Why Did Apparel Firm Cantabil Experience a 34% Drop in Q4 Net Profit and Revenue?
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Synopsis
Cantabil Retail India Ltd faced a substantial downturn in its fourth quarter, with a 34% drop in net profit. Despite challenges, the company reported solid annual growth. Discover how Cantabil navigated the retail landscape and what the future holds for this fashion apparel leader.
Key Takeaways
- Q4 net profit down by 34.54%
- Revenue decreased by 1.75%
- Annual net profit rose by 20.31%
- 66 new outlets opened during FY25
- Focus on customer-centric strategies
Mumbai, May 16 (NationPress) Apparel manufacturer Cantabil Retail India Ltd has announced a notable decline in its net profit and revenue for the fourth quarter (Q4) of FY25. The company's net profit for Q4 was reported at Rs 22.51 crore, a significant drop from Rs 34.38 crore in the previous quarter, equating to a decrease of approximately 34.54 percent, as per its filing with the stock exchange.
Additionally, the company experienced a modest decline in revenue from operations during the quarter. Revenue fell to Rs 219.02 crore in Q4, down from Rs 222.91 crore in Q3, reflecting a decrease of around 1.75 percent.
Profit before tax (PBT) also faced a downturn, decreasing nearly 33.78 percent quarter-on-quarter (QoQ) to Rs 29.92 crore.
However, on an annual basis, Cantabil demonstrated robust performance. For the entire financial year FY25, the company’s net profit surged by 20.31 percent to Rs 74.86 crore from Rs 62.22 crore in FY24.
Revenue from operations grew by 17.61 percent to Rs 729.51 crore, compared to Rs 620.28 crore in the preceding fiscal year.
The company’s Chairman and Managing Director, Vijay Bansal, expressed satisfaction with the full-year results despite the challenging retail landscape. He highlighted that strong volume growth of over 15 percent and a focus on customer-centric strategies enabled the company to achieve record revenue and profit levels in FY25.
“We are thrilled to announce a historic full-year performance for FY25. The robust volume growth exceeding 15 percent during the year exemplifies the strength of our brand,” Bansal stated.
He also mentioned that indications of a demand recovery and the forecast of an above-normal monsoon are expected to bolster consumer sentiment going forward.
Bansal reaffirmed that Cantabil is committed to fortifying its brand, expanding its market presence, and enhancing customer convenience.
During FY25, the company accelerated its store expansion strategy by inaugurating 66 new outlets on a net basis. Cantabil launched its first store in 2000 in New Delhi and has since broadened its footprint in the fashion apparel sector.
Point of View
It is crucial to provide a balanced view of Cantabil's recent financial performance. While the decline in net profit and revenue in Q4 raises concerns, the impressive annual growth underscores the company's resilience in a competitive market. It reflects a broader trend in the retail sector that demands attention and analysis.
NationPress
16/06/2025
Frequently Asked Questions
What caused Cantabil's Q4 net profit decline?
Cantabil's Q4 net profit fell due to various factors, including a challenging retail environment and slight declines in revenue, resulting in a 34% decrease compared to the previous quarter.
How did Cantabil perform over the entire financial year FY25?
In FY25, Cantabil reported a net profit increase of 20.31%, rising to Rs 74.86 crore, driven by strong volume growth and effective customer-centric strategies.
What is Cantabil's strategy moving forward?
Cantabil aims to strengthen its brand, expand market reach, and enhance customer convenience, with a focus on store expansion and adapting to market demands.
