Vedant Fashions (MANYAVAR) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 was marked by exceptionally low wedding dates, resulting in performance similar to a non-wedding quarter and impacting sales volumes.

• Despite weak seasonality, core consumer KPIs, margins, and profitability remained strong, supported by a resilient business model.

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

• Marketing spend was consciously reduced in Q1 to preserve resources for the upcoming festive and wedding season.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on July 29, 2024.

Financial highlights

• Q1 FY25 consolidated revenue from operations was ₹2,398.22 million, with customer sales at INR 329 crore.

• Gross margin stood at 67.7%, EBITDA margin at 47.8%, and PAT margin at 26.1%, with EBITDA of INR 115 crore.

• PAT for Q1 FY25 was INR 625 mn (margin 26.1%), compared to INR 919 mn (margin 29.5%) in Q1 FY24.

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

• Advertising and promotion 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 onset of the festive and wedding season in H2.

• July showed positive trends, especially in Tier 2 and Tier 3 cities, reinforcing confidence for the remaining nine months.

• Major retail expansion and marketing investments are planned for H2, with expectations to achieve annual area addition targets.

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

• Focus on up-selling, cross-selling, and targeted marketing to enhance brand appeal and drive future growth.