Faze Three Limited — Important, 13-11-2024: Updates

**Financial Highlights:** In H1 FY 25, Faze Three reported consolidated revenue of approximately INR 305.2 Cr (up 13% YoY) and a profit after tax (PAT) of INR 14 Cr, down from INR 24.96 Cr in H1 FY 24. The EBITDA margin decreased to 12.48% due to one-time product development and setup costs. The company anticipates a conservative revenue growth of 15% for FY 25, supported by positive market trends.

**Strategic Initiatives and Growth Drivers:** The addition of a showroom in New York and expansion of existing product lines are expected to bolster revenue in H2 FY 25 and beyond. The company aims to leverage the "China Plus One" strategy, enhancing its competitiveness in the global market.

**Business Developments:** Significant investments exceeding INR 200 Cr have been made for expansion, new technologies, and product lines since FY 2019. Upcoming divestments of non-core assets could yield around INR 25 Cr.

**Market Position and Competitive Advantage:** Faze Three has robust relationships with major retailers in the USA, UK, and Europe, catering primarily to a strong demand for textiles sourced from India as global sourcing patterns shift.

**Investor Implications:** The company’s solid operational framework and strategic initiatives position it well for future growth, focusing on capacity expansion and improvement in profit margins as markets stabilize. Watch closely for developments in capacity additions and demand fulfillment.