*Q4FY23 First Cut- Robust revenue growth*
Ethos reported a *robust revenue growth of 30.8% YoY (-10% QoQ) to Rs.2,076mn* (MCNL Est- Rs.1709mn). Total billing for the quarter grew by 30.8% YoY.
*Gross margins for the quarter declined by 84bps YoY to 29.4% (-167bps QoQ)*, while *OPM came in at 12.3%*, a decline of 103bps YoY (-330bps QoQ). EBITDA for the quarter stood at Rs.255mn (MNCL Est.232mn) (+21% YoY, -29% QoQ)
*PAT for the quarter stood at Rs.133mn (MNCL Est-106mn), a growth of 69% YoY (-36% QoQ)*
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The company continues to *demonstrate robust growth, firmly enhancing our conviction that Ethos is at the forefront of driving a luxury watch culture in India. Its portfolio of brands and an assortment of products*, best-in-class customer services, globally competitive prices, and the trust that the Ethos name evokes are all coming together to create an environment of sustained growth and profitability. *Additionally, The Swiss data reiterates our belief in the country's growing demand for luxury watches and their potential*. *The stock is up 58% since our initiation coverage report, We continue to hold a positive view on the stock with a Target Price of Rs.1400*
We will revisit our estimate post the company's earning call scheduled for Monday (15th May at 11 am)
BY MONARCH NETWORTH CAPITAL LIMITED
