Cantabil Retail India Ltd
Q3 FY23 Earnings Call Analysis
Textiles & Apparels
fundraise: No informationcapex: Yesrevenue: Category 3margin: Category 4orderbook: No information
π°fundraise
Any current/future new fundraising through debt or equity?
- 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.
ποΈcapex
Any current/future capex/capital investment/strategic investment?
- Capex on new warehousing cum office building near existing office; construction ongoing.
- Approximate capex cost: βΉ40 Crores till now for land and clearance; βΉ45 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 βΉ5 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.
πrevenue
Future growth expectations in sales/revenue/volumes?
- 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 womenβs 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.
πmargin
Future growth expectations in earnings/operating earnings/profits/EPS?
- Revenue growth target: approximately 18-20% for the coming financial year.
- Target to reach βΉ1000 Crores revenue in the next 2 to 2.5 years.
- Pre Ind-AS EBITDA margin target: approximately 18-19%.
- PAT margin target: approximately 20%.
- EBITDA and PAT margins may see a near-term slight decline (1-2%) due to market challenges but are expected to stabilize at prior levels over the longer term.
- The company maintains its long-term growth strategy and expansion plans (including new stores and categories like women's wear, kids, footwear).
- Same store sales growth has stabilized, supporting expansion.
- EPS growth is expected aligned with improved revenue and margin targets over the medium term.
πorderbook
Current/ Expected Orderbook/ Pending Orders?
The provided transcript from Cantabil Retail India Limited's Q2 and H1 FY2024 Earnings Call does not explicitly mention any details about the current or expected order book or pending orders. The discussion mainly covers topics such as competition, sales performance, expansion plans, manufacturing vs outsourcing, gross margins, inventory management, e-commerce growth, and store expansion targets.
If you need specific details about their order book or pending orders, it may not be disclosed in this section of the transcript. For accurate and updated information on order books, reviewing the company's official quarterly/annual reports or direct communications may be necessary.
