Cantabil Retail India Ltd. projects to maintain a volume growth of around 15% in FY25, according to Shivendra Nigam, the Chief Financial Officer (CFO) of the company.
Speaking to NDTV Profit, Nigam outlined the company’s optimistic outlook for the upcoming quarters, with a particular focus on overall volume growth while continuing the momentum seen in Q1.
“We expect Q2 to see marginal growth. However, Q3 and Q4 are expected to be strong for us, with targets of 5% same-store sales growth and an overall volume increase of 15–18%,” said Nigam.
Cantabil Retail India’s revenue in Q1 grew by 14% year-on-year to Rs 128 crore from Rs 112 crore in the year-ago period. The company's Ebitda jumped 14% to Rs 39.4 crore in Q1 from Rs 34.4 crore in the corresponding period of the previous fiscal, even as the Ebidta margin remained steady at 30.8%. The company’s net profit, however, dipped by 7% to Rs 11.4 crore from Rs 12.3 crore reported in the first quarter of FY24.
On gross margins, Nigam said, “Our gross margin improved from 65% last year to 66% in Q1 this year, and we are maintaining this margin on an annual basis at 55–56%. Like we have always said, gross margin is very important for us.”
Cantabil Retail is also expanding its product mix, particularly in the women’s wear and accessories segments.
“Last year, menswear contributed 83% of our revenue, while women’s wear grew from 9% to 10%, and accessories stood at 4% to 5%. With over 40 exclusive women’s and kids’ wear stores now operational, we expect women’s wear to increase to 14–15% of our overall mix in the coming years,” Nigam said.
The company’s geographical expansion plans remain focused on consolidating its presence in Central India while maintaining a stronghold in North and West India.
“As far as South India is concerned, we are not looking to expand there at this point,” Nigam added.
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