Monte Carlo Fas.Q2 FY25

Monte Carlo Fas. Q2 FY25 Earnings Call Analysis

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

Price: ₹523P/E: 10.4Market Cap: ₹1.1K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • The company anticipates flat revenue growth for FY 2025 despite a 15% increase in EBOs, due to declining like-for-like sales in certain channels.
  • Management expects around 10% growth next year purely from internal efforts like increasing EBOs, MBOs, and online channels, even if demand remains flat.
  • Demand is expected to improve as RBI interest rates cut and inflation decrease, leading to double-digit sales growth in the next financial year.
  • Volume levels are expected to remain more or less the same as last year, with no major increase or decrease anticipated.
  • The number of MBOs is expected to decline, but average billing per MBO will increase due to conversion to larger shop-in-shop formats.
  • Online sales are growing and quick commerce partnerships are expected to contribute further.
  • Overall, the company is confident of double-digit growth next year supported by resolved inventory issues and better demand.

See what Monte Carlo Fas. management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • The management indicated that as of now, there are no plans for new fundraising through debt or equity.
  • The company currently has around INR 290 crores cash sitting on its books.
  • Utilization of cash for increasing growth prospects is "too early to call" at this stage.
  • The company continues its dividend policy and uses part of the cash for dividends.
  • Any changes or plans regarding cash utilization or fundraising will be communicated to exchanges in due course.

See what Monte Carlo Fas. management said on order book — free account, 30 seconds.

Capex plans

  • As of November 18, 2024, Monte Carlo Fashions has not disclosed specific plans for new or additional capital expenditure (capex) or strategic investments.
  • The management mentioned the company is focusing on opening 40 to 50 new Exclusive Brand Outlets (EBOs) in FY '25 as part of growth strategy.
  • Store expansion includes both company-owned and franchise-operated stores, with about 10-15% being company-owned, especially in high-rent areas like Delhi and the South.
  • No immediate plan for utilization of the INR 290 crore cash reserve, other than continuing dividend payments.
  • The company is enhancing operations by collaborating with quick commerce partners and Salesforce but has not specified any related capex.
  • Management indicated that any new policy or significant use of cash for growth would be communicated to exchanges in due course.

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How does Monte Carlo Fas. rank vs peers in Textiles & Apparels?

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Rev 3Mar 2

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