Monte Carlo Q2 revenues rise 8.7 percent

Ludhiana-based branded (wool and cotton) apparel manufacturer, Monte Carlo Fashions (MCFL) has announced its second quarter and first half FY16 results reported an 8.7 percent increase in revenues and went up to Rs 1,366.2 million on the back of overall growth across all segments. Gross margins were improved by 452 bps to 52.7 percent.

EBIDTA for the quarter increased by 45.1 percent to Rs 266.3 million and EBIDTA margin increased by 489 bps to 19.5 percent from 14.6 percent in the same quarter, last year owing to robust growth in volumes and better product mix. Further, marketing and advertising expenses decreased by 27.9 percent to Rs 25.1 million as compared to Rs 34.8 million in the second quarter of FY15.

Commenting on the balance sheet, inventory figures of September are not comparable to March as the company manufactures woollen apparels for the upcoming winter season; therefore inventory peaks in the month of September and receivables peak in the December quarter.

MCFL added four exclusive retail outlets during the period under review. Total number of EBOs as on September 30, 2015 was 218 and the company aims to carry on with its planned expansion on a pan-India basis.