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Go Fashion records PAT of Rs 20.6 crore in Q2; EBITDA margin at 30.5%

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Go Fashion (India) has reported 3% rise in net profit to Rs 20.6 crore on a 10% increase in total revenue to Rs 208.5 crore in Q2 FY25 over Q2 FY24.

EBITDA improved by 12% to Rs 63.6 crore while EBITDA margin expanded by 50 basis points to 30.5% in September24 quarter.

Profit before tax in Q2 FY25 stood at Rs 28.2 crore, up by 9% from Rs 29.3 crore in Q2 FY24.

Gautam Saraogi, CEO, Go Fashion (India), said: "We have successfully sustained our growth momentum despite the ongoing challenges in the apparel retail sector. For H1 FY25, our revenue grew by 13% to Rs 429 crore and our EBITDA stood at Rs 136 crore, a growth of 12%.

 

Despite a softer demand environment, we have maintained our EBITDA Margins at 32%. This is due to an improved product mix and our high focus on maintaining operational and cost efficiency.

Our full-price sales accounted for 95%, with an average selling price of Rs 742. In a challenging demand environment, this underscores strong customer loyalty and acceptance of our product and its pricing. Our brand's ability to not rely on discounting sets us apart in the industry. In H1 FY25, we added a net of 41 new stores, bringing our total store count to 755.

Inventory days stood at 97 days, compared to 104 days in March 2024. We anticipate stronger demand in the upcoming festive season, supported by early positive trends in footfall. For FY25, we expect inventory days to stabilize between 90-95 days.

We continue to prioritize cash efficiency and have achieved a Pre-Ind AS operating cash flow of Rs 55 crore. Moving forward, our target is to convert more than 50% of our EBITDA into operating cash flows by strategically focusing on maintaining inventory days. This will further strengthen our financial position.

Our strategy of positioning ourselves as the go-to brand for all categories of women's bottom wear, coupled with our focus on quality and competitive pricing, is expected to drive sustainable growth in the years to come."

Go Fashion (India) is involved in the retailing of women's bottom wear products under its brand, Go Colors. The products are sold in the domestic market through its extensive pan India retail channel comprising 755 EBOs and around 2,387 large format stores.

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First Published: Oct 25 2024 | 2:23 PM IST

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