Financial Performance
• Date of Call: August 7, 2024
• Q1 FY '25 Results:
• Revenue growth: 5%
• EBITDA increase: 9%
• Profit after tax increase: 14%
• Market Challenges: Inflation and weather conditions impacted performance.
• Same-store sales growth: 3%
• New Store Openings: 5 new stores, total of 430.
• Future Plans:
• Open 25-30 new stores in FY '25.
• Enhance digital presence.
Growth Aspirations
• Target Growth: Mid-teens revenue growth.
• Profitability Focus: Cost efficiency and inventory management.
• CFO Insights:
• Decrease in working capital days.
• Strong financial metrics: Net debt to equity ratio of negative 0.02x.
Branding and Margins
• Branding Expenditures: 5% of revenue to enhance digital presence and D2C sales.
• Market Volatility: Challenges in precise growth forecasts.
• Gross Margins: Expected to remain stable.
Online Sales and Inventory Management
• Margin Comparison: Online sales margins lower than MBOs and EBOs due to discounts.
• D2C Expansion: Focus on full-price online purchases.
• Working Capital Reduction: Target reduction of about five days.
Growth Strategy and Competition
• Store Expansion: Adjusted target from 35-40 stores to 20-25 based on market conditions.
• Market Positioning: Room for growth despite competition from new D2C brands.
• Long-term Goals: Aim to double in four to five years, focusing on volume and value.
Operational Insights
• Inventory Tracking: Robust system for daily inventory tracking at EBO level.
• Receivables Management: Current levels influenced by necessary stock and franchisee deposits.
• Return Rates: Current provision for returns at 25%, up from 22% last year.
Conclusion
• Final Remarks: Kamal Khushlani thanked participants and encouraged further inquiries through Investor Relations.

Submission Details
• Date of submission: June 4, 2024
• Transcript of conference call regarding financial results for the quarter and year ending March 31, 2024
• Call held on: May 31, 2024
• Key participants:
• Mr. Kamal Khushlani (Chairman and Managing Director)
• Mr. Rasik Mittal (Chief Financial Officer)
• Transcript available on the company's website
Company Performance Overview
• Significant brand reinvention in 2019 targeting contemporary Indian men
• Operates in 599 cities with over 1,800 retail touchpoints, including 425 exclusive brand outlets (EBOs)
• FY '24 revenue growth: 14% to INR 567 crores
• Q4 revenues flat at INR 133 crores due to delayed winter and increased product returns
• Plans for FY '25: branding investment, store network expansion, and enhanced e-commerce presence targeting mid-teens revenue growth
Financial Metrics
• Slight decline in EBITDA
• Increase in working capital days due to higher inventory returns
• Final dividend recommended: INR 0.50 per share
Key Inquiries and Responses
• Provisions Increase:
• Kunal Shah inquired about provisions rising from 14% to 25%
• Mittal explained it was due to higher customer returns in a subdued market
• Revenue and EBITDA Guidance:
• Khushlani targets mid-teens growth focusing on same-store growth
• MBO Channel Degrowth:
• Clarified by Mittal as influenced by higher provisions, not actual sales decline
• Revenue Growth per Store:
• Attributed to brand reinvention and effective positioning in the casual wear market
Online Sales and Expenditures
• Online sales increased from 5% to 11% of total sales
• Other expenditures rose from INR 95.6 crores to INR 134 crores due to advertising and one-time anniversary expenses
• Operating margins fell from 33% to 28%, with potential recovery to around 30% expected
Inventory and Accounting Practices
• Emphasis on effective inventory management and control
• Discussion on COFO model retaining inventory risk and brand presentation control
• Khushlani noted infrequent brand revamps, with the last significant one boosting sales
Capital Expenditures and Future Outlook
• Capex for new store openings and renovations expected to be around INR 20-25 crores
• No current year capex for warehousing; focus on maintenance and new store additions
• Management expressed commitment to improving profitability and managing inventory levels effectively
Conclusion
• Management thanked participants and invited further inquiries through Investor Relations.

Submission Details
• Date of Submission: February 20, 2024
• Conference Call Date: February 15, 2024
• Participants:
• Kamal Khushlani (Chairman and Managing Director)
• Rasik Mittal (Chief Financial Officer)
• Transcript Availability: On the company's website
• Signed by: Sanjay Kumar Mutha (Company Secretary and Compliance Officer)
Company Overview
• Brand: Mufti, specializing in men's casual wear for over 25 years.
• Current Operations:
• 1,818 touchpoints across India.
• Focus on exclusive brand outlets (EBOs).
• Growth Plans:
• Expand store network and online presence.
• Target revenue growth of 18-20% for FY24.
Financial Performance Highlights
• Q3 FY'24 Results:
• Revenue: INR 150 crores (15% YoY growth).
• Same-store sales growth (SSSG): 1.4%.
• Gross profit: INR 90 crores (19% increase).
• EBITDA: INR 42.5 crores (1% decline).
• Nine-Month Performance:
• Revenue: INR 434 crores (19% growth).
• Profit After Tax (PAT): INR 52.1 crores (7% decline YoY).
Strategic Focus
• Technological Advancements: Commitment to innovation for sustainable growth.
• Advertising Expenses: Increased spending to enhance brand recognition, impacting margins.
• Future Projections:
• FY'24 revenue growth of 18-20%.
• EBITDA margin target: 28-30%.
Inventory and Online Sales
• Inventory Management:
• Advance goods receipt to optimize cash flow.
• Some inventory for upcoming seasons.
• Online Revenue:
• Limited contribution (INR 2.5 crores last year).
• Focus on liquidating old stock rather than high-margin sales.
Growth Strategy and Challenges
• Multi-Brand Outlets (MBOs):
• Dynamic growth strategy with a target of 3%-5% SSSG.
• Plans to add 50-60 stores over the next two years.
• Store Economics:
• Average store size: 750-800 sq. ft.
• Average revenue per store: 90 lakhs.
• Operational expenses: 24%-25% for company-owned stores.
Market Conditions and Future Outlook
• Sales Performance:
• Current consumer sentiment is muted.
• Confidence in maintaining EBITDA margins despite challenges.
• Advertising Strategy:
• Maintain ad spending at 4%-5% of revenue for the next few years.
Conclusion
• Investor Engagement: Kamal Khushlani expressed gratitude to investors and encouraged future interactions.