Cantabil Retail India Limited — Important, 12-11-2024: General Updates

**Financial Highlights:** Cantabil Retail India Limited reported Q2 FY25 revenue of ₹151.2 Cr, reflecting a 12% YoY increase, while H1 FY25 revenue was ₹279.1 Cr, up 13% YoY. Gross margins for Q2 and H1 stood at 56.1% and 60.8%, respectively. EBITDA margins were 22.8% for Q2 and 26.5% for H1, with PAT margins at 4.3% and 6.4%. Volume growth showed a robust 13.54% YoY in Q2 and 15.52% in H1.

**Strategic Initiatives and Growth Drivers:** The company added 12 stores in Q2 FY25 and a total of 23 in H1 FY25, maintaining a total of 556 stores nationwide. Plans to increase store count to 700 over the next two years, particularly in Tier 2 and Tier 3 cities, demonstrate a focus on market expansion. An emphasis on improving online sales is evident, targeting a contribution rise to 8%-10% in two years.

**Business Developments:** Cantabil continues to enhance its manufacturing capabilities with recent investments in technology and new machinery. They also launched various initiatives to strengthen the supply chain and reduce operational costs.

**Market Position and Competitive Advantage:** The company maintains a strong industry presence with leading return ratios, including a ROCE of 36.7% and ROE of 22.7% for FY24.

**Investor Implications:** With a solid growth trajectory and strategic expansion plans, Cantabil presents a positive outlook for investors, driven by its performance and ongoing initiatives to enhance operational efficiencies and market reach.