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Specialty Retail company Credo Brands Marketing announced Q2FY24 & H1FY24 results:
Financial Performance Summary:
- Revenue from Operations: Rs 165.6 crore, a 16% increase.
- Gross Profit: Rs 95.3 crore, up by 16%.
- Gross Profit Margin: Slight decrease to 57.5% in Q2FY24 from 57.4% in Q2FY23.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Rs 56.8 crore, marking an 11% rise.
- EBITDA Margin: Slightly down to 34.3% in Q2FY24 from 35.9% in Q2FY23.
- Profit Before Tax (PBT): Grew by 6%, amounting to Rs 37.0 crore.
- Profit After Tax (PAT): Increased to Rs 28.0 crore, which is an 8% increase.
- PAT Margin: Down to 16.9% in Q2FY24 from 18.2% in Q2FY23.
Business Highlights:
- Same Store Sales Growth (SSSG): Declined by 4.7% for Q2FY24 compared to Q2FY23.
- Working Capital Days: Stood at 177 days as of 30th September 2023.
- Operational Cash Flow (OCF): At Rs -5.4 crore for H1FY24, improving from Rs -24.7 crore for H1FY23.
- Return on Capital Employed (ROCE): At 38.4% for H1FY24.
- Return on Equity (RoE): At 26.2% for H1FY24.
Store Expansion:
- Exclusive Brand Outlets (EBOs): Net addition of 31 stores during H1FY24, reaching a total of 404 stores.
Sales and Product Mix:
- H1FY24 Sales Mix: EBO - 52.5%, MBO - 25.0%, LFS - 3.3%, Online - 16.3%, Others - 2.9%.
- H1FY24 Product Mix: Shirts - 42.1%, T-shirts - 13.5%, Bottomwear - 40.8%, Outerwear - 1.0%, Others - 2.6%.
Commenting on the result, Kamal Khushlani, Chairman & MD, Credo Brands Marketing said, “We at Mufti thank the investor community for the tremendous support shown during the IPO. Public Listing is a proud moment for us and this will provide a healthy visibility to the brand.
Over the recent months, the retail sector experienced a slowdown owing to subdued consumer demand. Despite facing these external challenges, the company has successfully sustained its growth momentum. Moreover, some demand typically linked with the festive season has been deferred to the third quarter of this year, leading to comparatively lower growth for Q2 & H1FY24.
During H1FY24, Revenues grew by 21% Y-o-Y to Rs 284 crore with Gross Margins at 57.0%. Our EBITDA and PAT for H1FY24 stood at Rs 87 crore and Rs 37 crore respectively.
We believe in providing a meaningful wardrobe solution for multiple occasions in a customer’s life, with our product offerings ranging from shirts to t-shirts to jeans to chinos, which cater to all year-round clothing. The brand was created as an alternative dressing solution and was designed to deliver a casual alternative with a focus on creative, bold, and expressive clothing for the contemporary Indian man who wanted something more stylish than what was commonly available. Our products are designed to provide a youthful appearance while keeping up with the ongoing fashion trends. Our design team is constantly focusing on expanding our product range to meet a varied range of consumer needs."
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