Metro Brands’ Q4 FY24 net profit more than doubles, hits INR 155.57 Cr

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May 23, 2024

Metro Brands, the footwear retail chain, has reported a remarkable 126.3 percent increase in its consolidated net profit, reaching INR 155.57 crore in the fourth quarter ended March 31st, 2024. This substantial growth contrasts with the consolidated PAT of INR 68.74 crore reported in a similar period one year ago, as indicated in the company’s regulatory filing.

In Q4 FY24, the company recorded a total income of INR 607.33 crore, marking a 7.8 percent increase from INR 562.87 crore in the corresponding period of the previous fiscal year.

Total expenses for the company rose to INR 503.73 crore in Q4 FY24, up from INR 468.28 crore in Q4 FY23.

Continue Exploring: Metro Brands teams up with Nextail to revolutionize retail with AI-driven merchandising solutions

According to the BSE filing, Metro Brands recorded a total income of INR 2,427.52 crore in the fiscal year 2023-24, an increase from INR 2,181.51 crore in the preceding fiscal year.

Commenting on the company’s financial performance, Nissan Joseph, CEO of Metro Brands Limited, expressed satisfaction, stating, “Despite the challenging backdrop of FY23 following the post-COVID-19 recovery, I am pleased to note an 11% year-on-year growth in our sales. Moreover, our sales per square foot have risen from INR 17,500 per sq. ft. in FY’19 to INR 18,700 per sq. ft. in FY24, showcasing our effective adjustment to evolving market dynamics and the continued recovery post-COVID.”

Continue Exploring: Indian footwear industry set for exponential growth, projected to reach $90 Billion by 2030: GTRI Report

He added, “Through our strategic initiatives and resilient operational frameworks, we’ve sustained our performance, ensuring effective fulfillment of our customers’ and stakeholders’ requirements. We remain confident that our adaptability and commitment to customer satisfaction will remain key drivers of our growth.”

Metro Brands has expanded its retail partnership with Crocs, securing exclusive ownership and operation rights for Crocs stores throughout western and southern India. Furthermore, the company will maintain operations for all current stores in northern and eastern India. The year saw the opening of a net total of 97 new stores, underscoring the company’s growth and expansion efforts.

Continue Exploring: Crocs India extends exclusive partnership with Metro Brands

Wildcraft India partners with Apparel Group to expand presence across GCC region

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May 23, 2024

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Wildcraft India, a renowned outdoor and adventure gear brand, has announced a strategic partnership with the Apparel Group, a prominent fashion and lifestyle retail player based in Dubai, to facilitate its expansion across the Gulf Cooperation Council (GCC) region.

As part of the collaboration, Apparel Group will team up with key retailers for Shop-in-Shop (SIS) collaborations, ensuring widespread availability of the Wildcraft brand across various consumer touchpoints, both offline and online.

The partnership aims to create an exclusive store network spanning all six Middle Eastern countries: Saudi Arabia, UAE, Oman, Qatar, Bahrain, and Kuwait.

Continue Exploring: Wildcraft eyes growth with INR 80 Crore investment in new warehouse facility

“This collaboration marks a significant step in positioning Wildcraft as a leader in outdoor and adventure gear retail within the GCC region,” stated Gaurav Dublish, Co-Founder of Wildcraft India.

Initially, Wildcraft intends to launch specific flagship stores, designed to offer immersive experiences for customers to engage with and understand the brand. This will be followed by the expansion of the store network in the years to come.

Moreover, Apparel Group intends to have Wildcraft listed on prominent e-commerce platforms.

“This partnership represents a significant stride in our continuous endeavor to bring innovative and high-quality brands to the forefront of global retail. We believe that Wildcraft’s distinctive product range will strongly resonate with our clientele, reinforcing our standing as pioneers in the international retail landscape,” remarked Neeraj Teckchandani, CEO of Apparel Group.

Continue Exploring: Safari Industries raises INR 229 Crore in funding from Lighthouse’s AIF, eyes expansion in Indian luggage market

Mamaearth parent Honasa Consumer achieves profitability for full fiscal year FY24

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May 23, 2024

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Honasa Consumer Ltd, the overarching company behind the direct-to-consumer brand Mamaearth, reported a net profit of INR 26.71 Cr in the fourth quarter of the fiscal year 2023-24 (FY24), the company disclosed today.

Significantly, throughout the fiscal year FY24, the startup saw profits totaling INR 120.96 Cr, a notable shift from the INR 120.55 Cr loss it faced in the preceding fiscal year.

Continue Exploring: Mamaearth parent Honasa Consumer plans merger of two subsidiaries to eliminate cost duplication and enhance efficiency

Regarding Q4, the net profit experienced a 7% quarter-on-quarter (QoQ) decrease from the previous quarter’s INR 28.91 Cr. Looking at it from a year-on-year perspective, the company has managed to reverse course from the INR 151.49 Cr loss it incurred in Q4 FY23.

Operating revenue surged by 18% to INR 427.16 Cr in Q4 FY24, up from INR 360.3 Cr in the same quarter of the previous year. However, this represented a 13% sequential decrease from the operational revenue of INR 488.2 Cr in Q3 FY24.

Continue Exploring: Mamaearth parent Honasa Consumer sees 250% YoY surge in net profit to INR 26.1 Crore in Q3FY24

In the quarter, the startup’s total expenditure also increased by 13% to INR 408.5 Cr from INR 362.44 Cr in Q4 FY23. The largest expenditure was attributed to purchase costs, amounting to INR 138.7 Cr in Q4 FY24, compared to INR 109.07 Cr in the corresponding quarter of the previous year.

Operating revenue for the fiscal year also saw a 26% increase, rising to INR 1,764.3 Cr from INR 1,394.8 Cr.

Continue Exploring: Mamaearth parent Honasa Consumer ordered to pay INR 56.6 Crores compensation to UAE distributor

Haircare brand Fix My Curls secures seed funding from Amazon Fund, others

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May 23, 2024

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Fix My Curls, a haircare brand, has secured an undisclosed sum in a seed funding round spearheaded by Amazon’s small and medium businesses-focused venture fund Smbhav Venture Fund.

The funding round also saw participation from India Quotient and DSG Consumer Partners.

The company will utilize the newly acquired funds to expand its product stack, drive innovations, strengthen its leadership team, and expand its customer base in tier II and III cities.

Established by entrepreneur Anshita Mehrotra in 2020, Fix My Curls, headquartered in Gurugram, has garnered attention for its line of products designed specifically for curly, wavy, and coily hair textures.

Continue Exploring: Hair care brand Traya secures INR 75 Crore funding from Xponentia Capita

Notably, Mehrotra brings substantial experience to the beauty industry, given her family’s establishment of Fixderma, a skincare brand renowned for its dermatological products. Transitioning from journalism, she embarked on founding Fix My Curls, driven by a vision to fill the longstanding gap in the Indian curly hair market with a tailored product line.

Fix My Curls provides an array of haircare items, encompassing shampoo, conditioner, accessories, and styling products, among others. Sourcing its ingredients from France and Germany, the startup ensures top-notch quality. Notably, its flagship offerings, like the curl-quenching hair butter and hair gel, are devoid of parabens and silicones, embodying a vegan and cruelty-free ethos across its entire product line.

In the haircare sector, Fix My Curls contends with competitors such as Curl Up, Amazing Grey, Anveya, and Zeme.

Mehrotra expressed, “Through innovation and a commitment to inclusivity, Fix My Curls is not merely reshaping haircare, but gradually evolving into a symbol of representation and acceptance within the Indian beauty scene.”

Fix My Curls has expanded its reach to 11 countries, spanning Germany, Romania, and Malaysia. Its products are readily accessible on prominent e-commerce platforms such as Amazon, Nykaa, and Blinkit, in addition to its official website.

In 2021, Amazon introduced its INR 1,850 crore (approximately $250 million) Amazon Smbhav Venture Fund, dedicated to driving the digitization of small businesses, fostering agri-tech innovations to enhance farmer productivity, and promoting healthtech solutions for improved universal healthcare access.

Continue Exploring: Haircare startup iluvia secures undisclosed Series A funding from Fireside Ventures and Multiply Ventures

Capital from the fund has already been allocated across diverse sectors, supporting ventures like FreshtoHome, XYXX, Hopscotch, Fitterfly, Cashify, The Good Glamm Group, M1xchange, smallcase, and Innovist.

In the past 18 to 24 months, the venture fund has broadened its focus to encompass opportunities in fintech products and services, e-commerce services, consumer brands, gaming, electrification, machine learning, and social media offerings.

Lulu Group to launch logistics and food processing center in Amritsar

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May 23, 2024

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Lulu Group International, a multinational retail corporation, is set to launch a logistics and food processing centre located in Amritsar, Punjab.

“Our group aims to establish a logistics and food processing center in Amritsar, dedicated to the storage, processing, grading, and packing of diverse local agricultural and other products,” stated Salim M A, director of Lulu Group.

“Amritsar boasts a dynamic business ecosystem, particularly renowned for its flourishing small and medium enterprises (SMEs). By integrating the city into our local product sourcing, we aim to significantly bolster SMEs, local farmers, agricultural cooperatives, and farmers’ producer organizations,” he further commented.

Continue Exploring: India’s food processing sector set to reach $535 Billion by 2025-26

Discussions have taken place with Taranjit Sandhu, a Lok Sabha candidate from Amritsar, and a delegation from Lulu Group will soon visit Amritsar to engage in discussions with SMEs and other suppliers, aiming to expedite the finalization of this collaboration.

In India, Lulu operates logistics and procurement centers across various states. Annually, these centers facilitate the export of agricultural and other products worth INR 10,000 crores, totaling more than 45,000 megatonnes, to its 270 retail stores spanning the Middle East, Far East, and Africa.

Established in 2000 by Kerala-native M. A. Yusuff Ali, Lulu Group International oversees a network of malls, hypermarkets, and retail ventures spanning GCC (Gulf Cooperation Council) nations, Egypt, Malaysia, Indonesia, and India. Presently, the company boasts over 250 hypermarkets and 25 shopping malls across 22 countries.

Continue Exploring: LuLu Group to establish two of India’s largest shopping malls in Ahmedabad and Chennai

McDonald’s North and East aims for 100+ McCafe stores by year’s end

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May 23, 2024

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McDonald’s North and East is set to expand its McCafe stores to over 100 by the end of this year, as stated by Rajeev Ranjan, MD of McDonald’s India – North and East.

Ranjan expressed, “Our goal is to have over 100 McCafe locations by the year’s end, accelerating the growth of our McCafé presence and continuing to offer our customers delightful, satisfying experiences.”

The comments come on the sidelines of the opening of 50th McCafe.

Continue Exploring: McDonald’s expands McCafe presence in India with 50th outlet launch in Noida

“We’re thrilled to introduce our 50th McCafé, offering expertly crafted, delicious coffee in a cozy atmosphere at an affordable price. We’re pleased to see the growing popularity and preference for our McCafé offerings among our valued customers.”

The company emphasized McCafe’s ambition to solidify its leadership in the coffee market, maintaining a steadfast dedication to affordability.

Continue Exploring: McDonald’s hits 400-store milestone in India with new outlet at Hyderabad Airport

Axis Capital initiates coverage on Zomato with ‘buy’ rating, sets price target of INR 254

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May 23, 2024

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Axis Capital, a brokerage firm, has initiated coverage of foodtech giant Zomato with a ‘buy’ rating, noting that the company provides a “compelling investment opportunity” to gain exposure to the country’s rapidly growing ecommerce market.

The brokerage has additionally established a price target (PT) of INR 254 for the stock, suggesting an upside of nearly 36% from its last close on Thursday (May 23).

The price also indicates an enterprise value-to-sales (EV/sales) ratio of 8.3X by June 2026. Axis stated that while the multiple isn’t low-cost, it’s fitting considering Zomato’s growth trajectory, execution, and rarity premium, particularly as it stands as the sole listed player with exposure to India’s broader ecommerce sector.

It’s important to highlight that Zomato achieved its fourth consecutive profitable quarter, reporting a net profit of INR 175 Cr in Q4 FY24, primarily driven by the significant expansion of its quick commerce business, Blinkit.

Continue Exploring: Zomato’s Q4 net profit surges 27% quarter-over-quarter to INR 175 Cr

In March 2024, Blinkit achieved positive adjusted EBITDA. Furthermore, its gross order value (GOV) for Q4 witnessed a notable 97% year-on-year (YoY) and 14% quarter-on-quarter (QoQ) growth, amounting to INR 4,027 Cr.

Conversely, Zomato’s food delivery business experienced a decline in gross order value (GOV) on a quarter-on-quarter (QoQ) basis, dropping to INR 8,439 Cr for the quarter.

Despite the subdued growth in the food delivery sector, Axis anticipates Zomato’s market share in this segment to expand to 54% from the present 50%, leading to a compound annual growth rate (CAGR) of 16% in the sector’s gross order value (GOV) by FY30.

The brokerage observed that Zomato is unlikely to substantially raise the commission it charges restaurants and brands, as they may resist such increases. Nonetheless, Axis suggests that Zomato could boost its revenue through higher platform fees for users and increased advertising revenue from restaurants and brands, thereby bolstering the company’s growth and profitability.

Continue Exploring: Bernstein raises Zomato’s price target to INR 230, upholds ‘OUTPERFORM’ rating following strong Q4 results

Furthermore, the brokerage highlighted that the food delivery segment remains a significant untapped opportunity.

Regarding quick commerce, Axis forecasts that Blinkit’s gross order value (GOV) will achieve a compound annual growth rate (CAGR) of 38% between FY24 and FY30, reaching $10.5 billion.

The brokerage indicated that Blinkit’s dominant position in the segment is projected to be fortified through effective execution of rapid expansion, a broader range of products, and synergies between Hyperpure and Blinkit, among other factors.

Continue Exploring: Blinkit more valuable than Zomato’s food delivery business: Goldman Sachs

In fact, the brokerage has placed its confidence in Zomato’s robust market dominance in both food delivery and quick commerce, even in the face of Swiggy‘s early advantage in both sectors.

“Analyzing Zomato and Swiggy across different strategic metrics reveals that Zomato’s market leadership in both crucial segments, despite Swiggy’s early advantage, stems from its effective execution,” stated Axis.

Presently, out of the 26 analysts covering Zomato, 22 hold a ‘buy’ or higher rating on the stock, with an average price target (PT) of INR 207.88.

Zomato’s shares closed today’s trading session approximately 0.9% higher at INR 187.15 on the BSE.

Continue Exploring: ICICI Securities raises Zomato’s price target to INR 300, citing strong growth and profitability metrics

Arvind Fashions Q4 net profit rises to INR 39.7 Cr, revenue grows 3.6% to INR 1,094 Cr

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May 23, 2024

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Arvind Fashions, a prominent player in the casual and denim sector,has reported a 39.09 percent increase in consolidated net profit to INR 39.67 crore for the March quarter. According to a regulatory filing, the company had posted a net profit of INR 28.52 crore for the January-March period a year ago.

In the last December quarter, Arvind Fashions sold its Sephora business to Reliance Retail. According to AFL, the profit from its continuing business stood at INR 25 crore, marking a 72 percent increase year-on-year.

During the quarter, AFL’s revenue from operations increased by 3.66 percent to INR 1,093.85 crore from INR 1,055.20 crore recorded a year earlier.

In the March quarter, AFL’s total expenses amounted to INR 1,053.26 crore, indicating a 2.19 percent increase.

Continue Exploring: Arvind Fashions reports multifold rise in Q3 net profit to INR 51.08 Crore; Sephora business sale boosts earnings

The company’s total income, which includes revenue from other sources, reached INR 1,106.84 crore, up 3.55 percent in the March quarter.

During a meeting on Tuesday, the AFL board recommended a final dividend of INR 1.25 per equity share of INR 4 each for the fiscal year 2024.

AFL runs retail outlets for renowned global brands like Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine.

For the financial year ending March 31, 2024, AFL’s net profit surged by 56.31 percent to INR 134.74 crore.

During FY24, its revenue from operations increased by 4.65 percent to INR 4,259.12 crore.

Commenting on the results, MD & CEO Shailesh Chaturvedi stated, “FY24 has been a standout year, with sharper execution leading to improvements in all key financial metrics, despite a subdued market environment. Our continued focus on retail excellence resulted in a healthy 4 percent like-to-like (LTL) growth, contributing to a 120 basis points improvement in the EBITDA margin for the full year.”

Continue Exploring: Arvind Fashions aims to be debt-free in 2 years with a franchise-based expansion strategy

Regarding the outlook, he stated, “Moving forward, we anticipate strong growth while maintaining a decisive focus on scaling our existing brands through innovative retail formats and accelerating our store network expansion, which will lead to further improved margins.”

On Tuesday, shares of Arvind Fashions Ltd closed at INR 491 on the BSE, rising by 4.5 percent.

ITC’s Q4 net profit dips 1.3% to INR 5,020 Cr, final dividend announced

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May 23, 2024

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Cigarettes-to-soap major ITC Ltd recorded a standalone net profit of INR 5,020.20 crore in the March 2024 quarter, indicating a 1.3 percent decrease year-on-year (YoY). This figure is slightly lower than the net profit of INR 5,086.86 crore reported in the same period last year. Additionally, on a sequential basis, the bottom line remained almost stagnant, comparing with INR 5,572.07 crore from the December 2023 quarter.

The company’s revenue from operations held steady at INR 17,571.72 crore in the fourth quarter of the financial year 2023-24, reflecting a 1.4 percent decrease year-on-year (YoY). This compares with a revenue of INR 17,506.08 crore in the same quarter of the previous financial year. Additionally, in the quarter ending on December 31, 2023, the company’s revenue reached INR 17,224 crore.

Continue Exploring: ITC’s emphasis on premium products propels personal care business, doubles sales contribution to 38%

In the quarter, EBITDA stood at INR 6,162.6 crore, marking a 0.8 percent decline, with the EBITDA margin falling 70 basis points year-on-year to 37.2 percent. The company’s earnings were impacted by stagnant cigarette volumes and reduced FMCG margins.

The company has proposed a final dividend of INR 7.50 per share for the financial year ended on March 31, 2024, pending approval by the Members at the upcoming annual general meeting (AGM) scheduled for Friday, July 26, 2024. If approved, the final dividend will be distributed between July 29, 2024, and July 31, 2024.

Continue Exploring: After Amazon, ITC becomes second company to utilize inland waterways for FMCG transport

Breaking down by segments, revenue from the cigarettes business saw a 7 percent year-on-year increase to INR 8,689 crore in the March 2024 quarter, compared to INR 8,092 crore in the corresponding quarter of the previous year. Similarly, the profit before tax (PBT) for the cigarettes business rose by 5 percent year-on-year to INR 5,157 crore in the preceding quarter.

The FMCG-others business recorded revenues of INR 5,308 crore in the fourth quarter, reflecting a 7 percent increase from INR 4,951 crore reported in the same quarter of the previous year. However, the profit before tax (PBT) for this segment declined by 5 percent to INR 480 crore.

Following the quarterly earnings, ITC shares remained largely unchanged on Thursday. The stock was observed at INR 445, a marginal increase of one percent, with a total market capitalization exceeding INR 5.52 lakh crore. This comes after the stock closed at INR 439.75 in the preceding trading session.

Continue Exploring: BAT to stay off ITC Hotels’ board amid demerger plans

Virat Kohli-backed One8 Commune to expand with INR 35 Cr investment, doubling outlets by FY25; eyes international expansion

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May 23, 2024

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Virat Kohli-backed restaurant chain, One8 Commune, is planning to invest approximately INR 35 crore to more than double its outlets by FY25, as shared by Vartik Tihara, Co-Founder of One8 Commune.

At present, the brand operates in six cities – Bengaluru, Hyderabad, Pune, Delhi, Mumbai, and Kolkata – boasting nine outlets. Additionally, it intends to venture into international markets, with its inaugural outlet set to open in Dubai soon.

“Currently, we’re in the process of setting up eight outlets in cities such as Chennai, Indore, Jaipur, Mohali, Ludhiana, Delhi, Goa, and Hyderabad. Over the past two years, we’ve been consistently opening 3-4 new outlets annually,” he stated.

Continue Exploring: Virat Kohli’s one8 commune opens its largest venue in Bengaluru

“By the end of FY24, we aim to inaugurate at least five outlets, followed by an additional five outlets by the end of FY25,” he elaborated.

On average, each One8 Commune outlet occupies a 5,000 sq ft area, with a corresponding capital expenditure ranging between INR 2.5-3 crore.

Additionally, by mid FY25, the brand plans to add more verticals, such as a café offering Virat Kohli’s merchandise.”We’re set to provide healthy smoothies, nutritious bowls, and high-protein diet options in the cafes,” he affirmed.

The bootstrapped brand has been experiencing a year-on-year growth of 14-15 percent. Moreover, each of its outlets reaches the breakeven point within two years of operation.

“We closed the previous fiscal year with INR 100 crore in revenue, and for the current fiscal year, we aim to double our revenue, reaching INR 200 crore,” he said.

Continue Exploring: One8 Commune expands its footprint with a new elegant outpost in Gurgaon

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