Q4 2024 Vedant Fashions Ltd Earnings Call Transcript
Key Points
- Vedant Fashions Ltd (BOM:543463) successfully expanded its retail footprint by approximately 2.34 lakh square feet in FY24, demonstrating a commitment to enhancing the shopping experience.
- The company reported a revenue growth of 6.3% in Q4 FY24 compared to Q4 FY23, with revenue from operations around INR 363 crores.
- Vedant Fashions Ltd (BOM:543463) maintained industry-leading gross margins of around 67.1% and EBITDA margins of 49% in Q4 FY24.
- The company launched its first exclusive brand outlet (EBO) for the Mohey brand, measuring about 7,500 square feet in Bengaluru, indicating a strategic move to enhance brand presence.
- Despite a challenging year, the company maintained a healthy cash conversion ratio of approximately 81.4% and a robust return on capital employed (ROCE) of around 85.3%.
- The overall performance in FY24 was impacted by significantly lower weddings and muted consumer sentiment, leading to a challenging business environment.
- Receivables increased from around 130 days to 150 days, indicating potential issues with cash flow management and credit policies.
- The proportion of stores where Vedant Fashions Ltd (BOM:543463) pays the rent increased, potentially leading to higher operational costs.
- The company faced a higher base effect from the previous year, which was post-COVID, making year-over-year comparisons less favorable.
- The first quarter of FY25 is expected to be weak due to almost no wedding dates, which could impact short-term revenue growth.
Ladies and gentlemen, good day, and welcome to Vedant Fashions' Q4 FY24 Conference Call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Varun Singh from ICICI Securities. Thank you, and over to you, sir.
Yes. Thank you, sir. On behalf of ICICI Securities, it's our pleasure to host Vedant Fashions' earnings conference call. So today, we have with us from the management, Mr. Vedant Modi, Chief Revenue Officer; and Mr. Rahul Murarka, Chief Financial Officer. We can kick start this conference with the results discussion followed by Q&A.
So yes, that's it from my side. Thank you, and over to you, sir.
Thank you. Thank you very much. Good afternoon, and a warm welcome to all the participants. I am Vedant Modi, the Chief Revenue Officer of the company. Thank you for joining us today to discuss the
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