Low consumer spending may affect Monte Carlo’s winter business

Monte Carlo, best known for its woolens has a two to three per cent share of India’s winter wear market and 40 to 50 per cent share of the organised market for woolens. For the quarter ended September 2016, the company earned a standalone net profit of Rs 13.40 crores on revenues of Rs 124 crores. It derives about 55 per cent of its revenues during the October to December quarter. But financial year ’17 is likely to be hit due to the demonetization drive and related cash shortages currently being faced by people.

GST could raise tax incidence from approximately five per cent to 12 per cent. The company has diversified into cotton (47 per cent of sales), kids’ clothing (five per cent) and home furnishings (10 per cent) — these segments include winter-themed apparel categories — to reduce dependence on the seasonal woolen wear segment.

Monte Carlo Fashions was launched in 1984 by the Nahar group. The brand offers woolen knitted garments, T-shirts, shirts, linen shirts, denim, trousers, dresses, shorts, tunics, sportswear for men, women and teens. It also has accessories including belts, ties, inner wear, thermal wear and socks. Monte Carlo is present in 200 exclusive brand outlets and 1300 multi brand outlets.