Monte Carlo Fashions Limited

Monte Carlo Fashions Limited reported consolidated revenue from operations of INR 206 crores for Q4 FY25. The quarter saw an EBITDA of INR 6 crores, resulting in a margin of 2.77%, and a net loss of INR 10 crores. This performance is attributed to the seasonal nature of the business, with Q4 typically experiencing higher discounts and returns. Management aims to improve Q4 profitability in the next financial year by implementing adequate provisioning to achieve a zero-loss quarter.

For the full financial year 2025, the company achieved a consolidated revenue of INR 1,100 crores, representing a growth of approximately 4% year-on-year. EBITDA for the year stood at INR 187 crores, a significant 31% increase year-on-year, with EBITDA margins reported at 16.9%. Net profit for FY25 was INR 81 crores, growing by 36% year-on-year, demonstrating strong overall financial health despite the challenging Q4.

The home textile segment remains a key growth driver, with 12 Exclusive Brand Outlets (EBOs) launched under the Cloak & Decker brand. The company plans to further scale this segment with stores ranging from 500 to 1,000 square feet. The youth-focused brand 'Rock it' also continues its steady growth. Overall, Monte Carlo intends to open 45-50 EBOs and 10-15 Clock & Decker stores across India, with a continued focus on Western and Southern regions.

Monte Carlo's online channel is gaining traction, particularly through its own website. To meet evolving customer expectations, the company has partnered with quick commerce platforms such as Blinkit and Swiggy, enabling delivery within 30 minutes. These partnerships are currently being piloted in the Delhi NCR for pre-winter and winter clothing, with discussions for home furnishing. The company has also collaborated with Salesforce to enhance operational efficiency and customer experience.

Management is confident in achieving double-digit revenue growth for the next financial year, supported by a strong order book from recent trade shows. They anticipate an improvement in EBITDA margins, expecting to touch above 20% including other income, and around 20% excluding other income. The steady-state tax rate is projected to be 25.168% after the one-time^📎 impact of long-term capital gain structure changes in FY25.

The Board of Directors recommended a final dividend of INR 20 per equity share (200% on a face value of INR 10) for FY25. The company's actual finance cost is INR 34 crores, which is effectively offset by INR 34 crores in other income derived from investments of approximately INR 290 crores in government bonds and mutual funds. Efforts are underway to reduce debtor days by 5-10 days by tying up with distributors for advance payments, improving working capital efficiency.

Monte Carlo is actively working to balance its product portfolio, with summer wear sales now contributing 30-35% of total garment sales, a significant increase from 4-5% a decade ago. The company aims to further increase this contribution to a 45-55% ratio within the next 1-2 years. This strategy helps reduce the company's reliance on winter wear and mitigates seasonal fluctuations in performance.

The company is exploring international markets by exporting Monte Carlo-branded goods to countries like the US and Canada through online platforms. Recent participation in the International Trade Fair in Dubai and a tie-up with the Landmark Group in the UAE for 8,000-10,000 pieces signify initial steps in global expansion. A more detailed strategy for global expansion is expected to be provided by the end of the current financial year.