07 August 2023, Mumbai
The company's performance seems to have been impacted by a net loss of Rs 161.62 crore, which is a notable contrast from the profit of Rs 94.44 crore in the same period of the previous financial year. Revenue up
The revenue, on the other hand, exhibited growth, rising by 11% to Rs 3,196.06 crore. However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) faced a decline of 37.6% down to Rs 292.3 crore.
The company attributed this loss to higher costs and subdued demand, which suggests that increased expenses and potentially weaker customer demand played a significant role in their financial performance during this period.
Festive spirit
It's noteworthy that the company expects a rebound in discretionary spending with the beginning of the festive season. This optimism could be based on historical trends where consumers tend to spend more during festive seasons.
In terms of expansion, the company's branded business network managed to add 28 stores on a net basis during Q1. Additionally, its ethnic businesses extended the network by 12 stores. This indicates a continued effort to expand their physical store presence despite the challenging financial performance.
Rising online sales
Furthermore, the company's e-commerce sales demonstrated growth, increasing by 12% year over year (YoY).
This suggests that their online sales channel has been performing relatively well compared to their overall financial performance.
It's important to note that financial results can be influenced by a variety of factors, including economic conditions, consumer behavior, industry trends, and management decisions.
The company's ability to navigate these factors and execute its strategies will likely determine its future financial performance.
