Q2 2025 Monte Carlo Fashions Ltd Earnings Call Transcript
Key Points
- Monte Carlo Fashions Ltd (BOM:538836) reported a revenue growth of 3% year-on-year for the second quarter.
- The company has expanded its distribution network by adding 8 new Exclusive Brand Outlets (EBOs) in Q2 FY '25, bringing the total to 430 across 23 states and 4 union territories.
- Monte Carlo Fashions Ltd (BOM:538836) has successfully launched a new commercial, which is expected to enhance brand visibility.
- The company has ventured into quick commerce by partnering with Blink it, Swiggy, and Zepto for up to 30-minute deliveries, potentially increasing customer convenience and sales.
- Monte Carlo Fashions Ltd (BOM:538836) has a strong cash balance of INR 290 crores, providing financial stability and potential for future investments.
- EBITDA profit for the quarter declined by 17% year-on-year, indicating pressure on profitability.
- Net profit decreased by 40% year-on-year, reflecting challenges in maintaining bottom-line growth.
- The company experienced a marginal decline in revenue from operations by 2% year-on-year for the first half of FY '25.
- Inventory levels have increased due to late dispatches caused by a delayed winter season, potentially impacting cash flow and storage costs.
- Sales returns remain high, with a target to reduce them by at least 10% compared to last year's levels, indicating ongoing challenges in inventory management.
Ladies and gentlemen, good day, and welcome to Monte Carlo Fashions Limited Q2 FY '25 Results Conference Call hosted by Emkay Global Financial Services. We have with us today Mr. Rishabh Oswal, Executive Director; Mr. Sandeep Jain, Executive Director; Mr. R.K. Sharma, Chief Financial Officer; Mr. Dinesh Gogna. Director; and Mr. Ankur Gauba, Company Secretary. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mahek Shah from Emkay Global Financial Services. Thank you, and over to you, Mr. Shah.
Good morning, everyone. I would like to welcome the management and thank them for this opportunity. I shall now hand over the call to the management for their opening remarks. Over to you, gentlemen.
A very good morning to everyone, and thank you all for joining us for today's earnings call to discuss the performance for second quarter and
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