 1684 cr, up 17 pc
EBITDA – 154 vs 130 cr, up 18 pc ( margin @ 8 vs 8 pc ) Q1 margins for Aditya Vision are 10 pc
PAT – 72 vs 60 cr, up 20 pc
Product wise sales mix –
Mobile phones – 35 pc
Large durables – 53 pc
Small durables, IT eqpt – 12 pc
Total no of stores @ 170, out of which 13 are owned No of stores added in Q1 @ 10 stores
Avg bill value @ 24.19k vs 23.95k YoY
Same store sales growth @ 8.6 pc
Cash on books @ 95 cr
Geographical breakdown of stores –
Telangana – 101 stores
Andhra Pradesh – 44 stores
Delhi NCR – 23 stores
Kerala – 01 store
Telangana + AP + Kerala stores operating @ 8.3 pc EBITDA margins
Delhi NCR stores operating at 2.6 pc operating margins. Operations in Delhi NCR started in Aug 22. Company expects Delhi NCR stores to reach Southern State’s level of profitability in future
Total number of EBOs @ 12. Rest 158 are MBOs
Aim to open another 25 stores in the remaining 9 months and grow in strong double digits in FY 25 in terms of topline
The receivables present on company’s Balance sheet are the monies to be received from Banks / NBFCs for EMI / Credit card sales – generally it takes 3-4 days for the company to receive the money
Company’s stores in Delhi NCR are spread across high street and not not so well penetrated areas like – Burari, Najafgarh etc ( these r almost like tier 2,3 towns )
Despite the heat wave and accelerated sales of compression products in Q1, the gross margins for the company only expanded by just 30 Bps. The same is due to the fact that the heat wave was particularly severe in North India and not in AP-Telangana
Along with NCR, Telangana and AP – tier -2,3 towns are also a key focus areas for the company wrt new store openings ( areas like Nellore, Guntur, Vizag, Vijaywada etc )
Due to PLIs and greater manufacturing and assembly in India, prices of consumer durables are actually not rising. Therefore, price growth is generally remaining muted for the company. Growth is only coming from volumes
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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