Future growth expectations in sales/revenue/volumes?

Expectation of steady double-digit same store growth (SSG), around 10% after initial years of store operation. Market growth projected to increase to about 11-12% from historical 8-9%. Overall growth (including market growth and share gains) expected to exceed 18%. Incremental investments including 40 new stores planned over 24 months, expanding into tier 2 and tier 3 cities (e.g., Surat, Raipur, Bhubaneswar, Ranchi, Siliguri). Sales growth driven by higher average selling price (ASP) and increasing share of luxury and exclusive brands. Expect a steady increase in ASP over the next 6

Any current/future new fundraising through debt or equity?

Ethos Limited currently does **not have any plans** for raising additional capital through debt or equity. The company has a **decent cash position** with cash and cash equivalents around Rs. 265 Crores as of H1 FY2023. Capital expenditure and expansion plans are expected to be funded through **operating surpluses** and existing resources. The company emphasized the ability to fund their growth initiatives, including new stores and brand expansions, without the need for additional capital raising in the near term.

Any current/future capex/capital investment/strategic investment?

Capex for new stores: Approximately Rs.1.2 Crores per store (for ~1000 sq. ft. store). Inventory per store: About Rs.5 Crores. 40 new stores planned in the next 24 months across metro and tier 2/3 cities. Total capex provisioned in IPO prospectus: Rs.33 Crores; possible slight increase funded from operating surpluses. Store payback period: Around 3 years, including inventory. CPO (Certified Pre-Owned) business requires fewer stores; growth will be mainly online with lounges in Delhi, Mumbai, and select metros. No current plans to raise additional capital; existing cash balance is s

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Ethos LtdQ3 FY22Consumer Durables

Ethos Ltd Q3 FY22 Earnings Call Analysis

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

Price: ₹2,449P/E: 64.6Market Cap: ₹6.2K CrSector: Consumer Durables

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Expectation of steady double-digit same store growth (SSG), around 10% after initial years of store operation.
→Market growth projected to increase to about 11-12% from historical 8-9%.
→Overall growth (including market growth and share gains) expected to exceed 18%.
→Incremental investments including 40 new stores planned over 24 months, expanding into tier 2 and tier 3 cities (e.g., Surat, Raipur, Bhubaneswar, Ranchi, Siliguri).
→Sales growth driven by higher average selling price (ASP) and increasing share of luxury and exclusive brands.
→Expect a steady increase in ASP over the next 6-8 quarters due to focus on luxury/high-luxury segments.
→Volumes are increasing quarter-on-quarter with market share gains and growing refurbishing capacity supporting growth.
→CPO (Certified Pre-Owned) business expected to grow at high double-digit rates steadily over the next 4-5 years.

Margin guidance

Category 3

- Ethos expects a steady increase in average selling prices (ASPs) over the next 6-8 quarters driven by their focus on luxury and high-luxury segments, contributing to improved profitability. - EBITDA margins are expanding due to cost optimization and operating leverage, with a 117% YoY increase in H1 FY2023 EBITDA. - Operating leverage is anticipated to drive sustainable profit growth, although gross margin expansion is near optimal. - Same Store Growth (SSG) is targeted to remain strong, with a long-term steady SSG around 10% after initial years of higher growth. - The company is accelerating store expansion plans with 40 new stores expected in the next 24 months, supporting top-line growth. - Exclusive brand portfolio growth and new category extensions (e.g., Messika Jewellery, Rimowa luggage) will contribute additional revenue streams. - Medium to long-term optimization in inventory days is expected to improve capital efficiency without compromising luxury customer experience. - No plans to raise additional capital currently; cash reserves are strong for funding growth. Overall, Ethos anticipates robust earnings growth driven by market share gains, operating leverage, and portfolio expansion.

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Fundraise plans

→Ethos Limited currently does **not have any plans** for raising additional capital through debt or equity.
→The company has a **decent cash position** with cash and cash equivalents around Rs. 265 Crores as of H1 FY2023.
→Capital expenditure and expansion plans are expected to be funded through **operating surpluses** and existing resources.
→The company emphasized the ability to fund their growth initiatives, including new stores and brand expansions, without the need for additional capital raising in the near term.

Order book

The transcript provided from Ethos Limited's Q2 & H1 FY2023 Earnings Call (Page 2-21) does not contain any explicit information or mention about the company's current or expected order book or pending orders. The discussion focuses primarily on: - Store expansion plans (targeting 40 new stores in next 24 months) - Inventory days management (around 160-168 days) - Same Store Sales Growth (SSG) and gross margin trends - Overview of business segments including new ventures like CPO (Certified Pre-Owned) - Financial highlights including revenue, EBITDA, PAT, and margin outlook - Working capital and capital expenditure details per store As such, there is no direct data on orderbook or pending orders available in the transcript.

Capex plans

Yes

→Capex for new stores: Approximately Rs.1.2 Crores per store (for ~1000 sq. ft. store).
→Inventory per store: About Rs.5 Crores.
→40 new stores planned in the next 24 months across metro and tier 2/3 cities.
→Total capex provisioned in IPO prospectus: Rs.33 Crores; possible slight increase funded from operating surpluses.
→Store payback period: Around 3 years, including inventory.
→CPO (Certified Pre-Owned) business requires fewer stores; growth will be mainly online with lounges in Delhi, Mumbai, and select metros.
→No current plans to raise additional capital; existing cash balance is sufficient.
→Strategic expansion also includes new exclusive brands (e.g., Messika jewellery, Rimowa luxury luggage) to extend beyond watches.
→Discussions ongoing with several additional exclusive brands for India rights.
→Emphasis on physical stores due to luxury market's need for "touch and feel," limiting possible reduction in inventory days.

How does Ethos Ltd rank vs peers in Consumer Durables?

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