Any current/future new fundraising through debt or equity?

As of September 30, 2023, Monte Carlo Fashions Limited had a cash balance of INR 247 crores and long-term borrowings of only INR 1 crore, indicating low debt levels. The company noted that the Jammu & Kashmir plant has subsidized debt with an interest subvention scheme at 2% of the cost, but no immediate need for additional funds was mentioned. There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the transcript. Management indicated that cash on the books might be used for dividends or buybacks, subject to board decisions. Overall, no current or futu

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

The company is planning a textile plant in Jammu & Kashmir (Kathua region). There have been significant delays in land procurement for the Jammu & Kashmir textile plant due to multiple government department approvals. Once land is procured, it will take approximately 12 to 15 months to make the plant operational. The company currently has a cash balance of INR 247 crores as of September 30, 2023. Cash is not specifically earmarked for the J&K plant since the plant will also have subsidized debt (interest subvention at 2%) to cover costs. Company has a cash approval of almost INR 100 crores eve

Future growth expectations in sales/revenue/volumes?

The company aims for double-digit growth, targeting 15%-20% revenue growth over the next 2-3 years. Growth driven by store expansion: planning to open 50-55 new stores in the current financial year, increasing to 60-65 stores annually in the next 2-3 years. Focus on increasing presence in regions like South and West India, expecting 35%-40% growth in these regions. Improved sales expected from summer wear segment, which has shown double-digit growth, and has better margins compared to winter wear. Expansion into the shoe business via a test launch in 40 larger stores to generate additional sal

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

The company expects to achieve double-digit growth of 15% to 20% over the next two to three years. Despite a flat revenue year expected for the current financial year, the company anticipates continued growth driven by store expansions and increasing sales in specific categories. Margins are expected to be maintained around last year's EBITDA levels, plus or minus 100 basis points. Expansion plans include opening 50 to 55 stores this financial year and targeting 60 to 65 stores annually for the next two to three years. The company is confident of improving same-store sales and growing

Current/ Expected Orderbook/ Pending Orders?

The company has reported a very good booking in the summer collection with double-digit growth compared to last year's summer booking (Page 8). There is no explicit mention of a specific current or expected order book value in the transcript. The management expressed confidence in continued growth of 15%-20% in the next two to three years driven by organic growth in existing stores and categories (Page 9). Inventory issues from the previous year have been addressed with production cuts and returns being managed; this should support smoother order fulfillment going forward (Page 6 and 12). Stor

IN US

Sale is live|00:00:00left today

Monte Carlo Fashions LtdQ3 FY23Textiles & Apparels

Monte Carlo Fashions Ltd Q3 FY23 Earnings Call Analysis

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

Price: ₹551P/E: 12.4Market Cap: ₹1.2K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 3

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 3

→The company aims for double-digit growth, targeting 15%-20% revenue growth over the next 2-3 years.
→Growth driven by store expansion: planning to open 50-55 new stores in the current financial year, increasing to 60-65 stores annually in the next 2-3 years.
→Focus on increasing presence in regions like South and West India, expecting 35%-40% growth in these regions.
→Improved sales expected from summer wear segment, which has shown double-digit growth, and has better margins compared to winter wear.
→Expansion into the shoe business via a test launch in 40 larger stores to generate additional sales.
→Inventory measures and reduced returns expected to stabilize sales and improve margins.
→The company anticipates growth from existing same stores and new EBOs while navigating challenges in MBO channel.

Margin guidance

Category 3

→The company expects to achieve double-digit growth of 15% to 20% over the next two to three years.
→Despite a flat revenue year expected for the current financial year, the company anticipates continued growth driven by store expansions and increasing sales in specific categories.
→Margins are expected to be maintained around last year's EBITDA levels, plus or minus 100 basis points.
→Expansion plans include opening 50 to 55 stores this financial year and targeting 60 to 65 stores annually for the next two to three years.
→The company is confident of improving same-store sales and growing the southern and western markets by 35% to 40%.
→The management is optimistic about normalizing inventory levels and reducing returns, which will positively impact profitability.
→Potential future strategic decisions like dividend payouts or share buybacks may also support shareholder returns.

3 more insights locked — sign up free to unlock

Fundraise plans

→As of September 30, 2023, Monte Carlo Fashions Limited had a cash balance of INR 247 crores and long-term borrowings of only INR 1 crore, indicating low debt levels.
→The company noted that the Jammu & Kashmir plant has subsidized debt with an interest subvention scheme at 2% of the cost, but no immediate need for additional funds was mentioned.
→There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the transcript.
→Management indicated that cash on the books might be used for dividends or buybacks, subject to board decisions.
→Overall, no current or future fundraising plans through debt or equity were disclosed in the discussions.

Order book

→The company has reported a very good booking in the summer collection with double-digit growth compared to last year's summer booking (Page 8).
→There is no explicit mention of a specific current or expected order book value in the transcript.
→The management expressed confidence in continued growth of 15%-20% in the next two to three years driven by organic growth in existing stores and categories (Page 9).
→Inventory issues from the previous year have been addressed with production cuts and returns being managed; this should support smoother order fulfillment going forward (Page 6 and 12).
→Store expansion is ongoing, with 24 stores opened already this fiscal year and 30 more planned in the second half, totaling 50-55 store openings for the year, which aligns with anticipated order flow and demand (Page 16).

Capex plans

Yes

→The company is planning a textile plant in Jammu & Kashmir (Kathua region).
→There have been significant delays in land procurement for the Jammu & Kashmir textile plant due to multiple government department approvals.
→Once land is procured, it will take approximately 12 to 15 months to make the plant operational.
→The company currently has a cash balance of INR 247 crores as of September 30, 2023.
→Cash is not specifically earmarked for the J&K plant since the plant will also have subsidized debt (interest subvention at 2%) to cover costs.
→Company has a cash approval of almost INR 100 crores every year.
→No immediate need to deploy cash, and Board may decide on dividends or buybacks.
→Expansion plans include opening 50-55 new stores in the current financial year, with future guidance to open 60-65 stores annually depending on macro environment.

How does Monte Carlo Fashions Ltd rank vs peers in Textiles & Apparels?

Pro feature

1Monte Carlo Fashions Ltd

Rev 3Mar 3

See full Textiles & Apparels sector rankings

Want more stocks like Monte Carlo Fashions Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio