Winter chill is always a boon for surging sales of woolens. Despite delayed winter, Monte Carlo Fashions (MCFL), the Ludhiana-based woollen and cotton apparel manufacturer, has done reasonably well in Q3 FY 2015 increasing its total revenues by 18.7%: year-on-year to Rs 3168.6 mn from Rs. 2668.7 mn in Q3 FY 2014.
The Q3 FY 2015 EBIDTA without other income increased by 35.4% year-on-year to Rs. 720.2 mn from Rs. 531.8 mn in Q3 FY14. The EBIDTA margin increased by 280 bps year-on-year to 22.7% from 19.9% in Q3 FY 2014 primarily due to the fact that other expenses as a percentage decreased mainly due to higher revenues during the quarter. Other income includes interest/income from funds currently invested in fixed deposits.
The Q3 FY 2015 PAT increased by 23.8% year-on-year to Rs. 407.7 mn from Rs. 329.4 mn in Q3 FY 2014. The depreciation figure is higher due to the change in depreciation policy as per the New Companies Act 2013. The Q3 FY 2015 cash profit of the company increased by 30.4% to Rs. 480.9 mnyear-on-year from Rs. 368.9 mn in Q3 FY 2014.
With respect to understanding the impact of seasonality, it should be noted that a significant amount of revenue for the company is generated primarily during the third quarter of each fiscal year. Winter clothing products are typically higher in value and accordingly generate higher revenue, in comparison with the non-winter products, according to the company.
In terms of its business operations, MCFL has added 11 exclusive retail outlets with space area of 10,895 sq. ft. Two of the stores are with a space area of 1,300 sq. ft. and are on a COCO Basis, while 9 of its stores have a space area 9,585 sq. ft and are on FOFO Basis. The company has also recently started its online e-commerce sale through our own portalwww.montecarlo.in, and has also established tie-ups with several online portals. The E-retail portal and online business completely belongs to the company. On the product side, the company has also commenced its in-house production of socks, T-shirts and thermals.
About Monte Carlo Fashion Limited (MCFL)
Monte Carlo Fashions Ltd is a leading manufacturer and retailer of woollen products, including sweaters and cardigans, and cotton knitted garments such as T-shirts and track suits. It also supplies accessories including belts, ties, inner wears, thermal wears and socks. MCFL’s manufacturing facilities are primarily located in Ludhiana, Punjab, and are fully backed by capabilities in product development, design studio and an efficient sampling infrastructure. It follows an asset-light model for its cotton knitted garments and woven garments by primarily outsourcing the production of its knitted and woven products. The strength of its brand ‘MONTE CARLO’ has significantly contributed to the success of the business. ‘MONTE CARLO’ has been recognized as a ‘Superbrand’ for woollen hosiery garments since Fiscal 2003 by International Society for Superbrands.
The company is listed on the Bombay Stock Exchange (BSE) (BSE: 538836) and the National Stock Exchange (NSE) (NSE: MONTECARLO, ISIN: INE950M01013), with a market capitalisation of Rs 1,144 crore as on 4th February 2015