Go Fashion (India) Ltd

The key equity indices continued to trade near flat line with positive bias in the special trading session. The Nifty traded near the 22,500 level. Pharma shares rebounded after declining in the past trading session.

At 11:45 IST, the barometer index, the S&P BSE Sensex advanced 63.4 points or 0.09% to 73,984.77. The Nifty 50 index added 28.35 points or 0.13% to 22,494.45.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index gained 0.87%.

The market breadth was strong. On the BSE, 2,365 shares rose and 911 shares fell. A total of 142 shares were unchanged.

Buzzing index:

The Nifty Pharma index rose 0.76% % to 19,126.35. The index shed 0.06% in the past trading sessions.

Zydus Lifesciences (up 5%), J B Chemicals & Pharmaceuticals (up 3.56%), Aurobindo Pharma (up 3%), Glenmark Pharmaceuticals (up 2.76%) and Ipca Laboratories (up 2.54%) were the top gainers.

Among the other gainers were Mankind Pharma (up 1.74%), Granules India (up 1.51%), Dr Reddys Laboratories (up 0.86%), Sanofi India (up 0.77%) and Lupin (up 0.65%).

Stocks in spotlight:

Go Fashion (India) added 2.05% after the company said that it has entered into a new five-year franchise agreement with Apparel Group, a leader in global fashion and lifestyle retail.

Bandhan Bank rose 0.77%. The company ‘s net profit tumbled 93.24% to Rs 54.62 crore in Q4 FY24 as compared to Rs 808.29 crore recorded in Q4 FY23. However total income grew by 20.13% to Rs 5,883.46 crore in the fourth quarter of FY24 from Rs 4,897.39 crore posted in Q4 FY23.

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Apparel Group is a global fashion and lifestyle retail conglomerate residing at the crossroads of the modern economy – Dubai, United Arab Emirates. Today, Apparel Group caters to thousands of eager shoppers through its 2200+ retail stores and 85+ brands on all platforms. The Group has carved its strong presence in the GCC and expanded thriving gateways to market in India, South Africa, Singapore, Indonesia, Thailand, Malaysia, and Egypt. Additionally, clear strategies are in place to enter emerging markets such as Hungary and Philippines.

This partnership marks a significant step towards expanding the Go Colors brand throughout the GCC countries, starting with launching 13 new stores across the United Arab Emirates and Saudi Arabia.

The first phase of expansion will focus on establishing a strong presence in major cities across the UAE and Saudi Arabia, with further plans to extend throughout the GCC.

Gautam Saraogi, ED & CEO, Go Fashion (India), said: “We are thrilled about our partnership with the Apparel Group to launch stores in the GCC region, marking a pivotal move in our global expansion strategy.

The Apparel Group, a prominent fashion powerhouse on a global scale are the perfect partners for initiating our global expansion efforts. Their involvement promises to bring significant value, enhancing our venture in numerous ways.”

Go Fashion (India) is involved in the retailing of women's bottom wear products under its brand, Go Colors. The products are sold in the domestic market through its extensive pan India retail channel comprising 704 EBOs and around 2,024 large format stores.

The scrip rose 0.68% to currently trade at Rs 1020.70 on the BSE.

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Go Fashion (India) has entered into a Franchise Agreement with Apparel Group for Franchise rights for 'Go Colors' brand in UAE and Saudi Arabia for 5 years until 14 May 2029. The Franchise rights will be subject to the terms and conditions mentioned in the Franchise Agreement dated 14 May 2024.

This partnership marks a significant step towards expanding the Go Colors brand throughout the GCC countries, starting with launching 13 new stores across the United Arab Emirates and Saudi Arabia.

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Net profit of Go Fashion (India) declined 11.71% to Rs 13.05 crore in the quarter ended March 2024 as against Rs 14.78 crore during the previous quarter ended March 2023. Sales rose 15.32% to Rs 181.74 crore in the quarter ended March 2024 as against Rs 157.59 crore during the previous quarter ended March 2023.

For the full year,net profit declined 0.02% to Rs 82.78 crore in the year ended March 2024 as against Rs 82.80 crore during the previous year ended March 2023. Sales rose 14.66% to Rs 762.83 crore in the year ended March 2024 as against Rs 665.28 crore during the previous year ended March 2023.

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Go Fashion (India) will hold a meeting of the Board of Directors of the Company on 3 May 2024.

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Revenue from operations stood at Rs 202.13 crore in Q3 FY24, registering a growth of 15.16% year on year (YoY).

Profit before tax shed 1.31% to Rs 32.29 crore in Q3 FY24 as against Rs 32.71 crore recorded in Q3 FY23.

EBITDA stood at Rs 67.5 crore, registering the growth of 13% as compared with Rs 59.7 crore posted in corresponding quarter last year. EBITDA margin reduced to 33.4% in Q3 FY24 as against 34% in Q3 FY23.

Same store sales growth (SSSG) for exclusive brand outlet (EBOs) remained flat year on year for third quarter of FY24.

Total EBOs stood at 704 stores and cash & cash Equivalents stood at Rs 197 crore as on 31 December 2023.

Gautam Saraogi, CEO, Go Fashion (India), said, “Over the recent months, the retail sector has experienced a slowdown attributed to subdued consumer demand. Nevertheless, despite these external challenges, the company has been able to sustain its upward growth path.

During 9M FY24, our company achieved a growth of 15% YoY in revenues to Rs 581 crore. We have also witnessed a steady improvement in our gross margins which stood at 61.2%. Our PAT for 9M FY24 stood at Rs 70 crore, a growth of 3% YoY.

The company has achieved a strong positive cash flow from operations of Rs. 104 Crore of Pre IND-AS 116, a significant turnaround from the cashflows recorded during the same time last year. We strongly remain committed to operational efficiency and continue to see several improvements on the working capital front. We successfully have reduced our inventory by 29 days in December 2023 compared to March 2023 which is also indicative of the cashflows the company generated.

We aim to add 120 stores this year and aim to add over 150 stores in FY25. In our pursuit of enhancing the customer experience, we are actively investigating omnichannel strategies. These strategies harness technology to create a seamless connection between physical and online shopping experiences, thereby extending our outreach to consumers in different cities.”

Go Fashion (India) is involved in the retailing of women's bottom wear products under its brand, Go Colors. The products are sold in the domestic market through its extensive pan India retail channel comprising 704 EBOs and around 2,024 large format stores.

Shares of Go Fashion (India) rallied 2.74% to Rs 1,073.70 on the BSE.

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Net profit of Go Fashion (India) declined 3.74% to Rs 23.40 crore in the quarter ended December 2023 as against Rs 24.31 crore during the previous quarter ended December 2022. Sales rose 15.16% to Rs 202.13 crore in the quarter ended December 2023 as against Rs 175.52 crore during the previous quarter ended December 2022.

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Go Fashion (India) will hold a meeting of the Board of Directors of the Company on 6 February 2024.

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Net profit of Go Fashion (India) rose 4.00% to Rs 20.04 crore in the quarter ended September 2023 as against Rs 19.27 crore during the previous quarter ended September 2022. Sales rose 14.88% to Rs 188.85 crore in the quarter ended September 2023 as against Rs 164.39 crore during the previous quarter ended September 2022.

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Go Fashion (India) will hold a meeting of the Board of Directors of the Company on 31 October 2023.

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