June 17, 2024
Financial Results

Monte Carlo Fashions Reports FY24 Earnings Decline, Reveals Growth Plans

Monte Carlo Fashions Limited, a leading lifestyle apparel brand in India, announced its financial results for the fourth quarter and full fiscal year ending March 31, 2024. Despite facing challenges, the company continues to demonstrate a strong market presence and strategic growth initiatives.

In Q4-FY24, the company reported revenue of INR 2,065 million, a decline of 12.8% from INR 2,367 million in the same period last year. Operating expenses increased by 6.0% to INR 2,164 million from INR 2,042 million in Q4-FY23. The company’s EBITDA turned negative at INR 99 million, compared to a positive INR 325 million in Q4-FY23. Net profit after tax (PAT) was negative INR 190 million, compared to a positive INR 200 million in the previous year, with a PAT margin of -9.20% compared to 8.45% in Q4-FY23.

For the full fiscal year 2024, Monte Carlo Fashions reported revenue of INR 10,619 million, slightly down from INR 11,177 million in FY23. Operating expenses rose by 2.1% to INR 9,190 million from INR 8,998 million last year. EBITDA for FY24 stood at INR 1,429 million, down from INR 2,179 million in FY23, with an EBITDA margin of 13.46%, a decrease from 19.50% in the previous year. The company recorded a PAT of INR 610 million, a 54.0% decline from INR 1,327 million in FY23, with a PAT margin of 5.74% compared to 11.87% last year.

Monte Carlo’s product segment mix showed cotton products accounting for 65.6% of sales, woolen products 23.1%, kids’ apparel 6.7%, and home textiles 3.9%. The company operates through a distribution network of 411 exclusive brand outlets (EBOs), 2,116 multi-brand outlets (MBOs), and 1,324 national chain stores (NCS) and shop-in-shops (SIS). Additionally, Monte Carlo has a strong e-commerce presence across major platforms like Amazon, Flipkart, and Myntra, with significant growth in online sales.

Strategic initiatives included the opening of 13 new stores in Q4-FY24, with 7 company-owned and 6 franchise-operated outlets. The company emphasized deeper market penetration in existing areas and exploring new geographical markets, particularly in western and southern India. Plans for product diversification are underway, focusing on summer wear, athleisure, and ultra-premium clothing segments, along with growth in home textiles.

J. L. Oswal, Chairman and Managing Director of Monte Carlo Fashions, stated, “Despite a challenging year, our commitment to quality, innovation, and customer satisfaction remains unwavering. We are focused on strategic growth and operational excellence to navigate the market dynamics effectively.”

Looking ahead, Monte Carlo aims to continue its growth trajectory by enhancing its product offerings and expanding its retail footprint. The company remains committed to leveraging its strong brand equity and extensive distribution network to drive future growth and profitability.

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