Vedant Fashions (MANYAVAR) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 was marked by exceptionally low wedding dates, resulting in a non-wedding quarter and significant sales impact, but core consumer KPIs and profitability remained resilient.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on July 29, 2024, with no material misstatements identified.

• Retail expansion was strategically deferred to later quarters, with a healthy pipeline for new store rollouts planned for H2.

• July showed positive trends, especially in Tier 2 and Tier 3 cities, reinforcing confidence for the rest of the year.

Financial highlights

• Q1 FY25 consolidated revenue from operations was ₹2,398.22 million, with customer sales at INR 329 crore; revenue declined 23% year-over-year.

• Gross margin stood at 67.7%, EBITDA margin at 47.8%, and PAT margin at 26.1%, with PAT at INR 62.5 crore.

• Consolidated net profit for Q1 FY25 was ₹624.89 million, compared to ₹919.45 million in Q1 FY24.

• SSSG for Q1 FY25 was -27.2% year-over-year, reflecting the negligible wedding season.

• Advertising and promotional spend was reduced to 2.5-3% of revenue, compared to the typical 5-6%.

Outlook and guidance

• Business is expected to normalize with the upcoming festive and wedding season, with a strong H2 anticipated.

• Retail expansion and new brand launches are planned for the remainder of the year, with a focus on major wedding markets and a 14-15% retail area addition over the mid-term.

• Significant growth potential remains for emerging brands and further retail expansion both within and outside India.