26 October 2024, Mumbai
Net profit of Go Fashion (India) increased by 3 per cent to Rs 20.6 crore while the company’s revenues increased by 10 per cent to Rs 208.5 crore during Q2, FY25.
The company also registered a 12 per cent improvement in EBITDA to Rs 63.6 crore while EBITDA margin expanded by 50 basis points to 30.5 per cent in the quarter ended Sep’24. Go Fashion (India)’s profit before tax rose by 9 per cent to Rs 28.2 crore during the quarter as against Rs 29.3 crore in Q2, FY24.
Gautam Saraogi, CEO, Go Fashion (India), says, the company has successfully sustained its growth momentum despite the ongoing challenges in the apparel retail sector. In H1 FY25, its revenues grew by 13 per cent to Rs 429 crore and EBITDA rose by 12 per cent to Rs 136 crore.
Despite a softer demand environment, Go Fashion (India) has maintained its EBITDA margins at 32 per cent. This is due to an improved product mix and a high focus on maintaining operational and cost efficiency.
The company’s full-price sales accounted for 95 per cent, with an average selling price of Rs 742. In a challenging demand environment, this underscores strong customer loyalty and acceptance of its product and its pricing. In H1 FY25, it added a net of 41 new stores, bringing its total store count to 755.
Moving forward, Go Fashion (India ) aims to convert more than 50 per cent of its EBITDA into operating cash flows by strategically focusing on maintaining inventory days. This will help further strengthen the company's financial position.
The company’s strategy of positioning itself as the go-to brand for all categories of women's bottom wear, coupled with its focus on quality and competitive pricing, will help drive sustainable growth in the years to come.
