Metro Brands (METROBRAND) Q4 20/21 earnings summary

Executive summary

• COVID-19 closures sharply reduced FY21 sales and profit; trading improved gradually after reopening, while cost controls and online growth helped support operations.

• Store network reached 586 across India, with 59 new stores opened, including 3 relocations.

Financial highlights

• Standalone gross sales were ₹919.43 crore vs ₹1,411.89 crore in FY20, down 34.88%; PAT was ₹72.52 crore vs ₹151.88 crore, down 52.25%.

• Consolidated gross turnover was ₹938.52 crore vs ₹1,512.65 crore, down 37.96%; consolidated PAT was ₹64.62 crore vs ₹160.58 crore, down 59.77%.

• Standalone revenue from operations was ₹788.74 crore vs ₹1,209.63 crore; PBT was ₹91.14 crore vs ₹207.08 crore.

• Standalone EBITDA was ₹134.98 crore vs ₹245.47 crore; a ₹51.88 crore COVID-related rent concession was recognized in other income.

Outlook and guidance

• FY22 began amid second-wave lockdowns; gross sales for the first two months were ₹83.50 crore, with 589 stores operating at the reporting point.

• Long-term industry outlook was positive, supported by rising incomes, favorable demographics, urbanization and expanding e-commerce; recovery remained dependent on pandemic containment and consumer confidence.

• Priorities include product freshness, innovative designs, customer service, brand development, inventory management and technology use.