In This Article:
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Revenue: INR160.6 crore, a growth of 2.2% year on year for Q2 FY25.
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Net Profit After Tax: INR2.4 crore, a year on year increase of 31.7% for Q2 FY25.
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Gross Margin: 48.3% for Q2 FY25, up by 360 basis points year on year.
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EBITDA: INR19.3 crore, reflecting a year on year growth of 9.4% for Q2 FY25.
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EBITDA Margin: 12% for Q2 FY25.
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Half-Yearly Revenue: INR314.5 crore, a decline of 0.2% year on year for H1 FY25.
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Half-Yearly Gross Margin: 47.7% for H1 FY25.
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Half-Yearly EBITDA: INR36.7 crore, up by 2.2% year on year for H1 FY25.
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Half-Yearly Profit After Tax: INR3 crore, a decline of 12.3% year on year for H1 FY25.
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Retail Sales Contribution: 61.4% of revenue in H1 FY25.
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Store Count: Added 42 stores, total store count at 891 as of H1 FY25.
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Distribution Business Contribution: 32.7% of revenue in H1 FY25.
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Distribution Network: 764 distributors as of September 2024.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Khadim India Ltd (NSE:KHADIM) achieved a revenue of INR160.6 crore, marking a 2.2% year-on-year growth.
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The company reported a net profit after tax of INR2.4 crore, reflecting a significant year-on-year increase of 31.7%.
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Gross margin for the quarter improved by 360 basis points year-on-year, reaching 48.3%.
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Khadim India Ltd entered into a strategic partnership with Underline Fashion House, enhancing its retail footprint by offering Puma products.
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The company successfully completed the testing phase of its new athleisure line, gearing up for commercialization to tap into the growing trend.
Negative Points
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The company faced challenges during the critical pooja sales period due to a social crisis, impacting sales for 10 to 15 days.
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Inflationary pressures continue to strain the cost structure, affecting consumer spending habits and demand.
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Retail sales were flat, with no increase in average selling price (ASP) during the last quarter.
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Despite an increase in gross margins, EBITDA margins in the retail segment saw a drop due to increased personal expenses and advertising costs.
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The distribution segment is currently making a loss, with plans to achieve breakeven only by FY26.
Q & A Highlights
Q: What has led to the strong performance in the distribution segment, with a 24% revenue growth and a 650 basis points increase in gross margin? A: Indrajit Chaudhuri, CFO, explained that the increase is due to higher production of in-demand products, particularly those that were previously underproduced. The market demand has grown, especially in the PU and US segments, leading to improved margins.