Conference Call with Go Fashion (India) Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Go Fashion (India) Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
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.” Result PDF
Conference Call with Go Fashion (India) Ltd. Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Other apparel & accessories company Go Fashion (India) announced Q1FY24 results: Total revenue of Rs 190.1 crore in Q1FY24 compared to Rs 165.2 crore in Q1FY23, up 15% YoY Gross profit of Rs 116.6 crore in Q1FY24 compared to Rs 100.2 crore in Q1FY23, up 16% YoY Gross profit margin of 61.3% in Q1FY24 compared to 60.6% in Q1FY23 EBITDA of Rs 64.2 crore in Q1FY24 compared to Rs 53.1 crore in Q1FY23, up 21% YoY EBITDA margin of 33.8% in Q1FY24 compared to 32.1% in Q1FY23 Profit before tax of Rs 34.8 crore in Q1FY24 compared to Rs 31.9 crore in Q1FY23, up 9% YoY PAT of Rs 26.3 crore in Q1FY24 compared to Rs 24.4 crore, up 8% YoY PAT margin of 13.8% in Q1FY24 compared to 14.8% in Q1FY23 Average selling price for FY23 stood at Rs 771 RoCE stood at 19.1%; RoE stood at 19.8% for Q1FY24 (On annualized basis) Cash & cash equivalents stood at Rs 147.7 crore as of 30th June 2023 Commenting on the Result, Gautam Saraogi, CEO, Go Fashion (India), said, “Over the past few months, the retail industry in India has experienced a noticeable slowdown, and the prevailing operating conditions have posed significant challenges for businesses in this sector. Despite the deceleration in the industry, our Company has managed to outperform the market, showcasing commendable resilience and growth. During Q1FY24, our Company achieved a growth of 15% YoY in Revenues, to Rs 190 crore. Moreover, our Profit After Tax also grew by 8% to Rs 26 crore. This has been on the back of volume growth and consistently increasing the number of EBOs. In Q1FY24, the Company has net added 25 new stores. This expansion aligns with our aim to bring our products and services closer to the consumer, enhancing accessibility and convenience. To further enhance the customer experience, we are also exploring omnichannel engagements, leveraging technology to create a seamless shopping journey that transcends physical and online boundaries, reaching consumers across various cities. As part of our commitment to operational efficiency, we have been working on optimizing our working capital. We have successfully reduced inventory days by 19 during the last quarter. This approach has not only streamlined our operations but has also led to the generation of positive operating cash flows. A critical factor contributing to our success has been the establishment of a robust branding team. This team has played a pivotal role in crafting a clear and compelling brand identity, effectively communicating our unique proposition to our target audience, and creating a strong and lasting presence in the market. We look forward to continuing our innovative and creative approach and launching more designs while providing more brand destinations for our consumers which will help us grow at 20%+ CAGR and gain market share in the coming years.” Result PDF
Apparels and Accessories firm Go Fashion announced Q4FY23 & FY23 results: Average Selling Price for FY23 stood at Rs 727 Sales Mix for FY23 EBO : 73.9%; LFS : 20.9%; MBO & Others : 2.6%; Online : 2.7% Same Store Sales Growth (SSSG) for EBOs stood at 17% for Q4FY23 as compared to Q4FY22 (YoY) and at 36% YoY for FY23 Same Cluster Sales Growth (SCSG) for EBOs stood at 30% for Q4 FY23 as compared to Q4FY22 (YoY) and at 64% YoY for FY23 Full Price Sales was 95% for FY23 RoCE stood at 15.9%; RoE stood at 17.3% for FY23 Cash & Cash Equivalents stood at Rs 133.9 crores as on 31st March 2023 Commenting on the Result, Mr. Gautam Saraogi, CEO, Go Fashion (India) Limited said, “FY23 has been a strong year for Go Fashion India Limited. Despite seeing a slowdown in the retail and consumption space, our Company has outperformed. Our Revenues for Q4FY23 grew by 36% YoY to Rs 158 crores and PAT grew by 20% to Rs 15 crores. For the full year, our Revenues grew by 66% YoY to Rs 665 crores and PAT grew by 133% to Rs 83 crores. This has been on the back of volume growth and consistently increasing the number of EBOs. In Q4FY23, the Company has net added 26 new stores and in FY23, the Company has net added 127 new stores. This is in line with the growth strategy to open more doors closer to the consumer. We are also looking at omnichannel engagements for a seamless consumer experience, building on technology-driven growth strategy to reach consumers across all cities. In FY23, we have reduced our working capital through reducing the inventory cycle and continue to do so going ahead. This resulted in generating positive operating cash flows this year. Building a strong branding team has helped us to develop a clear brand identity, communicate that identity to your target audience, and create a strong presence in the market. We look forward to continuing our innovative and creative approach and launch more designs while providing more brand destinations for our consumers which will help us grow at 20%+ CAGR and gain market share in the coming years.” Result PDF
Other apparels & accessories firm Go Fashion (India) announced Q3FY23 results: Q3FY23: Revenue from operations at Rs 177 crore up 24%. Gross profit at Rs 104 crore up 21%. EBITDA Rs 59 crore up 14%. Profit after tax (PAT) at Rs 24 crore up 3%. Average Selling Price for 9MFY23 stood at Rs 724 Sales mix for 9MFY23: EBO : 73.4%; LFS : 20.9%; MBO & Others : 3.1%; Online : 2.6% Cash flow from operations for 9MFY23 stood at Rs 60 crore RoCE stood at 19.8%; RoE stood at 17.8% for 9MFY23 (on annualized basis) Cash & cash equivalents stood at Rs 118.2 crore. as on December 31, 2022. Commenting on the Result, Mr. Gautam Saraogi, CEO, Go Fashion (India) Limited said: “The company has performed well despite a slow down seen post festive season in Q3 FY23. Our Revenues for Q3FY23 grew by 24% YoY to Rs 177 crores, highest ever quarterly revenues at Go Fashion. EBITDA and PAT grew by 14% and 3% respectively to Rs 59 crores and Rs 24 crores, respectively. This has been on the back of volume growth and consistently increasing the number of EBOs. We continue to invest in brand-building initiatives by creating a strong branding team which will help us to gain visibility and to focus and grow our online channel sales to benefit from the evolving customer trends in our market. The approach of our brand campaigns is to reach out to audience who have an affinity to the brand and also to the audience who are currently in the consideration funnel of purchase. In Q3FY23, the company has added 35 new stores and in 9MFY23, the company added 101 new stores. This is in line with the growth strategy to open more doors closer to the consumer. We are also looking at omnichannel engagements for a seamless consumer experience, building on technology-driven growth strategy to reach consumers across all cities. We look forward to continuing our innovative and creative approach and launch more designs while providing more brand destinations for our consumers which will help us grow and gain market share in the coming years.” Result PDF