Stanley Lifestyles (STANLEY) Q1 24/25 earnings summary

Executive summary

• Successfully completed IPO on June 28, 2024, raising INR 200 crore (Rs. 1,810.85 million net of expenses) for expansion and growth in premium and luxury markets, with shares listed on BSE and NSE.

• Q1 FY25 revenue from operations reached INR 100.70 crore (₹1,007 million), up 5% year-over-year, with EBITDA of INR 20.10 crore (₹201 million, 25.6% growth) and PAT of INR 3.80 crore (₹38 million, 8.6% growth).

• Operates 61 stores across 25 cities, with 37 company-owned and 24 franchisee stores; 11 new stores planned for FY25.

• Maintained a net cash balance of INR 199.50 crore (₹1,995 million) post-IPO, supporting ongoing expansion plans.

• Focus on localization, sustainability, and supply chain optimization.

Financial highlights

• Revenue from operations: INR 100.70 crore (₹1,007 million), up 5% year-over-year.

• EBITDA: INR 20.10 crore (₹201 million), up 25.6% year-over-year; margin at 20%.

• PAT: INR 3.80 crore (₹38 million), up 8.6% year-over-year; EPS at ₹0.73.

• COCO stores generated 61.5% of revenue; B2C contributed 78%, B2B 22%.

• South India accounted for 83% of total revenue.

Outlook and guidance

• Pipeline of 11 new stores planned for FY25 across three formats.

• Targeting 100 stores in the next 3-4 years, with INR 900-1,000 crore top-line goal.

• Expecting improved gross margins from Q2 onwards due to price hikes, stabilized shipment costs, and increased localization.

• Anticipates strong demand as delayed premium housing projects are handed over starting H2 FY25.

• Management remains optimistic about long-term growth, with new product launches and tactical expansion planned.