Q2 2024 Khadim India Ltd Earnings Call Transcript
Key Points
- Khadim India Ltd (BOM:540775) maintained healthy gross margins of 44.7% in Q2 FY24, benefiting from lower raw material prices and higher retail sales contribution.
- The company opened 51 new stores in Q2 FY24, expanding its retail presence to 861 stores.
- Retail sales contributed 70% to revenues in Q2 FY24, indicating strong performance in this segment.
- The company is seeing good traction in its Pro sub-brand, particularly in the sports shoe segment, which has contributed to improved gross margins.
- Khadim India Ltd (BOM:540775) is expanding its distribution network, adding 19 new distributors in Q2 FY24, bringing the total to 741 distributors.
- Revenue from operations declined by 15.6% year on year in Q2 FY24, from INR186 crores to INR157 crores.
- EBITDA for the quarter registered a degrowth of 21% year on year, with operating EBITDA margin down by 80 basis points.
- Net profit for the quarter stood at INR1.8 crores, down by 64% year on year, with PAT margins decreasing by 160 basis points.
- The distribution business saw a significant decline in traction, attributed to muted demand for lower segment products and corrective measures in working capital.
- The company faces potential supply chain issues with the implementation of BIS regulations on footwear effective from January 2024.
Ladies and gentlemen, good day, and welcome to Q2 and H1 FY24 earnings conference call of Khadim India Limited hosted by Orient Capital.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sumeet Khaitan from Orient Capital. Thank you, and over to you.
Yeah. Good evening, everyone. Welcome to the conference call to discuss the results for Q2 and H1 FY24 of Khadim India Limited. Today, from the management, we have Mr. Rittick Roy Burman, Whole-Time Director; and Mr. Indrajit Chaudhuri, CFO.
Before we start the call, I would like to give a small disclaimer that this conference call may contain some forward-looking statements, which are based on beliefs, opinion, and expectations of the company as on date. Actual results may differ materially.
Our detailed Safe Harbor statement has also been published in the company's investor presentation, which was uploaded on the stock exchange today. I hope everyone had a chance
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