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Earnings Call

Credo Brands Marketing Earnings Call: Key Takeaways

Revenue and profit declined as management prioritizes a high-cost brand pivot (Mufti 2.0) despite soft consumer demand and margin pressure from GST reforms.

Why this was an Alfa AlertNot a filter event. Revenue and PAT declined YoY; results were not a material beat of guidance.
Highlights
Revenue growthRevenue fell 6% YoY to ₹146.1 crore due to muted demand.
MarginsGross margins temporarily impacted by GST reforms; EBITDA margin at 22.9%.
Demand visibilityCiting cautious consumer sentiment and lower footfalls across the apparel industry.
Management confidenceAspirational; emphasizing long-term premiumization despite current financial underperformance and degrowth.

Growth

Revenue degrew 6% to ₹146.1cr; PAT dropped significantly to ₹7cr due to muted festive demand and higher advertising.

Outlook

Management targets 25% EBITDA margin by Q4 and 20 new identity stores by fiscal year-end.

Risks

Advertising spend increasing to 8-10% of revenue could severely compress margins if top-line growth fails to materialize.

Source

Earnings Call filed with BSE, NSE: MUFTI. Summary written with AI assistance from the document.

Read the document ↗

Credo Brands Marketing Ltd: key numbers

Share price
₹81.16
Market cap
₹530.7 Cr
Revenue (annual)
₹592.1 Cr
Net profit (annual)
₹47.42 Cr
P/E (TTM)
10.2×Sector 66.2×
Promoter holding
54.99%+0.00% QoQ
FII holding
0.51%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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