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Monte Carlo Fashions hits 20% upper limit on near 8-fold jump in Q2 net

Further, the company's board has approved incorporation of a wholly-owned subsidiary which will leverage the growth opportunities in the "Home Textiles"

Buzzing stocks | Textile sector | Q2 results

SI Reporter  |  Mumbai 

Shopping, fashion, retail, clothes

Shares of Monte Carlo Fashions were locked at the 20 per cent upper circuit at Rs 523.05, also its 52-week high on the BSE after the company posted robust set of numbers. The company's net profit jumped nearly eight-fold to Rs 33.91 crore in the September quarter (Q2FY22). The company manufacturing and trading of textile garments had profit of Rs 4.43 crore in Q2FY21. It had posted net loss of Rs 10.18 crore in June quarter (Q1FY22).

The company’s revenue from operations more-than-doubled or up 142 per cent year on year at Rs 238 crore from Rs 98.25 crore in a year ago quarter. Earnings before interest, tax, depreciation and amortization (ebitda) margin improved 686 basis point to 22.1 per cent from 15.2 per cent in previous year quarter.

During the quarter the company recorded strong volume growth, mainly on account of opening up of economy on the back of reduction in COVID 19 cases and removal of lockdown restrictions in most of the geographies.

The company has strengthened its retail presence in India with the opening of 12 new EBO’s during Q2FY22; with this the company has achieved a milestone of 300 EBO’s across 20 states and 4 union territories in India. Apart from thrust on retail network expansion, the company also accelerated its digital and omni channels during the quarter.

Meanwhile, the board has approved incorporation of a wholly-owned subsidiary of the company. The incorporation of the wholly-owned subsidiary will leverage the growth opportunities in the “Home Textiles” i.e. Rugs and Mink Blanket Fabric, and will help the company in becoming more agile and customer- focused.

Monte Carlo is a leading branded apparel company with a comprehensive range of woollens, cottons, cotton blended, knitted and woven apparels for Men, Women and Kids under the umbrella brand “Monte Carlo”.

During the last year, the lockdown restrictions caused a slump in retail sales of apparel for around 4-5 months. Moreover, the festive and wedding season sales were also deeply impacted.

Till 01:57 pm; a combined 679,000 shares had changing hands and there were pending buy orders for 118,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.86 per cent at 59,835 points. The stock had hit a record high of Rs 664 on January 10, 2018.

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First Published: Thu, November 11 2021. 14:18 IST