Credo Brands Marketing Ltd's Q3FY25 Quarterly Results

Result Summary

• Credo Brands Marketing Ltd reported a 15.6% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 3.8%.
• Its expenses for the quarter were down by 12.1% QoQ and up 1.6% YoY.
• The net profit decreased 30.8% QoQ and increased 17.4% YoY.
• The earnings per share (EPS) of Credo Brands Marketing Ltd stood at 2.8 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Credo Brands Marketing Ltd is a company known for its presence in the apparel and fashion industry, primarily focusing on marketing and distributing clothing products. The company's flagship brand is "Mufti," which is recognized for its casual wear collections. Over the years, Credo Brands has established a strong retail presence across various regions, aligning its focus on delivering trendy and comfortable apparel. Despite existing market competition, the company has maintained a robust brand image with a dedicated customer base. No specific recent developments or changes in its core business model are available at this time.

Revenue

In the third quarter of fiscal year 2025 (Q3FY25), Credo Brands Marketing Ltd reported a total income of ₹156.99 crores. This represents a decrease of 15.6% compared to the previous quarter (Q2FY25), where the total income was ₹186.09 crores. However, when assessing the year-over-year performance, the total income increased by 3.8% compared to Q3FY24's figures of ₹151.19 crores. These figures highlight a quarterly decline but a steady annual growth in revenue. The revenue trends may reflect the competitive dynamics within the apparel sector as well as seasonal variations impacting sales.

Profitability

The company's profitability metrics indicate a notable decline in quarterly performance but an improvement year-over-year. The profit before tax in Q3FY25 was ₹24.45 crores, down by 30.9% from Q2FY25's ₹35.36 crores. Comparatively, this is an increase of 17.9% from the ₹20.73 crores recorded in Q3FY24. The tax expenses followed a similar pattern, decreasing by 31.0% on a quarterly basis but increasing annually by 19.5%. Consequently, the profit after tax for Q3FY25 was ₹18.31 crores, a decrease of 30.8% from the preceding quarter but an improvement of 17.4% from the same quarter in the previous year. The earnings per share (EPS) also reflected these trends, decreasing from ₹4.10 in Q2FY25 to ₹2.80 in Q3FY25, while increasing from ₹2.40 in Q3FY24, marking a year-over-year increase of 16.7%.

Operating Metrics

The total expenses for Credo Brands Marketing Ltd in Q3FY25 amounted to ₹132.54 crores, showing a quarterly decrease of 12.1% from Q2FY25's ₹150.73 crores, but an increase of 1.6% compared to Q3FY24's ₹130.47 crores. These expense trends indicate a reduction in quarterly operational spending. The company’s operational efficiency can be partly inferred from these financial metrics, reflecting changes in cost management and possibly adjustments in operational strategies. The quarterly and annual changes in these metrics offer insights into the company’s operational dynamics and strategic decisions impacting cost structures.