Indian firm Cantabil Retail's revenue surges 7% in Q3 FY24

12 Feb '24

2 min read

Pic: Cantabil Retail

Insights

Cantabil Retail India reported a 7 per cent YoY revenue increase in Q3 FY24 to ₹174 crore.
However, EBIDTA dropped to ₹53.9 crore, with margins decreasing.
PBT and PAT also fell, with respective margins declining.
Over 9M FY24, the company's revenue grew by 11 per cent to ₹421 crore, but profitability metrics like EBIDTA, PBT, and PAT saw reductions.

Leading apparel manufacturer and retail company Cantabil Retail India Ltd has reported a 7 per cent year-on-year (YoY) increase in revenue from operations in the third quarter of fiscal 2024 (Q3 FY24), reaching ₹174 crore, up from ₹163 crore in Q3 FY23. Despite the rise in revenue, the company experienced a decrease in its earnings before interest, taxes, depreciation, and amortization (EBIDTA), which stood at ₹53.9 crore, down from ₹55.9 crore in Q3 FY23. Consequently, the EBIDTA margin reduced to 30.9 per cent in the quarter under review from 34.3 per cent in the corresponding quarter of the previous year.

Profit before tax (PBT) for Q3 FY24 also witnessed a decline, coming in at ₹30.9 crore compared to ₹36.2 crore in Q3 FY23, with the PBT margin falling to 17.7 per cent from 22.2 per cent. Profit after tax (PAT) followed a similar trend, registering at ₹24.1 crore for Q3 FY24, down from ₹27 crore in Q3 FY23, resulting in a PAT margin decrease to 13.8 per cent from 16.5 per cent, the company said in a press release.

Revenue from operations for the first nine months of fiscal 2024 (9M FY24) grew by 11 per cent to ₹421 crore, up from ₹380 crore in 9M FY23. However, EBIDTA for the period was ₹118 crore, compared to ₹123 crore in 9M FY23, with the EBIDTA margin reducing to 28 per cent from 32.3 per cent. The PBT for 9M FY24 was reported at ₹55 crore, down from ₹67.3 crore in 9M FY23, with a PBT margin of 13.1 per cent, decreased from 17.7 per cent. PAT for the first nine months stood at ₹43.9 crore, a decrease from ₹50.4 crore in 9M FY23, with the PAT margin falling to 10.4 per cent from 13.3 per cent.

“With considerable slowdown on the discretionary spending, we have demonstrated notable resilience in these tough conditions. Our company has delivered admirable financial results with a revenue growth of 11 per cent in 9M FY24 despite muted consumer demand and a warmer winter affecting our winter sales. We have observed that despite the overall muted market conditions our customers have upped their spends leading to increase in average bill value,” said Vijay Bansal, chairman and managing director of Cantabil Retail India.

Fibre2Fashion News Desk (DP)

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