Monte Carlo optimistic about reaching growth target in FY16

Fashion brand Monte Carlo’s third quarter was a little subdued with EBITDA margins down at 21.9 per cent compared to 23 per cent as reported in the same fiscal last year. However, the profit after tax was up by 9 per cent at Rs 44.5 crores as against Rs 40.8 crores. Even the total income was up 12 per cent at Rs 351.5 crores as against Rs 313 crores year-on-year.

Despite the tepid third quarter, the company is confident of achieving the FY16 growth target of 10-15 per cent in addition to maintaining the EBITDA margins. Sandeep Jain, Executive Director, Monte Carlo, believes that given the slowdown in the economy, the company has done decent in the third quarter.

A delayed winter in the North is the reason behind the slip in the margins. The company had to offer discounts earlier than usual and to top it there wasn’t enough sales of winterwear. But, Jain is confident of making up for the losses. He is optimistic of achieving the required growth. He says that they have a guidance of 10-15 per cent three quarters ago. So, he says, they are confident of meeting that guidance. ‘We will be able to maintain our EBITDA margins’.