More than the giants in the stock market today, small-medium shares were seen in full form. The Nifty Smallcap index reached a record high, while the Midcap index also saw a quarter percent gain. But the mode of consolidation continued in Nifty, Sensex and slight selling was also seen in Nifty Bank. On the other hand, there was a 20 percent increase in intraday trading in Metro Brands share. The stock has shown strong growth today due to the company’s excellent performance in the quarter ended December 31, 2021. Today in intraday, the stock jumped 19.99 percent on the BSE and reached the upper circuit of Rs 609.45.
Speaking to CNBC-Awaaz today, Metro Brands MD Farah Malik and CFO Kushal Parekh explained the reason behind the company’s excellent results. Along with this, both of them told from what level the company benefited from Corona Unlock and what is the consumer’s sentiment and what is the market. He spoke on all the issues like whether Omkron can affect the business going forward and how many new stores the company will open in 2022. Here are the key excerpts from the conversation with the company management-
Excellent results presented by the company, who helped in opening / unlocking
Speaking about the results, the company’s MD Farah Malik said that the opening of the post covid economy gave a boost to the revenue. The effect of Corona has not been seen in this quarter. Omicron showed an impact at the end of the quarter. At the same time, the company got the benefit of marriage and festive season and apart from this the company also got the benefit of having sufficient stock of goods.
Tata Steel, JSW Steel again saw a rise, these steel stocks climbed after the EU imposed duty on imports from China, Russia, America
Consumer sentiment and pent up demand
Farah Malik said that the company has shown good growth and growth was also driven by pent-up demand. The company got the benefit of wedding and festive season. The company has contributed well to e-commerce sales with 9.2%. Apart from this, we have got opportunities for growth due to expansion. He also clarified that the inclusion of the Fit Flop brand has also helped in boosting the company’s growth.
What was the effect of increasing Omicron in late December and early January?
Metro Brand MD Farah Malik said that it is true that Omicron has had an impact on the business. Due to this new variant Omicron, the number of customers at the store has come down which is bound to impact the business. However, we plan to balance the impact on revenue by reducing costs.
How many stores opened this quarter, how much increased revenue
Kushal Parekh, CFO, Metro Brands, said the company’s third quarter revenue growth stood at 59%. Therefore, if seen, better revenue growth was seen than pre-covid. At the same time, the company opened 39 new stores in the third quarter and entered into an exclusive deal with FitFlop, which appeared to be beneficial.
How much profit will the company get from the FITFLOP deal?
Speaking on the FITFLOP deal, Kushal Parekh said that FitFlop is a global brand and a big name. The products of this company have presence in 60 countries. There is a good demand for FitFlop products and we are selling well in it. Apart from this, distribution will also be done by the company along with the sale of FitFlop. On the other hand, Farah Malik said that the company sees a lot of growth potential for FitFlop in India.
CNBC-AWAAZ EXCLUSIVE: Auto stocks are in top gear today, Nifty auto index at 2-month high, know the reason for buying in auto stocks
Company’s financial position and outlook
Kushal Parekh said margins were higher due to lower share of discounted sales. Improvement in in-house sales reflected an increase in margins. Apart from this, cost-cutting measures also benefited and the company has shown the best performance in the third quarter.
What are the expectations from BUDGET 2022
Farah Malik said that considering the market conditions, a good budget can be presented by the government to give a boost to the industry. However, if we talk about our expectations, then we are expecting a relief in the rates of GST. We believe that the rates of GST are higher in this industry as compared to clothing.
.