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Key Points

Cantabil Retail reported a significant decrease in net profit for the fourth quarter of FY25, with a 34.54% drop from the previous quarter. Nevertheless, the company achieved substantial growth for the entire fiscal year, with net profit increasing by 20.31% and revenue from operations up by 17.61%. Chairman and Managing Director Vijay Bansal attributed the success to robust volume growth and a customer-centric strategy. Despite the quarterly profit dip, Cantabil remains focused on expanding its market presence and enhancing brand strength, driven by a recent increase in store openings.

Key Points: Cantabil Retail Q4 Profit Drops 34% Amid Annual Growth

  • Cantabil's Q4 net profit declines by over 34%
  • FY25 shows 20% annual profit increase
  • Revenue from operations grows 17.6% annually
  • Store expansion included 66 new outlets
2 min read

Apparel firm Cantabil's Q4 net profit falls over 34 pc, revenue drops

Cantabil Retail posts a 34% drop in Q4 profits, while FY25 shows strong annual growth.

"“The robust volume growth of over 15% underscores the robustness of our brand.” - Vijay Bansal"

Mumbai, May 16

Apparel manufacturer Cantabil Retail India Ltd on Friday reported a sharp decline in its net profit and revenue for the fourth quarter (Q4) of FY25.

The company’s net profit for Q4 stood at Rs 22.51 crore, down from Rs 34.38 crore in the previous quarter, marking a drop of approximately 34.54 per cent, according to its stock exchange filing.

The company also saw a slight decline in revenue from operations during the quarter.

Revenue slipped to Rs 219.02 crore in Q4, compared to Rs 222.91 crore in Q3, showing a decrease of about 1.75 per cent.

Profit before tax (PBT) also took a hit, falling nearly 33.78 per cent quarter-on-quarter (QoQ) to Rs 29.92 crore.

However, on an annual basis, Cantabil delivered a strong performance. For the full financial year FY25, the company’s net profit rose by 20.31 per cent to Rs 74.86 crore from Rs 62.22 crore in FY24.

Revenue from operations increased by 17.61 per cent to Rs 729.51 crore, compared to Rs 620.28 crore in the previous fiscal.

The company's Chairman and Managing Director, Vijay Bansal, expressed satisfaction with the company’s full-year results despite a challenging retail environment.

He noted that robust volume growth of over 15 per cent and a customer-centric strategy helped the company reach record revenue and profit levels in FY25.

“We are pleased to report a historical full year performance for FY25. The robust volume growth of over 15 per cent during the year underscores the robustness of our brand,” Bansal mentioned.

He added that signs of a demand recovery and the prediction of an above-normal monsoon are likely to support improved consumer sentiment going forward.

Bansal also said that Cantabil remains focused on strengthening its brand, expanding its market reach, and enhancing customer convenience.

During FY25, the company accelerated its store expansion strategy by opening 66 new outlets on a net basis.

It launched its first store in 2000 in New Delhi and has since expand presence in the fashion apparel sector.

- IANS

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Reader Comments

R
Rahul K.
The quarterly drop is concerning but annual growth looks solid. Cantabil has been my go-to brand for formal wear - hope they maintain quality while expanding so fast. 66 new stores in a year is impressive but could strain operations. 🤞
P
Priya M.
Not surprised by Q4 results - the wedding season was weaker this year and many people cut discretionary spending. Their winter collection was also not as trendy as competitors. But 17% annual revenue growth shows they're doing something right!
A
Arjun S.
As a shareholder, I'm worried about the QoQ decline but the management seems confident. Hope their monsoon prediction comes true - rural demand could be a game changer. More stores in tier 2/3 cities might help balance urban slowdowns.
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Neha T.
Their clothes are good but becoming overpriced. Many local brands now offer similar quality at 20-30% lower prices. Cantabil needs to watch this - Indian middle class is very price sensitive, especially in current economy.
S
Sanjay P.
The 15% volume growth shows brand strength. But with retail, you can't relax - one bad season and customers move on. They should invest more in digital - their online shopping experience needs improvement compared to Myntra/Ajio.
M
Meena R.
I appreciate that they're expanding physical stores when others are going digital-only. In smaller towns, people still prefer touching fabrics before buying. Hope they maintain their tailoring quality - that's their USP! ✂️

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