Specialty Retail company credo Brands Marketing announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from Operations rose by 15% to Rs 153.2 crore from Rs 133.1 crore. Gross Profit increased by 11% to Rs 82.8 crore from Rs 74.4 crore. Gross Profit Margin stood at 54.0%, down from 55.9%. EBITDA jumped 33% to Rs 41.1 crore from Rs 30.9 crore. EBITDA Margin expanded to 26.8%, up from 23.2%. Profit Before Tax (PBT) nearly doubled, rising 92% to Rs 18.9 crore from Rs 9.9 crore. PAT surged 96% to Rs 13.8 crore from Rs 7.1 crore. FY25 Financial Highlights: Revenue from Operations grew by 9% to Rs 618.2 crore from Rs 567.3 crore. Gross Profit rose by 9% to Rs 353.9 crore from Rs 326.1 crore. Gross Profit Margin remained relatively flat at 57.2% vs 57.5%. EBITDA increased by 12% to Rs 179.8 crore from Rs 160.5 crore. EBITDA Margin improved to 29.1% from 28.3%. PBT rose 16% to Rs 91.8 crore from Rs 78.9 crore. PAT increased 15% to Rs 68.4 crore from Rs 59.2 crore. Commenting on the Result, Kamal Khushlani, Chairman & MD, credo Brands Marketing said, “In FY25, our focus was on achieving sustainable growth without compromising profitability—and we’re pleased to have met that goal. Even in a subdued market environment, particularly within the premium and mid-premium segments, we recorded meaningful growth of 9%, taking our revenue to Rs 618.2 crore, which demonstrates the strong brand appeal and resilience inspite of challenging market conditions. Amid industry-wide headwinds, we maintained a healthy gross margin of 57.2%. Our cost optimization efforts played a key role in controlling expenses, leading to a 12% year-on-year increase in EBITDA and a 15% year-on-year growth in PAT. A key area of success was optimizing inventory levels. We reduced inventory days by 10 days to 67 days in FY25. In FY25, we opened 16 new stores on a net basis. Given the subdued market environment, we adopted a selective approach to store expansion, prioritizing high-potential locations aligned with evolving demand trends. Looking ahead, we plan to expand our store network in both existing and new cities where we identify strong market opportunities. As demand begins to pick up, we are well-positioned to open new stores, to strengthen MUFTI’s presence, and further grow our EBO footprint. As part of our broader strategy to expand our presence in the direct-to-consumer (D2C) segment, we have been actively working towards strengthening our digital footprint. Our primary focus has been on leveraging key online platforms, particularly Google and Meta, to attract new customers, drive traffic, and enhance conversion rates. This digital-first approach has been instrumental in scaling our business in this space. While this strategy may lead to an increase in advertising and marketing expenses, we plan to maintain our brandbuilding investment at ~5% of revenues for FY26, a guidance given earlier as well. In line with our endeavour to premiumise our Brand experience, we have initiated a transformation of our retail identity. Several flagship stores will be upgraded to align more closely with our premium brand positioning. These revamped formats are designed to offer a superior, high-quality shopping experience that resonates with the modern customer. Our commitment to offering high-quality products remains unwavering, and this initiative marks a significant milestone in our journey toward becoming a truly premium brand. Our asset light business model, robust cash flows, and low-debt position provide a solid foundation to execute our multipronged strategy whilst maintaining profitability and healthy margins. We remain confident in our ability to navigate short-term market fluctuations and deliver sustainable, consistent, and profitable growth in the years to come.” Result PDF
Specialty Retail company Credo Brands Marketing announced Q2FY25 results Revenue from Operations: Rs 185.6 crore, Rs 165.6 crore compared to period during Q2FY24, change 12%. Gross Profit: Rs 102.2 crore, Rs 95.3 crore compared to period during Q2FY24, change 7%. Gross Profit Margin 55.1%. EBITDA Rs 57.6 crore, Rs 56.8 crore compared to period during Q2FY24, change 1%. EBITDA Margin: 31.1%. PAT Rs 26.5 crore, Rs 28.0 crore compared to period during Q2FY24, change -5%. PAT Margin 14.3%. Kamal Khushlani, Chairman & MD, Credo Brands Marketing said: “Our Company demonstrated resilience and a steadfast commitment to driving growth despite facing a challenging external environment. Margins due to subdued demand were impacted in this period by several external factors, including a reduced number of wedding dates, unprecedented heavy rains in September, and generally subdued discretionary spending. Despite these headwinds, our growth in revenues by 12% in the quarter underscores our focus on growth and the strength of our response in a shifting market and this is after taking a 3% increase in provisions for returns as compared to the same period last year. Our Gross Profit Margins remained stable, highlighting the strong customer loyalty and enduring appeal of the brand even in challenging conditions. As planned, over the last six months, we have been able to reduce our inventory levels, and we will continue to manage the same going ahead. In this half year, we have opened 17 new stores on a gross basis (2 new stores on a net basis) taking our total count to 427 stores. Given the softer demand environment we have been selective about our store openings and have been focusing on high quality signings. Going forward as demand begins to pick up we expect to further ramp up our store openings and plan to open 20-25 new stores in the second half of the year. We intend to open new stores with aim of improving market share, brand recognition and economies of scale. We are anticipating stronger demand in the coming months, driven by the festive season and upcoming marriages. We are also looking to improve our presence on digital platforms which will help us grew our D2C business and for this purpose we have partnered with Meta and Google. Our strategy revolves around providing high quality products to our customers and continue being the bridge between the mass and premium consumer segments and our asset light business model, robust cash flows, and low-debt position provide a solid foundation to execute our multipronged strategies whilst maintaining profitability and healthy margins." Result PDF
Speciality Retail company Credo Brands Marketing announced Q1FY25 results: Financial Highlights: Revenue from Operations: Rs 123.9 crore in Q1FY25, representing a 5% increase compared to Rs 118.5 crore in Q1FY24. Gross Profit: Rs 72.6 crore in Q1FY25, a 9% increase from Rs 66.5 crore in Q1FY24. Gross Profit Margin: 58.6% in Q1FY25, up from 56.2% in Q1FY24. EBITDA: Rs 33.4 crore in Q1FY25, showing a 10% increase compared to Rs 30.3 crore in Q1FY24. EBITDA Margin: 26.9% in Q1FY25, improved from 25.5% in Q1FY24. Profit Before Tax (PBT): Rs 13.1 crore in Q1FY25, a 15% increase from Rs 11.3 crore in Q1FY24. Profit After Tax (PAT): Rs 9.8 crore in Q1FY25, up by 14% compared to Rs 8.6 crore in Q1FY24. PAT Margin: 7.9% in Q1FY25, an increase from 7.2% in Q1FY24. Commenting on the Result, Kamal Khushlani, Chairman & MD, Credo Brands Marketing said “MUFTI’s Revenues in Q1 FY25 grew by 5%, with EBITDA and PAT growing by 9% and 14% respectively, mainly due to cost optimization measures. The market for premium and mid-premium branded apparel continued to be subdued due to consumer behaviour influenced by an inflationary environment and a nationwide heatwave. Despite a difficult market, our SSSG growth for the quarter stood at 3%. Improved demand and increased foot traffic are anticipated in H2 FY25, driven by the marriages and upcoming festival season. In Q1 FY25, we added 5 net new stores to our portfolio, increasing our total store count to 430. We are optimistic about our continued store expansion efforts and aim to open between 25-30 new stores during FY25. We plan to expand our store network in existing and new cities. We have identified several markets as having potential for opening further EBOs. This offers the potential for market share gains, increased brand recognition and economies of scale. We are also looking to capitalize on the increasing e-commerce demand in Indian retail and grow our share of sales from own website and e-commerce partners. We intend to increase our salience a lot more on the digital platforms looking to improve market share in the D2C space. We continue to develop a strong brand identity through effective brand advertising and multiple marketing campaigns for our brand. Looking ahead, for FY25 the Company aspires to achieve mid-teens revenue growth backed by new store openings in new and existing geographies and subject to recovery in overall industry demand for Premium and Mid-Premium Brands. The Company is also targeting to improve profitability through implementation of various cost efficiency measures. Our sector's resilience, coupled with our adeptness in responding to evolving market dynamics and our commitments to technological advancements and product innovations, positions us favorably for attaining enduring growth. With focused expansion of our product portfolio, we intend to evolve brand Mufti as a 360°men’s lifestyle brand.” Result PDF
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." Result PDF