Indian company Cantabil Retail's revenue climbs 14% in H1 FY24

02 Nov '23

3 min read

Pic: Cantabil Retail

Insights

Cantabil Retail India Limited reported a 14 per cent increase in H1 FY24 revenue to ₹247 crore but saw a decline in EBIDTA to ₹64 crore.
PAT margin also decreased to 8 per cent.
The company expanded by 35 stores, totalling 482, with plans for 700-plus in the next 2-3 years.
For Q2 FY24, the company reported a revenue increase of 16 per cent at ₹135 crore.

Leading apparel manufacturer and retail company Cantabil Retail India Limited has reported a 14 per cent growth in its unaudited revenue from operations for the first half of fiscal 2024 (H1 FY24), recording ₹247 crore, up from ₹217 crore during H1 FY23.

However, EBIDTA for H1 FY24 slightly decreased, standing at ₹64 crore compared to ₹66.7 crore in H1 FY23. This dip also reflected in the EBIDTA margin which settled at 25.9 per cent for H1 FY24, a decrease from the 30.8 per cent in H1 FY23.

The profit before tax (PBT) for the period was reported at ₹24 crore, witnessing a drop from ₹31.1 crore in H1 FY23. Correspondingly, the PBT margin also saw a contraction, from 14.4 per cent in H1 FY23 to 9.7 per cent in H1 FY24. The profit after tax (PAT) in H1 FY24 amounted to ₹19.8 crore, down from ₹23.4 crore in the previous year, resulting in a PAT margin of 8 per cent, as opposed to the 10.8 per cent in H1 FY23, the company said in a press release.

On the operational front, the company showed a significant expansion, adding a net of 35 new stores during H1 FY24. This addition brings their total store count to 482 as of September 30, 2023. With an ambitious vision, Cantabil Retail plans to further extend its reach, aiming to increase the store count to over 700 in the forthcoming 2-3 years.

For the second quarter of fiscal 2024 (Q2 FY24), the company continued its upward trajectory in revenue from operations, marking a 16 per cent growth at ₹135 crore, in contrast to ₹116 crore in Q2 FY23. Despite this, EBIDTA stood at ₹29.6 crore, a slight reduction from ₹31.3 crore in Q2 FY23, with the EBIDTA margin reducing to 21.9 per cent from 27 per cent. PBT for Q2 FY24 was ₹8.8 crore, down from ₹12.5 crore in Q2 FY23, and the PAT for the quarter was reported at ₹7.5 crore, a dip from the ₹9.3 crore in Q2 FY23. The PBT and PAT margins for Q2 FY24 were 6.5 per cent and 5.5 per cent, respectively.

“Looking forward we remain cautiously optimistic. Our focus is to provide superior value to our consumers, drive competitive volume growth, and invest behind our brand. Notwithstanding the external slowdown, we are confident that we are on the right path to execute the growth strategy. We anticipate a rebound in discretionary spend with the onset of the festive season, propelling the company’s growth trajectory further in the second half,” said Vijay Bansal, chairman and managing director.

Fibre2Fashion News Desk (DP)

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