Go Fashion (India) (GOCOLORS) Q2 24/25 earnings summary

Executive summary

• Revenue and profit achieved double-digit growth in Q2 and H1 FY25, driven by retail expansion, operational efficiency, and a strong market position in branded women's bottom-wear.

• Maintains ~8% market share in branded women's bottom-wear, with a pan-India presence across 755 EBOs and 2,387 LFSs.

• Focused on expanding EBO network, leveraging technology, and strengthening omni-channel sales.

• Unaudited financial results for the quarter and six months ended September 30, 2024, were approved and reviewed by the Board and statutory auditors, with no material misstatements.

• Strategic closure of very small stores (under 200 sq ft) to focus on larger, more productive locations.

Financial highlights

• H1 FY25 revenue reached INR 429 crores (₹428.6 crore), up 13% YoY; Q2 FY25 revenue was INR 209 crores (₹208.5 crore), up 10% YoY.

• H1 FY25 PAT was INR 49.3 crores, up 6% YoY; Q2 PAT at INR 21 crores, up 3% YoY.

• H1 FY25 gross margin at 62.4%; Q2 at 63.1%.

• EBITDA margin at 31.7% in H1 FY25 and 30.5% in Q2 FY25.

• Cash and cash equivalents stood at INR 238 crores as of September 30, 2024.

Outlook and guidance

• Targeting 15%-20% growth, with optimism for a demand rebound during the festive season and H2.

• Plans to add 120–130 EBOs annually, focusing on Tier 2 and Tier 3 cities, and targeting ~80% of revenues from EBOs.

• Expecting low to mid single-digit SSG to support growth; inventory days expected to remain in the 90-95 day range by March 2024.

• No external funding required for expansion; strong cash position supports organic growth.

• The company will assess the impact of the Code on Social Security, 2020, once effective.