Go Fashion (India) Ltd, the owner of women’s apparel brand Go Colors, reported a 4% year-on-year (YoY) rise in net profit for Q3 FY25 at ₹24.32 crore, compared to ₹23.40 crore in Q3 FY24. Revenue from operations grew by 6% YoY to ₹214.73 crore, compared to ₹202.11 crore in the corresponding quarter last year.
Key Financial Highlights
•Total Income: ₹220.57 crore, up from ₹206.31 crore in Q3 FY24.
•Cost of Materials Consumed: Increased to ₹48.71 crore in Q3 FY25, compared to ₹38.41 crore in the same period last year.
•Total Expenses: ₹183.13 crore, a 5.1% rise from ₹174.02 crore in Q3 FY24.
•Employee Benefit Expenses: ₹40.90 crore, compared to ₹32.44 crore YoY.
•Depreciation and Amortization Costs: ₹31.74 crore, up from ₹29.58 crore in Q3 FY24.
Profit Margins
Profit before tax for the quarter stood at ₹32.26 crore, marginally lower than ₹32.29 crore in Q3 FY24. However, the company managed to maintain stable growth in net profit despite increased costs.
Earnings Per Share
The company reported basic and diluted earnings per share (EPS) of ₹4.50 for Q3 FY25, compared to ₹4.33 in the same quarter last year.
Outlook
The moderate growth in revenue and profitability reflects steady demand for Go Colors apparel. However, rising costs, particularly for materials and employee expenses, are areas to watch in the coming quarters. With continued expansion and demand in the women’s apparel segment, Go Fashion is well-positioned for sustained growth.
Operational Highlights
Go Fashion has made strides in improving operational efficiency and scaling its business. The average selling price (ASP) for the nine months ending December 2024 was ₹769, reflecting a strategic shift towards premium offerings. The sales mix highlights the dominance of exclusive brand outlets (EBOs), contributing 71.9% of sales, followed by large format stores (23.5%) and online channels (2.9%).
Same-store sales growth (SSSG) for EBOs remained flat at 0.4%, while same cluster sales growth (SCSG) was reported at 7% for the nine-month period. Full price sales accounted for 95.1% during this period, underscoring the brand’s strong pricing power and market acceptance.
Expansion and Inventory Management
The company added 61 new EBOs on a net basis during the nine-month period, bringing its total store count to 775 as of December 31, 2024. Go Fashion plans to add 80–90 new stores by the end of FY25 and targets 120–150 store additions annually in the coming years.
Inventory days stood at 99 as of December 2024, and the company expects this to stabilize between 90–95 days for the full year, reflecting better working capital efficiency. Working capital days stood at 130 days, compared to 124 days as of March 2024.
Cash Flow and Returns
The company’s cash flow from operations (post IND-AS 116) for the nine-month period was ₹150.1 crore. Pre IND-AS 116 cash flow stood at ₹57.1 crore. Return on capital employed (RoCE) was 20.3%, while return on equity (RoE) stood at 15.8%.
Management Commentary
Gautam Saraogi, CEO of Go Fashion, commented, “We have maintained our growth trajectory despite a challenging demand environment. Our revenue grew by 11% to ₹643 crore, and EBITDA by 9% to ₹206 crore for the nine months. Our evolving product mix, highlighted by an average selling price of ₹769, underscores the market’s acceptance of our value-added offerings and reflects our transition into a comprehensive bottom-wear brand.”
Saraogi also highlighted inventory control and working capital efficiency as key focus areas, adding that the company aims to convert more than 50% of its EBITDA into operating cash flows. He emphasized that the company is on track to achieve its FY25 goals and expand its store network further.
Outlook
With consistent growth in revenue and profitability, a strategic focus on premiumization, and expansion into new markets, Go Fashion is well-positioned to strengthen its foothold in the bottom-wear market. The company’s robust operational and financial performance underscores its potential for sustained growth in the coming quarters.
