Metro Brands slides as Q1 PAT decline 3% YoY to Rs 92 cr

Revenue from operations decline marginally to Rs 563.21 crore in the June quarter from Rs 564.41 crore recorded in the corresponding quarter previous year.

Profit before tax in Q1 FY25 was at Rs 122.97 crore, down 6.6% as against Rs 131.66 crore reported in the same period a year ago.

EBITDA declined 4.8% year on year to Rs 180 crore in the quarter ended 30 June 2024. EBITDA margin reduced to 32% as compared to 33.6% registered in Q1 FY24.

Ecommerce sales (including omni-channel) for the quarter stood at Rs 58 crore, with 10.4% contribution to the total revenue.

During Q1 FY25, Metro Brands maintained a stable gross profit margin of 60% and PAT margin of 16% demonstrating resilience and efficient operational control. This was despite significantly lower wedding dates this quarter compared to Q1 of last year, loss of business days to support the elections and subdued footfall due to intense heatwave which resulted in muted Y-o-Y growth.

With 15 net store additions during this quarter, the company is on track to open 100 stores this year and expects to open the first Foot Locker store in the third quarter of fiscal year 2025, it added.

Nissan Joseph, CEO of Metro Brands, stated, Considering the double-digit Y-o-Y growth in Q1 over the past two years, along with the industry seasonal headwinds, the recent quarter was indeed challenging. Our ability to maintain stable profitability and drive operational efficiency during such a period is commendable. Equally, we are excited about adding talent in our team and the upcoming opportunities including the launch of Foot Locker and the signing up of New Era, establishing our increasing foothold in the sports and athleisure category.

Metro Brands operate metro, mochi and walkway branded MBOs and Crocs branded EBOs. Company and our its Metmill also operate shop in shops (SIS) in major departmental stores across India. Firm also distribute products of third party brands through MetMill and retail products through franchisees.