Despite a delayed 2014 winter, sales in the third fiscal quarter ended December 31, 2014 at fashion apparel marketer Monte Carlo Fashions, surged 18.7 per cent from a year earlier quarter.
Monte Carlo said revenues rose 18.7 per cent to Rs 3168.6 million from Rs 2668.7 million in the third quarter of fiscal 2013-14.
“The key reasons behind this strong revenue growth were the persuasive brand positioning and the robust distribution network the company has maintained,” Monte Carlo said.
In the reporting quarter, EBIDTA without considering other income zoomed by 35.4 per cent to Rs 720.2 million as against Rs 531.8 million in the same quarter of previous fiscal year.
EBIDTA margin drove up by 280 bps to 22.7 per cent from 19.9 per cent in the prior year quarter.
According to the apparel marketer, EBITDA rose due to other expenses as a percentage falling from higher revenues, resulting into an operating leverage as well as better operating efficiencies.
Other income includes interest and income from funds currently invested in fixed deposits.
In the quarter under review, profit after tax too expanded by 23.8 per cent to Rs 407.7 million from Rs 329.4 million in the corresponding quarter of fiscal 2013-14.
“Depreciation for the quarter was higher due to the change in depreciation policy as per the New Companies Act 2013,” Monte Carlo explained.
Cash profit for the third quarter of fiscal 2014-15 also ascended massively by 30.4 per cent to Rs 480.9 million compared to Rs 368.9 million in a year earlier quarter.
“With respect to understanding the impact of seasonality, it should be noted that a significant amount of revenue is generated primarily during the third quarter of each fiscal year,” Monte Carlo observed.
It added, “Winter clothing products are typically higher in value and accordingly generate higher revenue, in comparison with non-winter products.”
Monte Carlo added 11 exclusive retail outlets with a combined area of 10,895 sq. ft. While two of the stores are on a COCO Basis, the rest of the 9 stores are on FOFO Basis.
The company also recently started its e-commerce portal and has also established tie-ups with several other online portals.
Monte Carlo also said that it has also commenced its in-house production of socks, t-shirts and thermals. (AR)
Fibre2fashion News Desk - India