Metro Brands (METROBRAND) Q4 21/22 earnings summary

Executive summary

• FY22 rebounded strongly: consolidated revenue from operations rose 67.8% YoY to ₹1,342.93 crore; EBITDA reached ₹410.41 crore and PAT ₹214.20 crore, both record highs.

• Q4 FY22 was the strongest quarter on record for revenue and profit despite January COVID-related store closures; recovery accelerated from February.

• Growth was broad-based across formats, regions and channels, supported by a 624-store network, higher pricing, reduced discounting and improved sales mix.

Financial highlights

• Consolidated revenue from operations ₹1,342.93 crore, up 67.8% YoY; total income ₹1,401.57 crore, up 59.5% YoY.

• Consolidated PBT ₹283.14 crore, up 235.0% YoY; PAT ₹214.20 crore, up 231.4% YoY.

• EBITDA ₹410.41 crore, up 138% YoY; EBITDA margin 30.6% and PAT margin 15.9%, both corporate highs.

• Gross margin reached a record 57.9%, driven by lower discounted-sales contribution and a better mix; in-house brands contributed 73% of MBO product sales.

• Standalone basic/diluted EPS was ₹7.76/₹7.73 versus ₹2.73/₹2.73 in FY21; consolidated basic/diluted EPS was ₹8.01/₹7.98 versus ₹2.43/₹2.43.

Outlook and guidance

• Targeting 260 net new stores by FY25, expanding the 624-store base by ~40%; 80–85 openings planned across Metro, Mochi, Walkway and Crocs in FY23, plus five FitFlop stores.

• Gross margins are expected to normalise to pre-COVID levels of 55%–56% in coming quarters.

• Near-term headwinds include inflation, input-cost volatility and supply disruptions; plans include vendor coordination, elevated inventory for the festive period and selective pricing actions if needed.

• Medium- and long-term outlook remains positive, supported by store expansion, e-commerce, third-party brand partnerships, allied businesses and selective inorganic opportunities.