Conference Call with Cello World Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Houseware company Cello World announced Q3FY25 results Revenue: Rs 556.8 crore compared to Rs 527.1 crore during Q3FY24, change 6%. EBITDA: Rs 139.7 crore compared to Rs 136.6 crore during Q3FY24, change 2%. EBITDA margin: 25.1% for Q3FY25. PAT: Rs 86.4 crore compared to Rs 84.9 crore during Q3FY24, change 2%. PAT margin: 15.5% for Q3FY25. Pradeep Rathod, Chairman & Managing Director, Cello World, said: “In 9MFY25, the company delivered revenues of Rs 1,548 crore as against Rs 1,488 crore in the past period. This was broadly in line with the industry, where we continue to see some pressure on the demand side due to muted consumption and discretionary spending by the consumers. At the beginning of the quarter, we saw strong festive demand, but it cooled off towards the end. Despite a slower revenue growth, we were able to maintain a healthy EBITDA margin of 26.3%, primarily driven by our overall operational efficiencies. Looking ahead, we expect a demand recovery, especially in the hydration and back-to-school categories. To strengthen our position, we continue to have an innovative and a preimmunized approach towards our product portfolio with consistent spending towards brand building. Strategically, our focus is on expanding our reach through various distribution models.” Result PDF
Household Products company Cello World announced Q2FY25 results Revenue From Operation: Rs 490.1 crore compared to Rs 489.0 crore during Q2FY24. EBITDA: Rs 131.9 crore compared to Rs 130.9 crore during Q2FY24, change 1%. EBITDA Margin: 26.9% for Q2FY25. PBT: Rs 116.8 crore compared to Rs 117.6 crore during Q2FY24, change -1%. PAT: Rs 81.6 crore compared to Rs 80.0 crore during Q2FY24, change 2%. PAT Margin: 16.7% for Q2FY25. Pradeep Rathod, Chairman & Managing Director, Cello World, said: “In H1FY25, the company delivered steady performance by demonstrating consistent revenue growth and maintaining profitability despite several headwinds on export demand, particularly for writing instruments. Consumerware business grew by 5%, and the moulded furniture business grew by 7% on a year-on-year basis. Writing Instruments business de-grew by 8% mainly due to lower exports. Our focus on operational excellence continues to deliver robust cash generation. This operational rigor gives us the flexibility to navigate external challenges while staying on track with our strategic objectives. We have seen encouraging growth trends in our alternative sales channels, particularly online and modern trade. We see these channels as key drivers for capturing growth across the country, especially for our consumer-ware division. Looking ahead, the second half of FY25 has started on a positive note, with strong sales momentum in October. Given the solid off-take in the early part of the Q3 due to the robust festive season demand, we remain confident in our ability to achieve mid teen growth for FY25. We have commissioned the state-of-the-art glassware manufacturing facility in Falna, Rajasthan. The facility has initiated trial runs, with commercial production set to follow. With this, Cello becomes the only domestic consumer products company with a presence across all material types to have an in-house glassware capacity in India.” Result PDF
Household products company Cello World announced Q1FY25 results: Revenue From Operations: Rs 500.7 crore (6.1% growth YoY) Gross Profit: Rs 269.4 crore (8.6% growth YoY) Gross Profit Margin: 53.8% (increase from 52.6% YoY) EBITDA: Rs 134.9 crore (6.0% growth YoY) EBITDA Margin: 27.0% (unchanged YoY) Profit Before Tax (PBT): Rs 120.3 crore (4.7% growth YoY) PAT (Attributable to Owners): Rs 82.6 crore (6.7% growth YoY) Commenting on the Result, Pradeep Rathod, Chairman & Managing Director, Cello World said “Cello World has started off the year with a decent performance where the growth was in line with the overallindustry. Our revenue grew by 6.1% YoY and witnessed a margin expansion on the gross profit level, whichwent up from 52.6% in Q1FY24 to 53.8% in Q1 FY25. Notably, this improvement in gross margin isattributable to a combination of a shift in revenue mix alongside our continued focus on value-addedpremium products as well as efforts towards improving operational efficiency. This performance was despitemultiple headwinds on the demand front, which got further intensified due to the elections. Our growth was primarily driven by the consumer-ware and furniture businesses, while the writinginstruments remained flattish due to continued sluggishness in the overall demand scenario. However, the EBITDA and PAT margin levels remained in line with Q1FY24. For the quarter, there was a considerableincrease in our advertising spend on account of a back-to-school campaign held by the company. We viewthese activities as crucial investments in reinforcing our brand's recognition and recall. Looking ahead to FY25, we maintain our growth expectations of 15%–17%, driven by an improvement in theoverall demand scenarios in the second half of the year. Result PDF