Any current/future new fundraising through debt or equity?

The transcript does not mention any current or planned fundraising through debt or equity. Ethos Limited reported gross debt of INR 8 crores as of March 31, 2023, which is relatively low. There was no discussion or indication of immediate plans to raise funds via equity or additional debt during the call. Management invited investors to reach out for offline interactions but did not disclose any fundraising intentions. The company appears focused on growth through store expansions and brand tie-ups funded by existing resources and cash reserves (INR 228.6 crores cash as on March 31, 2023).

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

Investment in new brands through Silvercity, a company formed to facilitate further investments in brands like Haute-Rive (Page 14). Small strategic investment of CHF 125,000 (less than INR 1 crore) in Swiss headquarters companies or brands related to Rimowa acquisitions (Page 13). Fit-out of the maiden Rimowa store in the luxury luggage and travel wear market is in progress, with plans to open shortly in Mumbai’s Jio World Plaza mall (Page 4). Continued store expansions and sales growth remain a focus for FY ‘24, indicating ongoing capital expenditure in retail footprint (Page 4). Expansion p

Future growth expectations in sales/revenue/volumes?

Ethos Limited projects revenue growth of 25% to 30% for FY ‘24, building on FY ‘23’s strong 36.6% YoY growth. Steady Same Store Growth (SSG) target is 12% to 15% annually over the next 3-4 years, following an outlier 30% SSG in FY ‘23. Growth is expected across all watch price segments, with Average Selling Price (ASP) also increasing. The pre-owned watch segment, which grew 61% in FY ‘23, is expected to grow similarly or better in FY ‘24. Expansion plans include opening larger stores (800-1,000 sq ft or larger) in key locations to enhance sales and profitability. The portfolio of brands conti

Future growth expectations in earnings/operating earnings/profits/EPS?

Ethos Limited expects revenue growth of 25%-30% for FY ‘24, building on a strong FY ‘23 performance with 36.6% revenue growth. EBITDA margins are expected to either stay stable or improve slightly in FY ‘24, with new stores becoming profitable quickly. Operating leverage is projected to increase over time, particularly from corporate overheads and established stores, improving profitability. The company targets steady same-store sales growth (SSG) of 12%-15% over the next 3-4 years, supporting margin expansion. Gross margins are anticipated to remain stable around 30%-31%, with potential for s

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Ethos LtdQ1 FY23Consumer Durables

Ethos Ltd Q1 FY23 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

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Ethos Limited projects revenue growth of 25% to 30% for FY ‘24, building on FY ‘23’s strong 36.6% YoY growth.
→Steady Same Store Growth (SSG) target is 12% to 15% annually over the next 3-4 years, following an outlier 30% SSG in FY ‘23.
→Growth is expected across all watch price segments, with Average Selling Price (ASP) also increasing.
→The pre-owned watch segment, which grew 61% in FY ‘23, is expected to grow similarly or better in FY ‘24.
→Expansion plans include opening larger stores (800-1,000 sq ft or larger) in key locations to enhance sales and profitability.
→The portfolio of brands continues to grow, with approximately 60 brands (37 exclusive), and new brand additions planned annually.
→Ethos is entering luxury jewelry and travel gear segments for future diversification and growth.
→Overall, the company remains confident in sustained robust growth prospects in India’s luxury watch market.

Margin guidance

Category 3

→Ethos Limited expects revenue growth of 25%-30% for FY ‘24, building on a strong FY ‘23 performance with 36.6% revenue growth.
→EBITDA margins are expected to either stay stable or improve slightly in FY ‘24, with new stores becoming profitable quickly.
→Operating leverage is projected to increase over time, particularly from corporate overheads and established stores, improving profitability.
→The company targets steady same-store sales growth (SSG) of 12%-15% over the next 3-4 years, supporting margin expansion.
→Gross margins are anticipated to remain stable around 30%-31%, with potential for slight improvement due to exclusive brand tie-ups.
→Profit after tax margin improved to 7.5% in FY ‘23 from 4% previously and is expected to benefit from growth and operational efficiencies going forward.

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Fundraise plans

→The transcript does not mention any current or planned fundraising through debt or equity.
→Ethos Limited reported gross debt of INR 8 crores as of March 31, 2023, which is relatively low.
→There was no discussion or indication of immediate plans to raise funds via equity or additional debt during the call.
→Management invited investors to reach out for offline interactions but did not disclose any fundraising intentions.
→The company appears focused on growth through store expansions and brand tie-ups funded by existing resources and cash reserves (INR 228.6 crores cash as on March 31, 2023).

Order book

The transcript provided does not mention any details or figures related to the current or expected order book or pending orders for Ethos Limited. The discussion primarily centers around: - Sales performance and growth in various segments (pre-owned watches, luxury brands). - Gross margin stability and profitability metrics. - Supply constraints for certain models and brands. - Expansion plans including new store openings and brand tie-ups. - Refurbishing and quality considerations in the pre-owned watch segment. No explicit information or data about order book status or pending orders is disclosed in the available transcript pages.

Capex plans

Yes

→Investment in new brands through Silvercity, a company formed to facilitate further investments in brands like Haute-Rive (Page 14).
→Small strategic investment of CHF 125,000 (less than INR 1 crore) in Swiss headquarters companies or brands related to Rimowa acquisitions (Page 13).
→Fit-out of the maiden Rimowa store in the luxury luggage and travel wear market is in progress, with plans to open shortly in Mumbai’s Jio World Plaza mall (Page 4).
→Continued store expansions and sales growth remain a focus for FY ‘24, indicating ongoing capital expenditure in retail footprint (Page 4).
→Expansion plans for jewelry brand Messika, including opening a couple of points of sale, as part of a learning phase with expectations of significant impact in 2-3 years (Page 5).

How does Ethos Ltd rank vs peers in Consumer Durables?

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1Ethos Ltd

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