Q1 2027 Rupa & Company Ltd Earnings Call Transcript
Key Points
- Revenue grew 10.1% year-on-year to INR202.4 crore, driven by healthy volume traction.
- EBITDA increased 29.1% to INR15.7 crore, with margin improving 120 basis points to 7.8%.
- Net profit surged 50.2% to INR8.3 crore, with PAT margin up 110 basis points to 4.1%.
- Company maintains a net cash surplus of INR7 crore, reflecting strong liquidity and financial flexibility.
- Management guides for 10-12% revenue growth and 9-10% EBITDA margin in the coming quarter, supported by a favorable yarn price environment and planned rationalization of advertisement spends.
- EBITDA margin of 7.8% fell short of the guided 9-10% due to elevated advertisement and marketing spends at 10.5% of revenue.
- Price hikes taken in April were offset by intense competition, as competitors passed on extra schemes, delaying realization of price increases.
- Competitive intensity remains elevated, with organized players offering higher discounts to gain market share, pressuring margins.
- Athleisure segment growth was soft in Q1, with only 5-7% year-on-year growth, though management expects double-digit growth from Q2.
- Women's segment continues to underperform, with management acknowledging it has not done as well as expected and requiring significant team and brand rebuilding efforts.
Ladies and gentlemen, good day and welcome to Rupa & Company Limited Q1 FY27 earnings conference call hosted by MUFG in time. (Operator Instructions) I now hand the conference over to Ms. Pradnya Singh from MUFG-End Time. Thank you, and over to you, maâam.
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Good afternoon, everyone. I welcome you all to the earnings conference call to discuss Q1 FY27 results of Rupa Company Limited. To discuss our results, we have with us from the management Mr. Vikas Agarwal, the whole-time director, and Mr. Sumit Khawala, the Chief Financial Officer. They will take you through the results and then we will proceed to Q&A session. Before we proceed to the call, a small disclaimer: this conference may contain certain forward-looking statements about the company which are based on the beliefs, opinions, and expectations as on date of this call.
The actual results may differ materially. These statements are not guarantee of future performance and involve risk and uncertainties that
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