Highlights from the Quarter (Q1 FY24) :

During Q1 FY24, the top line went up by 11.6% yoy to Rs.2,184.1 cr; on a sequential basis, the top line was up 1.4%, despite the cyclone towards the end of the quarter. Home textiles (90% of the sales) reported a growth of 10% yoy in revenue to Rs.2,037.6 cr, while flooring revenue reported revenue of Rs.225.1 cr, a growth of 33% yoy. The company has increased its stores in India to ~13,200 in the current quarter and aims to increase it to 50,000 stores by FY26. Domestic sales grew by 13% yoy.

EBITDA margin improved by 130 bps qoq to 14.2% in Q1 FY24. Cotton prices and container costs have corrected to the pre-pandemic levels. The company has guided a 15% EBITDA margin for FY24E, with flooring and home textile expected to improve on the margins.

According to the management, the demand outlook for the near term is good and therefore the company should witness good H1 FY24, while on 2H FY24, it is cautiously optimistic due to the uncertain economic environment. It has guided a revenue growth of 10% for FY24, with improving capacity utilization across the segments.

Net debt went up to Rs.1,815 cr on account of higher inventory due to the cyclone and high built-up on account of the upcoming festive season. It is confident that net debt would be below Rs.1,000 cr by FY24.

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