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Apparels & Accessories company Go Fashion (India) announced Q2FY24 & H1FY24 results:
1. Financial Performance:
- Revenue from operations for H1FY24 stood at Rs 379 crore, showing a growth of 15% YoY.
- Gross profit for H1FY24 was Rs 231 crore, with a gross profit margin of 61.0%.
- EBITDA for H1FY24 was Rs 121 crore, with an EBITDA margin of 31.9%.
- Profit after tax (PAT) for H1FY24 stood at Rs 46 crore, showing a growth of 6% YoY.
2. Business Updates:
- Full-price sales accounted for 95% of total sales in H1FY24.
- Average selling price for H1FY24 was Rs 752.
- Sales mix for H1FY24: EBOs - 73.4%, LFS (Large Format Stores) - 21.3%, Online - 2.9%, MBO & Others - 2.3%.
- Same-store sales growth (SSSG) for EBOs showed a de-growth of 1% for Q2FY24 compared to Q2FY23.
- Same cluster sales growth (SCSG) for EBOs stood at 11% for Q2FY24 compared to Q2FY23 and 13% YoY for H1FY24.
- 48 net new EBOs were added during H1FY24, bringing the total EBOs to 678 stores.
- Working capital days reduced to 132 days as of September 30, 2023, from 149 days as of March 31, 2023.
3. Cash Flow and Financial Ratios:
- Cash flow from operations (OCF) for H1FY24 (Post IND AS 116) was Rs 113 crore, compared to Rs 36 crore for H1FY23.
- OCF (Pre IND AS 116) for H1FY24 turned positive and stood at Rs 63 crore.
- Return on capital employed (ROCE) was 16.5% and return on equity (RoE) was 17.0% for H1FY24 (on an annualized basis).
- Cash and cash equivalents stood at Rs 172 crore as of September 30, 2023.
Commenting on the result, Gautam Saraogi, CEO, Go Fashion (India) said, “During the past few months, the retail industry has witnessed a slowdown due to sluggish consumer demand. Despite these external challenges, the company has managed to maintain its growth trajectory. We are seeing a pickup in demand during the festivals.
Furthermore, the demand typically associated with the festive season has been delayed until Q3 this year, resulting in a relatively stagnant same-store sales growth for Q2 & H1FY24.
During H1FY24, our Company achieved a growth of 15% YoY in Revenues to Rs 379 crore. We have also witnessed a steady improvement in our gross margins which stood at 61.0%. Our PAT for H1FY24 stood at Rs 46 crore, a growth of 6% YoY.
The company has achieved a strong positive cash flow from operations of Rs 63 crore of Pre IND-AS 116, a significant turnaround from the negative cashflows recorded during the same time last year. This further aligns the company's commitment to sustainable growth driven by cash flow generation.
We strongly remain committed to operational efficiency and continue to see several improvements on the working capital front. We successfully have reduced our inventory by 21 days in September compared to March which is also indicative of the cashflows the company generated.
During H1FY24, the company has added a net total of 48 stores, in line with our commitment to increasing accessibility and convenience for our customers. We aim to add 120 stores on a net basis for the full year FY24. To further elevate the customer experience, we are also exploring omnichannel strategies that leverage technology to seamlessly connect physical and online shopping experiences in turn expanding our reach to consumers in various cities.”
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