Monte Carlo Fashions saw sales climb by approximately 12 per cent in the third quarter of FY23 and approximately 19 per cent in the nine months of FY23, according to the company’s regulatory filing on Wednesday.
The company’s quarterly sales have been the strongest ever because of strong brand equity with customers, the newest fashion items, and exceptional quality, as well as strong end-of-season sales and a promising festive season throughout India.
The company maintained its previously disclosed annual growth estimate of 20 per cent to 25 per cent, it said.
“As most of its net revenue from franchises, EBOs and MBOs are sold on pre-order or outright, inventory risk is minimised, consequently helping MCFL remain insulated from hazard sales in the branded apparel business,” the company said.
More qualitative growth has been supported by the company’s strategy of limiting sales returns.
“Despite the higher raw material prices, the company has strategically tackled the volatility by optimising the product mix, passing on the costs to consumers and rationalising overheads,” it said.
“The company has consistently improved its product mix based on early fashion trends and attractive price points. This has been garnering fair market share by the company,” it added.
The Company continued with its strategy of strengthening its retail presence in India by opening 13 new EBOs during Q3FY23, out of which 7 EBOs were opened in the Northern Region, 2 EBOs in the Central Region and 4 EBOs opened in the Eastern Region. With this, the total number of EBOs has reached approximately 347 across 20 states and four union territories, the statement said.
The company maintains its yearly growth guidance of opening 40-45 new EBOs, it informed earlier.
The company is working to install SAP S/4HANA solution – Fashion and Vertical Business by the first week of February 2023. The company is focusing on creating reliable procedures and improving client experience.
“This is an intelligent ERP providing real-time insights in all areas of the business and predictive consumer trend insights. This will enhance our flexibility and agility to deliver end-to-end customer experiences and at the same time achieve significant bottom-line cost savings. Monte Carlo maintains its first mover’s streak to implement such kinds of digital solutions in the industry,” the company said.
The company is present on most of the main online marketplaces, including Ajio, Amazon, Flipkart, FirstCry, Myntra, and Kapsons, in addition to its own website and through MBOs and distributors, NCS.
After the firm reported good revenues in the December quarter as a result of rising demand across all of its verticals, shares of Monte Carlo Fashions finished 4.18 per cent higher at Rs 699.25 per piece on the BSE on Wednesday.