Credo Brands Marketing (Mufti) , the company behind the popular men's casual wear brand MUFTI, has announced its financial results for the first quarter. The company reported a net profit of ₹63.00 million, showing a significant decline from ₹98.00 million in the same period last year.

Financial Highlights

• Revenue from operations remained relatively stable at ₹1.20 billion, compared to the same period last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹310.00 million from ₹334.00 million in the comparable quarter.
• The EBITDA margin declined to 25.85% from 26.96% year-over-year.
• Despite the challenges, the company maintained a strong balance sheet with a paid-up equity share capital of ₹130.74 crore.

Operational Performance

Credo Brands Marketing continued to expand its retail footprint, with a total of 444 Exclusive Brand Outlets (EBOs) across 247 towns and cities in India. The company added 3 new EBOs during the quarter, demonstrating its commitment to strategic expansion.

Sales Mix and Product Portfolio

The company's sales mix for the quarter was diversified across various channels:

The product mix for the quarter was:

Strategic Initiatives

Chairman and Managing Director, Mr. Kamal Khushlani, highlighted the company's focus on premiumization and digital transformation:

"We are entering a phase of transformation, anchored by our vision to position the MUFTI brand firmly within the premium segment of the Indian apparel market. We are accelerating the transformation of our retail footprint by opening 20 odd premium flagship stores, enhancing our presence in premium malls and high-street locations."

The company is also intensifying its digital marketing efforts, with sales from its own website growing by over 100% compared to the previous year.

Dividend Announcement

The Board of Directors has proposed a dividend of ₹3.00 per share, subject to approval at the forthcoming Annual General Meeting scheduled for September 22. The record date for the proposed dividend has been set as September 10.

Future Outlook

Despite challenging market conditions, particularly in Tier 2 and Tier 3 cities, Credo Brands Marketing remains committed to its strategic direction. The company plans to increase its advertising and marketing spend to 6-7% of revenues and 8-10% in subsequent years, anticipating benefits to materialize in future years.

As Credo Brands Marketing continues to navigate the evolving retail landscape, its focus on premiumization, digital growth, and strategic expansion aims to address the current profitability challenges and position the company for future growth in the competitive men's casual wear market.

Credo Brands Marketing Ltd. (ISIN: INE220Q01020) has announced impressive financial results for the fourth quarter, showcasing significant growth across key metrics. The company has also recommended a dividend, signaling confidence in its financial position.

Q4 Financial Highlights

Net Profit Surge

Credo Brands Marketing's consolidated net profit for Q4 jumped to ₹138.00 crore, marking a substantial increase from ₹71.00 crore in the same quarter last year. However, it's worth noting that this represents a sequential decrease from ₹183.00 crore in the previous quarter.

Revenue Growth

The company's Q4 revenue rose to ₹1,500.00 crore, up from ₹1,330.00 crore in the corresponding period of the previous year, indicating a healthy year-over-year growth of approximately 12.78%.

EBITDA Performance

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 grew significantly to ₹411.00 crore, compared to ₹309.00 crore in the same quarter last year. This represents a robust year-over-year growth of about 33.01%.

Improved Profitability

The EBITDA margin expanded to 27.40% in Q4, up from 23.23% in the year-ago period, reflecting enhanced operational efficiency and profitability.

Dividend Announcement

In a move that will likely please shareholders, Credo Brands Marketing has recommended a dividend of ₹3.00 per equity share. This dividend announcement comes on the back of the company's strong financial performance and may be seen as a way to reward investors for their continued support.

Performance Analysis

The Q4 results demonstrate Credo Brands Marketing's ability to grow its revenue while significantly improving its profitability. The substantial increase in EBITDA and EBITDA margin suggests that the company has been successful in managing its costs and improving operational efficiency.

While the quarter-on-quarter decrease in net profit from ₹183.00 crore to ₹138.00 crore might raise some questions, the year-over-year growth in both revenue and profitability paints a positive picture of the company's overall performance.

The recommended dividend of ₹3.00 per share further underscores the management's confidence in the company's financial health and its commitment to delivering value to shareholders.

As Credo Brands Marketing continues to navigate the competitive retail landscape, investors and market watchers will likely keep a close eye on how the company maintains its growth trajectory and profitability in the coming quarters.