#SALES #GROWTH
In FY25, the revenue from operations was flat on a YoY basis and stood at โน1,386 cr. The sale of companyโs customers were ~โน1,893 cr witnessing an increase of 2% compared to FY24. The same store sale growth was negative 4% as against FY24. The company's performance was weak due to intensified competition and large number of stores opening over the past two to three years. In FY24, the revenue from operations grew by 0.9%. It was impacted due to lower number of weddings, high base effect and muted consumer discretionary demand. In October 2023, the sales was impacted due to inauspicious shraddh period. The sale of companyโs customers were ~โน1,853 cr witnessing a de-growth of 0.5% compared to FY23. The same store sale growth declined by 10% YoY. The company has announced its Vivaham collection, Panchakacham and veshti sets in South India.
In FY25, the revenue from operations was flat on a YoY basis and stood at โน1,386 cr. The sale of companyโs customers were ~โน1,893 cr witnessing an increase of 2% compared to FY24. The same store sale growth was negative 4% as against FY24. The company's performance was weak due to intensified competition and large number of stores opening over the past two to three years. In FY24, the revenue from operations grew by 0.9%. It was impacted due to lower number of weddings, high base effect and muted consumer discretionary demand. In October 2023, the sales was impacted due to inauspicious shraddh period. The sale of companyโs customers were ~โน1,853 cr witnessing a de-growth of 0.5% compared to FY23. The same store sale growth declined by 10% YoY. The company has announced its Vivaham collection, Panchakacham and veshti sets in South India.
๐2๐2๐ฏ1
#EBITDA #GROWTH
In FY25, EBITDA witnessed a de-growth of ~18% and stood at โน643 cr. It was impacted due to increase in other expenses. In cases where same-store sales growth has been modest but rent escalation requests have been raised, the company is actively renegotiating contracts to avoid any increase in rental costs. In FY24, EBITDA stood at โน658 cr and saw a decline of 2% due to lower sales on a YoY basis. It was mainly due to muted consumer demand, however, the average selling price (ASP) was strong.
In FY25, EBITDA witnessed a de-growth of ~18% and stood at โน643 cr. It was impacted due to increase in other expenses. In cases where same-store sales growth has been modest but rent escalation requests have been raised, the company is actively renegotiating contracts to avoid any increase in rental costs. In FY24, EBITDA stood at โน658 cr and saw a decline of 2% due to lower sales on a YoY basis. It was mainly due to muted consumer demand, however, the average selling price (ASP) was strong.
๐ฅ2๐ฏ2๐ซก1
#ROCE
In FY25, ROCE witnessed a decline as compared to FY24. This decline was on the back of lower profitability. In FY24, ROCE witnessed a decrease to 40% as compared to FY23.
In FY25, ROCE witnessed a decline as compared to FY24. This decline was on the back of lower profitability. In FY24, ROCE witnessed a decrease to 40% as compared to FY23.
โก2๐ฏ2๐ฅ1
#SECTORIAL #POTENTIAL
โข The size of the retail apparel industry in India as on FY24 stood at ~โน5,74,000 cr out of which the ethnic wear comprises of ~30%. The total of Indian wedding and celebration wear about ~57% of the total ethnic business. (Source : Crisil Report) โข The ethnic wear industry is expected grow strongly in the future, on account of the increasing trend of multi-day weddings, wider acceptance of traditional outfits during festival celebrations and the emergence of brands in the Indian wedding and celebration wear market. This industry has been highly unorganized. โข Womenโs ethnic wear is the largest segment of the overall market as it has found acceptance in both daily wear and office-wear categories, apart from the Indian wedding and celebration wear category. It includes lehengas, kurtis, sarees and salwar kameez. Menโs ethnic wear is the second-largest category and has a share of ~10% of the overall ethnic market. โข The celebration wear industry in India is competitive, with several regional brands and unorganized retailers present in local markets across the country. The Indian celebration wear industry has also been a highly unorganized market. โข The penetration into the unorganized markets with increasing retail footprint will lead to better performance in this segment. โข Transition to indo-western and fusion wear, shift from tailored ethnic wear to ready-to-wear apparels, increasing trends of wearing ethnic in festivals and migration towards branded ethnic wear would be the key drivers of this industry.
โข The size of the retail apparel industry in India as on FY24 stood at ~โน5,74,000 cr out of which the ethnic wear comprises of ~30%. The total of Indian wedding and celebration wear about ~57% of the total ethnic business. (Source : Crisil Report) โข The ethnic wear industry is expected grow strongly in the future, on account of the increasing trend of multi-day weddings, wider acceptance of traditional outfits during festival celebrations and the emergence of brands in the Indian wedding and celebration wear market. This industry has been highly unorganized. โข Womenโs ethnic wear is the largest segment of the overall market as it has found acceptance in both daily wear and office-wear categories, apart from the Indian wedding and celebration wear category. It includes lehengas, kurtis, sarees and salwar kameez. Menโs ethnic wear is the second-largest category and has a share of ~10% of the overall ethnic market. โข The celebration wear industry in India is competitive, with several regional brands and unorganized retailers present in local markets across the country. The Indian celebration wear industry has also been a highly unorganized market. โข The penetration into the unorganized markets with increasing retail footprint will lead to better performance in this segment. โข Transition to indo-western and fusion wear, shift from tailored ethnic wear to ready-to-wear apparels, increasing trends of wearing ethnic in festivals and migration towards branded ethnic wear would be the key drivers of this industry.
๐3๐ฅ1๐ฏ1
#COMPANY #OUTLOOK
โข In Q2 FY25, the company launched its new brand Diwas (menโs wear) which witnessed good traction. It is designed for the young generation and is available across leading marketplaces. It is available on the companyโs own D2C (direct to customer) website and MBOs. It is a new approach taken towards the brand Manthan. The company will be focusing on scaling up Diwas instead of Manthan for next 2-3 years. โข In FY25, the company will be taking orders for both Manthan and Diwas. โข Diwas brand is operating in โน1,000-โน2,000 per kurta price point and the same for Manyavar is โน2,000-โน6,000. โข Looking ahead, growth shall be boosted by relevant inventory & designs, robust store network, multi-dimensional marketing initiatives and strong back-end infrastructure. โข In Q4 FY25, the company rolled out 1 EBO of Twamev and Mohey, each. โข They have also launched perfumes under Manyavar brand (Essence by Manyavar) in October 2024 and witnessed decent traction. These were available in the top 50-60 stores of the company.
โข In Q2 FY25, the company launched its new brand Diwas (menโs wear) which witnessed good traction. It is designed for the young generation and is available across leading marketplaces. It is available on the companyโs own D2C (direct to customer) website and MBOs. It is a new approach taken towards the brand Manthan. The company will be focusing on scaling up Diwas instead of Manthan for next 2-3 years. โข In FY25, the company will be taking orders for both Manthan and Diwas. โข Diwas brand is operating in โน1,000-โน2,000 per kurta price point and the same for Manyavar is โน2,000-โน6,000. โข Looking ahead, growth shall be boosted by relevant inventory & designs, robust store network, multi-dimensional marketing initiatives and strong back-end infrastructure. โข In Q4 FY25, the company rolled out 1 EBO of Twamev and Mohey, each. โข They have also launched perfumes under Manyavar brand (Essence by Manyavar) in October 2024 and witnessed decent traction. These were available in the top 50-60 stores of the company.
๐3โค1๐1๐ฏ1
Vedant Fashions (Manyavar) 350-400
Expected level 500
Support 290
Expected level 500
Support 290
๐ฅ6๐ฏ3โค1
KPIT Technologies Limited Company Details Report
In 2018, KPIT Technologies Limited took a major strategic decision to be a company that would be focused on automotive-embedded software rather than being a general software company. KPIT provides embedded software for the Automobile and Mobility Industry. The company is a leading software integrator covering prototype development, actual software development, validation and testing. With the changing structure of the mobility industry and the transformation towards software-defined vehicles, KPIT stands in a unique position to meet the needs of OEMs (original equipment manufacturer) and Tier 1 players. Further, to strengthen their capabilities in areas of software integration, and semiconductor technologies, KPIT acquired Path Partner Technology in FY22. In FY23, KPIT acquired UK-based SOMIT Solutions for ~โน75 cr and acquisition of four of the Technica Group companies for โน640 cr. Also, they signed an agreement to acquire remaining 75% stake in Future Mobility Solution GmbH (FMS) to build and augment their expertise in AD/ADAS. The 75% stake was acquired in Q1 FY24 which contributed $1.7 million to the revenue in the same period. The company services are categorized into Feature Development & Integration, Architecture Consulting & Middleware, and Cloudbased connected services. In feature development & integration, KPIT provides scalable solutions for Electric and Conventional powertrains, Autonomous Driving (AD) and Advanced Driver Assistance Systems (ADAS), Vehicle Engineering and Design. The companyโs expertise and experience in architecture and middleware development and consulting is renowned and expected to be a key driver of revenue and growth. In addition, KPIT has a complete suite of cloud-based solutions that cater to enhancing Intelligent Cockpits, Connected Vehicles, Cloud and Analytics, and Diagnostics. The customers are located at US/Europe/APAC region. To enable the company to serve their specific needs the company has set up legal entities in the respective geographies. During Q3 FY24, the company acquired ~13% shareholding in N-Dream AG, a cloud-based game aggregation platform in vehicles based in Switzerland. It paid โฌ2.7 million in primary investment and โฌ0.3 million in secondary investment. The company is one of the early-movers in the in-car gaming space. In Q1 FY25, additional 13% stake was invested.
In 2018, KPIT Technologies Limited took a major strategic decision to be a company that would be focused on automotive-embedded software rather than being a general software company. KPIT provides embedded software for the Automobile and Mobility Industry. The company is a leading software integrator covering prototype development, actual software development, validation and testing. With the changing structure of the mobility industry and the transformation towards software-defined vehicles, KPIT stands in a unique position to meet the needs of OEMs (original equipment manufacturer) and Tier 1 players. Further, to strengthen their capabilities in areas of software integration, and semiconductor technologies, KPIT acquired Path Partner Technology in FY22. In FY23, KPIT acquired UK-based SOMIT Solutions for ~โน75 cr and acquisition of four of the Technica Group companies for โน640 cr. Also, they signed an agreement to acquire remaining 75% stake in Future Mobility Solution GmbH (FMS) to build and augment their expertise in AD/ADAS. The 75% stake was acquired in Q1 FY24 which contributed $1.7 million to the revenue in the same period. The company services are categorized into Feature Development & Integration, Architecture Consulting & Middleware, and Cloudbased connected services. In feature development & integration, KPIT provides scalable solutions for Electric and Conventional powertrains, Autonomous Driving (AD) and Advanced Driver Assistance Systems (ADAS), Vehicle Engineering and Design. The companyโs expertise and experience in architecture and middleware development and consulting is renowned and expected to be a key driver of revenue and growth. In addition, KPIT has a complete suite of cloud-based solutions that cater to enhancing Intelligent Cockpits, Connected Vehicles, Cloud and Analytics, and Diagnostics. The customers are located at US/Europe/APAC region. To enable the company to serve their specific needs the company has set up legal entities in the respective geographies. During Q3 FY24, the company acquired ~13% shareholding in N-Dream AG, a cloud-based game aggregation platform in vehicles based in Switzerland. It paid โฌ2.7 million in primary investment and โฌ0.3 million in secondary investment. The company is one of the early-movers in the in-car gaming space. In Q1 FY25, additional 13% stake was invested.
๐ฅ3๐2โค1
#SALES #GROWTH
In FY25, the revenue stood at โน5,842 cr, a growth of 20%. In cc terms, revenue was up by 21%. The growth was driven by middleware, powertrain, passenger cars & geographical growth uptick in Asia. Furthermore, growth in its strategic client accounts (Top 25) aided healthy results. TCV (new) was $925 mn, up by 18%. TCV includes the new partnership with Mercedez Benz. Revenue in FY24 was โน4,872 cr, up by 45%. Growth was broad-based across verticals, especially in the middleware, autonomous & connected vehicle domain. TCV for FY24 stood at $796 mn, down by ~20%. Deals were higher in FY23 due to $250 mn large deal with Honda. Geography wise revenue has depicted strong broad-based growth, especially led by Asia. Overall, higher efficiency, focus on strategic client accounts and improved net rate realisation led to a strong performance. In cc terms, revenue grew by 39%, v/s the management guidance of 37%. Organic growth was 32% out of the 39% total.
In FY25, the revenue stood at โน5,842 cr, a growth of 20%. In cc terms, revenue was up by 21%. The growth was driven by middleware, powertrain, passenger cars & geographical growth uptick in Asia. Furthermore, growth in its strategic client accounts (Top 25) aided healthy results. TCV (new) was $925 mn, up by 18%. TCV includes the new partnership with Mercedez Benz. Revenue in FY24 was โน4,872 cr, up by 45%. Growth was broad-based across verticals, especially in the middleware, autonomous & connected vehicle domain. TCV for FY24 stood at $796 mn, down by ~20%. Deals were higher in FY23 due to $250 mn large deal with Honda. Geography wise revenue has depicted strong broad-based growth, especially led by Asia. Overall, higher efficiency, focus on strategic client accounts and improved net rate realisation led to a strong performance. In cc terms, revenue grew by 39%, v/s the management guidance of 37%. Organic growth was 32% out of the 39% total.
โก2๐1๐ฅ1
#EBITDA #GROWTH
EBITDA in FY25 was โน1,230 cr, up by 24%. Employee costs and other expenses were higher by 19% and 21%, respectively during the same period. Consistent revenue growth have aided uptick in profitability despite continued investments for growth. Additionally, higher fixed price contracts along with increased offshoring aided profitability uptick. EBITDA in FY24 stood at โน991 cr, a rise of 57% YoY. Employee expenses had risen by 44% due to higher wages along with employee additions while other expenses increased by 33%, majorly due to increased investments to scale up growth. However, higher revenue coupled with improved efficiency helped boost overall earnings.
EBITDA in FY25 was โน1,230 cr, up by 24%. Employee costs and other expenses were higher by 19% and 21%, respectively during the same period. Consistent revenue growth have aided uptick in profitability despite continued investments for growth. Additionally, higher fixed price contracts along with increased offshoring aided profitability uptick. EBITDA in FY24 stood at โน991 cr, a rise of 57% YoY. Employee expenses had risen by 44% due to higher wages along with employee additions while other expenses increased by 33%, majorly due to increased investments to scale up growth. However, higher revenue coupled with improved efficiency helped boost overall earnings.
๐ซก2๐1๐ฅ1
#PAT #GROWTH
In FY25, the PAT stood at โน837 cr, higher by ~40%. Finance costs were lower by 23% as the company continued to reduce debt of its subsidiaries while depreciation was higher by ~15%. Other income was higher by ~178% due to one-offs amounting to โน85 cr, mentioned during H1 FY25 & forex gain leading to increased profits. PAT in FY24 was โน599 cr, a rise of 56%. Finance costs witnessed a rise of 70% majorly due to expedition of debt payments. Depreciation costs were higher by 31% due to acquisition effects. Other income was also higher by ~51%. Forex gain stood at โน16.7 cr as compared to โน10 cr in FY23.
In FY25, the PAT stood at โน837 cr, higher by ~40%. Finance costs were lower by 23% as the company continued to reduce debt of its subsidiaries while depreciation was higher by ~15%. Other income was higher by ~178% due to one-offs amounting to โน85 cr, mentioned during H1 FY25 & forex gain leading to increased profits. PAT in FY24 was โน599 cr, a rise of 56%. Finance costs witnessed a rise of 70% majorly due to expedition of debt payments. Depreciation costs were higher by 31% due to acquisition effects. Other income was also higher by ~51%. Forex gain stood at โน16.7 cr as compared to โน10 cr in FY23.
โก1๐1๐ฅ1๐ซก1
#EBITDA #MARGIN
In FY25, EBITDA margin stood at 21.1%. Despite ESOP costs, quarterly promotions and employee additions, margins expanded due to fixed cost leverage and productivity improvement along with operational efficiencies. The margin during FY24 was 20.4% as compared to 18.8% in FY23. It improved despite employee additions & certain impact of wage hikes done, majorly due to enhanced productivity and a better realized rate along with rupee appreciation. The margins were only marginally higher from the guidance of ~20%.
In FY25, EBITDA margin stood at 21.1%. Despite ESOP costs, quarterly promotions and employee additions, margins expanded due to fixed cost leverage and productivity improvement along with operational efficiencies. The margin during FY24 was 20.4% as compared to 18.8% in FY23. It improved despite employee additions & certain impact of wage hikes done, majorly due to enhanced productivity and a better realized rate along with rupee appreciation. The margins were only marginally higher from the guidance of ~20%.
โก3โค1๐1
#PAT #MARGIN
In FY25, PAT margin improved to 14.3%. The healthy growth in net profit was aided by improvement in operating margins and higher other income on account of exceptional gains. Adjusting for one-time gains, margins would have been 13.1% for FY25, a growth of ~80 bps. In FY24, the margin was 12.3% as compared to 11.4% in FY23. The margins expanded majorly due to higher revenue growth & higher other income.
In FY25, PAT margin improved to 14.3%. The healthy growth in net profit was aided by improvement in operating margins and higher other income on account of exceptional gains. Adjusting for one-time gains, margins would have been 13.1% for FY25, a growth of ~80 bps. In FY24, the margin was 12.3% as compared to 11.4% in FY23. The margins expanded majorly due to higher revenue growth & higher other income.
๐2โก1๐ฅ1