Go Fashion (India) (GOCOLORS) Q4 20/21 earnings summary

Executive summary

• FY21 revenue from operations fell 36.1% YoY to ₹25,066.85 lakh; net loss was ₹353.84 lakh, with COVID-19 lockdowns halting operations for part of the year. Management expected improved performance in FY22.

• Cost restructuring and process-efficiency initiatives helped reduce losses despite the revenue decline; stores reopened progressively by the financial-statement approval date.

Financial highlights

• Revenue from operations was ₹25,066.85 lakh vs ₹39,201.44 lakh; total income was ₹28,225.27 lakh vs ₹39,683.89 lakh in FY20.

• PBT was a loss of ₹313.45 lakh vs profit of ₹6,828.59 lakh; PAT was a loss of ₹353.84 lakh vs profit of ₹5,263.41 lakh.

• Total expenses declined to ₹28,538.71 lakh from ₹32,855.30 lakh; finance costs increased to ₹2,056.88 lakh from ₹1,647.16 lakh.

• Operating cash flow was ₹8,985.21 lakh vs ₹5,721.16 lakh; cash and cash equivalents at year-end were ₹276.37 lakh after cash-credit netting.

Outlook and guidance

• Management cited market recovery after the initial post-lockdown slump and was positive about delivering improved performance in FY22.

• Local lockdowns during April and May 2021 affected operations; cost reduction efforts continued while aiming to protect employees and other stakeholders.