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Apparels & Accessories company Go Fashion (India) announced FY24 results:
Financial Highlights:
- Revenue from Operations: Rs 763 crore up by 15% YoY
- Gross Profit: Rs 471 crore up by 17% YoY
- EBITDA: Rs 242 crore up by 14% YoY
- PAT: Rs 83 crore, no change YoY
Cash Flow from Operations (OCF):
- OCF (Post IND-AS 116) for FY24 stood at Rs 219 crore as compared to Rs 104 crore for FY23
- OCF (Pre IND-AS 116) for FY24 showcased a strong turnaround and stood at Rs 111 crore as compared to Rs 20 crore for FY23
- RoCE stood at 19.1%; RoE stood at 16.2% for FY24
- Cash & Cash Equivalents stood at Rs 198.4 crore as on 31st March 2024
Commenting on the Result, Gautam Saraogi, CEO, Go Fashion (India) said, “During FY24, our Company achieved a growth of 15% Y-o-Y in Revenues to Rs 763 crore. EBITDA stood at Rs 242 Crore witnessing a growth of 14% Y-o-Y. Our PAT for FY24 stood at Rs 83 crore which was flat on a YoY basis.
The retail industry has witnessed a temporary decline in demand due to higher inflation and changing spending patterns. With prices on the rise, consumers are becoming more cautious with their purchases, favoring essential goods over discretionary spending. This has led to several retailers experiencing reduced foot falls impacting performance. Although the near-term outlook for the industry seems challenging, the underlying fundamentals remain strong for the long term.
We have reduced our inventory days by 22 days during FY24 compared to FY23. This is on account of prudent inventory management and rationalization at the warehouse level. We continue to remain focused on enhancing efficiency on the working capital front.
During FY24, we have achieved a Pre IND-AS 116 Operating Cash flow of Rs 111 crore, a significant turnaround compared to FY23. This translates into a conversion rate of 82% OCF to EBITDA for FY24.
We've added a net total of 84 stores to our portfolio bringing our total store count to 714 stores. While these net additions are slightly lower than anticipated, it reflects our strategic decision to close stores that didn't rebound post the COVID-19 pandemic and were a drag. Looking ahead, we aspire to add ~120 to 150 net new stores in FY25.
To further elevate the customer experience, we are also exploring omnichannel strategies that leverage technology to seamlessly connect physical and online shopping experiences in turn expanding our reach to consumers in various cities.”
FAQ’s on Go Fashion (India) Ltd Shares
