We are happy to share that your Company is growing its business at an interestinginflection point in the nation's journey India is now the world's sixth - largest and alsothe fastest-growing major economy.
The country's economic growth is largely driven by the consumption boom across Tier-III and III cities and small towns. The burgeoning middle-class with higher disposableincome growing youth population greater affinity to brands and global trends rapidformalisation of the economy and faster adoption of technology and digitisation willcontinue to drive India's fashion momentum. Operating against
While sustaining positive movement in same store retail sales performance across itsBrand Factory and Central formats the Company logged an industry-leading ROCE at 12% andtripled the EPS to ' 6.63.
this backdrop your Company is poised to be the preferred partner for thefashionconscious Indian.
Future Lifestyle Fashions (FLF) capitalised on each of these levers by seamlesslymoving into an ecosystem of greater formalisation after the implementation of the Goodsand Services Tax (GST).
The Union Government has facilitated higher degree of transparency and accountabilityhastening the pace of economic progress. Apart from the longterm benefits of a unified taxregime the organised sector in particular stands to gain from GST Despite some hiccupsthe nation surpassed China's growth rate by year-end registering 7.2% growth in theJanuary-March 2018 quarter
This rapid growth marries well with your Company's ambition to be the leading lifestylefashion company in India by creating unique brands and shopping experiences that willbring alive the Indian idiom of fashion. FLF is building an end- to-end fashion ecosystemthat utilises the latest in technology and data in every aspect of the value chain -integrating suppliers. warehouses. logistics support stores shopping baskets andcustomers - to drive decisions in buying merchandising advertisement management andoperations.
Technology reduces space and time. and enhances social interaction. It will be the keydifferentiator in the near-term future.
During the year. your Company added nearly a million square feet in retail space.
Launching eight new Central stores and eleven new Brand Factory outlets.
FLF's diversified portfolio of power brands. such as Lee Cooper aLL. etc. constituted63% of overall sales of own brands. Your Company also invested in fresh brands like Alice& Mae. and Ancestry. to bring one-of-a-kind experience to customers. underlining FLF'scommitment towards energising Indian fashion.
One of the industry firsts in the year included a ticketed shopping event at BrandFactory. The chain introduced novel cover charge concept. wherein customers paid a specialfee to access exclusive offers ahead of other customers. The event generated unprecedentedinterest and enthusiasm from loyal customers. The company has enabled multiple paymentoptions. including all major mobile payment wallets as well as Future Group's own wallet.Future Pay. We are happy to share that almost 10% of business now comes from customersusing the Future Pay wallet.
At the end of FY 2017-18 FLF's net profit was Rs 127 crore up 182.3% from theprevious year. and an EBITDA of Rs 443 crore up 21.8% from the last fiscal. The Company'srevenue from operations grew from Rs 3877 crore in FY 2016-17 to Rs 4498 crore in FY2017-18. While sustaining positive movement in same store retail sales performance acrossits Brand Factory and Central formats. the Company logged an industry-leading ROCE at 12%and tripled the EPS to Rs 6.6. Further CRISIL rated FLF AA- with positive outlook.
Going ahead the company is creating new platforms and initiatives that combine thephysical and digital world together Many brands like Cover Story aLL and Clarks amongothers offer dedicated e-commerce portals. At the same time. a strong push towards digitalcommunication and data from loyalty programs are helping us enable customers discover newbrands and experiences on digital platforms. Our core focus continues to be on convertingdigital eyeballs into footfalls at our stores. Extensive research has shown that whilecustomers love to discover products and brands online. their shopping basket is invariablyhigher when they visit and shop within physical environments. We are rolling out multipleinitiatives and platforms that allow Future Group's large member base to discover and buybrands and products from within our ecosystem.
The Company is now well geared to offer value in fashion catering to a wide variety ofapparel. accessories and footwear across all price points - keeping customers at the heartof every innovation. Our competent pool of resources. as well as agility and depth inunderstanding. will continue to help us stay ahead of the curve. We will continue toleverage the proven recipe of combining inimitable brands. a technology-led mind set anddelivering unique shopping experiences to meet the changing needs and expectations ofcustomers. We thank all our stakeholders for your continued support and encouragementthrough our journey.
Rewrite rules. Retain values.