Vedant Fashions (MANYAVAR) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue rose 30.2% YoY to ₹13,549.3m; PAT increased 36.3% to ₹4,291.1m, with a 31.7% PAT margin.

• Growth reflected stronger customer sales, store expansion and an asset-light, franchise-led model; the portfolio spans Manyavar, Mohey, Twamev, Mebaz and Manthan.

Financial highlights

• Consolidated EBITDA was ₹6,783m, up 30.1% YoY, with a 50.1% EBITDA margin; gross profit was ₹9,126m, up 31.2%, with a 67.4% gross margin.

• Consolidated PBT rose 36.1% to ₹5,758.4m; EPS increased to ₹17.68 from ₹12.90 YoY.

• Operating cash flow reached ₹4,698.1m versus ₹3,510.2m; cash and cash equivalents were ₹97.5m at year-end.

• Other income included ₹180.2m gain on fair valuation of FVTPL investments and ₹59.1m net profit on investment sales; these contributed to reported results.

Outlook and guidance

• Growth priorities: expand retail in India and overseas, strengthen emerging brands through up-selling and cross-selling, use targeted marketing, and pursue acquisitions with discipline.

• Management sees opportunity in multi-day and multi-event weddings, higher spending, preference for branded celebration wear and the shift to ready-to-wear ethnic apparel.

• Digital transformation’s first phase moved CRM, e-commerce and MarTech to new technology stacks; the next phase is intended to support an omnichannel customer journey.