Cantabil RetailQ2 FY24

Cantabil Retail Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹225P/E: 20.3Market Cap: ₹2.0K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 3

Margin

Category 4

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • The company targets revenue growth of approximately 18-20% for the coming financial year.
  • The immediate target is to reach INR 1000 Crores revenue within the next 2 to 2.5 financial years.
  • Volume-wise, the company expects to deliver approximately 60 lakh pieces annually based on internal targets and expansion plans.
  • Q3 sales growth is expected to be around 20-25% compared to last year.
  • The company plans to continue expanding stores aggressively, with 51 stores already opened in the first half and an annual target of 70 store additions maintained.
  • Addition of new categories like women’s wear, kids wear, and footwear is projected to gradually raise average revenue per store from 1.4 to around 1.45 Crores.
  • E-commerce revenue contribution is expected to increase to around 10% of overall revenue by next financial year.

See what Cantabil Retail management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no mention of any current or future fundraising through debt or equity in the provided transcript.
  • The discussion primarily focuses on sales performance, store expansions, capacity utilization, competition, and operational metrics.
  • No questions or answers address plans related to raising capital through debt or equity.
  • Capex is mentioned concerning warehousing and office facilities but funded from internal resources or business cash flows.
  • The company appears focused on organic growth and capacity expansion without indicating external fundraising requirements.

See what Cantabil Retail management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Capex on new warehousing cum office building near existing office; construction ongoing.
  • Approximate capex cost: ₹40 Crores till now for land and clearance; ₹45 Crores expected in the current financial year for building completion.
  • Additional capex planned over the current and next financial year, with approximately 50% of costs in the coming years.
  • Expansion of manufacturing capacity from existing 15 lakh pieces to 20 lakh pieces planned, maintaining 60% own fabrication and 40% FOB procurement.
  • New stores expansion ongoing with no cut in annual store addition plans; 51 stores added by October with target of 70 stores for the year.
  • Investment of ₹5 Crores planned for athleisure and footwear stores, with first footwear store opening soon.
  • Overall, capex mainly focused on warehousing, office facilities, store expansion, and category-specific store launches.

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How does Cantabil Retail rank vs peers in Textiles & Apparels?

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Rev 3Mar 4

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