Monte Carlo conducted the conference call for Q3 FY22:
Here are the conference call highlights:
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Here are the conference call highlights:
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Business Updates:
โข All the stores are operational with increase in travelling growth is expected come.
โข Online sales increase from 29cr to 48cr.
โข Advertisement has increase leading to decrease in margin.
โข Co. has witnessed 0 bad debt till now.
โข All the stores are operational with increase in travelling growth is expected come.
โข Online sales increase from 29cr to 48cr.
โข Advertisement has increase leading to decrease in margin.
โข Co. has witnessed 0 bad debt till now.
Industry Updates:
โข Indian Domestic Textile Market is expected to grow 10% CAGR for coming years.
"Mgmt expect Monte Carlo to be cheapest company with respect to its peer in term of PE Ratio"
โข Indian Domestic Textile Market is expected to grow 10% CAGR for coming years.
"Mgmt expect Monte Carlo to be cheapest company with respect to its peer in term of PE Ratio"
Business Mix:
(Revenue share in image)
Volume:
- Woolen: 13.73 lac piece (9.9 lac piece)- 30% growth
- Cotton: 40.76 lac piece (25.6 lac piece)- 70-80% growth
Co. would be expanding in South & West market and is targeting to open 10-15 more stores to increase the market.
(Revenue share in image)
Volume:
- Woolen: 13.73 lac piece (9.9 lac piece)- 30% growth
- Cotton: 40.76 lac piece (25.6 lac piece)- 70-80% growth
Co. would be expanding in South & West market and is targeting to open 10-15 more stores to increase the market.
Channel Selling:
โข Growth in online segment is growth at ~70% with young generation demand coming up.
โข Net realization from online channels is 1-1.5% less than the offlien channel.
โข Growth in online segment is growth at ~70% with young generation demand coming up.
โข Net realization from online channels is 1-1.5% less than the offlien channel.
Business Product:
โข Woolen sales are expected to remain good.
โข For December sales, co. expect the closing stock to remain at the last year level.
โข Rugs segment is expected to growth business at similar margins of 18-20%.
โข Cotton RM price is passed on the customer easily.
โข Woolen sales are expected to remain good.
โข For December sales, co. expect the closing stock to remain at the last year level.
โข Rugs segment is expected to growth business at similar margins of 18-20%.
โข Cotton RM price is passed on the customer easily.
Margin:
โข Closing stock was lesser than last year, hence there was volume as well as price growth.
โข Co. did witnessed pressure of increasing input cost (~18% increase in price) which was passed on to customer.
โข Co. guidance of 18-20% of margin increased to ~25%.
โข Closing stock was lesser than last year, hence there was volume as well as price growth.
โข Co. did witnessed pressure of increasing input cost (~18% increase in price) which was passed on to customer.
โข Co. guidance of 18-20% of margin increased to ~25%.
Presence across region:
โข Co. has
- 316 business outlets
- 2000+ multi brand outlets
- 730 national clearance shops
- 230 shopping malls
- All the online channels.
โข In last 9 months co. has opened 31 new stores.
โข Advertisement spend will be normal level of 2-3%.
โข Co. has
- 316 business outlets
- 2000+ multi brand outlets
- 730 national clearance shops
- 230 shopping malls
- All the online channels.
โข In last 9 months co. has opened 31 new stores.
โข Advertisement spend will be normal level of 2-3%.
Growth Drivers:
โข Change in business strategies had led to stupendous growth for the company with respect to competitors resulting in increase in market share of Monte Carlo.
โข Co. expects its strategy to positive driving the sales growth.
โข Change in business strategies had led to stupendous growth for the company with respect to competitors resulting in increase in market share of Monte Carlo.
โข Co. expects its strategy to positive driving the sales growth.
CAPEX
โข With PLI scheme for Rugs announce, Monte Carlo has announced a subsidy which will manufacture ~13mil sq meter per annum with total investment of 350cr over 5 year.
70:30 Debt / Equity
โข Co. has already applied for PLI scheme and will be approved shortly.
โข With PLI scheme for Rugs announce, Monte Carlo has announced a subsidy which will manufacture ~13mil sq meter per annum with total investment of 350cr over 5 year.
70:30 Debt / Equity
โข Co. has already applied for PLI scheme and will be approved shortly.
Other:
โข Employee cost has increase (but it is last 2 year growth). These is expected to decrease marginally with increase in volume.
โข Net Debt level remains 0
โข Net cash: 131cr. For this buyback or dividend route is propose to board.
โข Employee cost has increase (but it is last 2 year growth). These is expected to decrease marginally with increase in volume.
โข Net Debt level remains 0
โข Net cash: 131cr. For this buyback or dividend route is propose to board.
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