PRNewswire
Jaipur (Rajasthan) [India], May 23: Nandani Creation Ltd (NCL), (NSE: JAIPURKURT), a leading Jaipur-based fashion player specializing in women's Indian wear products under the brands 'Jaipur Kurti', 'Amaiva' by Jaipur Kurti, and 'Desi Fusion', announced its financial results for the fourth quarter ended March 2024.
Key Financial Highlights for Q4 FY2024:
* Consolidated net profit surged by an impressive 149.09% to Rs 2.7 crore, compared to Rs 1.10 crore in the same quarter of the previous year.
* Sales witnessed substantial growth, rising by 84.29% to Rs 19.59 crore, compared to Rs 10.63 crore in the corresponding quarter of the previous year.
* Increase in ASP led by brand premiumization: The company has been proactively working to become an aspirational brand. Their efforts have been reflected in the rise of the Average Selling Price (ASP) by ~50% to Rs 1250 in FY24 against Rs 850 in FY23.
* Focus on better performing sales channels: Sales contribution from their own channels (Retail stores and www.jaipurkurti.com) has gradually increased to ~30% in FY24. This reduced reliance on other sales channels has provided the company with better negotiation opportunities. The company is capitalizing on this advantage by increasing their presence in high-performing marketplaces, which will enhance their ability to improve realizations and foster brand loyalty.
* Revival of the online sales channel: The Company has revitalized its focus on the online sales channel to cater to evolving customer needs. Recognizing the growing preference for both online and offline sales channels, it aims to reach a broader audience and provide convenience to customers, ensuring a robust online and offline presence in the competitive market.
* Omni-channel sales and distribution network: The company has continued investing in its proprietary online sales channel and expanded retail presence through the launch of new retail stores and the store-in-store (SIS) model to establish an omni-channel presence. Specific steps being undertaken include:
- Launching a mobile application on both the App Store and Play Store to expand reach in newer markets and optimize customer acquisition costs.
- Growing retail presence through a combination of company-owned and franchisee-operated Exclusive Brand Outlets (EBOs) across the country. Currently, their retail portfolio includes 13 operational stores, with multiple new stores set to launch in the coming months.
- Developing the Store in Store (SIS) model, partnering with 40+ stores in UP, Uttarakhand, Punjab, Jammu & Kashmir, and other regions. The company plans to add multiple geographies to the SIS model going forward.
Commenting on the results, Mr. Anuj Mundhra, Chairman & Managing Director of Nandani Creation Limited, said: "The fashion retail industry in India faced numerous challenges over the past year, including subdued customer demand and high inflation, which led to a slowdown in discretionary spending and affected the overall performance of the retail sector."
"Despite these headwinds, Nandani Creation Limited delivered a strong performance in the last quarter and closed the financial year on a strong foothold, setting a positive tone for the upcoming peak season, which we anticipate will be a catalyst for our business rejuvenation. In the face of the slowdown, we have proactively laid the groundwork for future growth. I firmly believe that we are now better positioned than ever to seize upcoming opportunities in the industry, thanks to our robust and expanding retail store portfolio and the increasing reach of our SIS distribution channel. I am confident that our strategically developed business plan will yield substantial rewards for all stakeholders and further enhance our brand's legacy."
Outlook:
* Started FY25 on a good note and have seen good traction at the start of Spring & Summer Season 24.
* The recently developed Store in Store (SIS) business model is expected to begin delivering results in the coming year and will significantly contribute to top-line growth and margin improvement.
* Expanding our retail presence into new regions (South and East) through Exclusive Brand Outlets (EBOs) will support the growth of our customer base and drive business.
* Fostering our presence in high-performing 3rd party marketplaces.
* Utilizing our mobile application to increase brand reach, reduce customer acquisition, and engagement costs.
About Nandani Creation Ltd.:
Nandani Creation, founded in 2012, is a Jaipur-based online-first fashion player offering women's Indian wear products under the brands 'JaipurKurti.com', 'Desi Fusion', and 'Amaiva'. The company has its own manufacturing setup in Jaipur with sales channels comprising third-party online platforms, its own website, and retail stores.
Our company currently operates 13 retail stores comprising Eight COCO retail stores (four in Jaipur, one in Bengaluru, one in Kota, one in Sri Ganganagar, one in Ghaziabad) and Five FOFO retail stores (one in Gurugram, one in Rajouri, Delhi, one in Ambikapur, one in Bhatinda, and one in Ahmedabad) and also retails through all major e-commerce platforms, its proprietary website https://www.jaipurkurti.com/, and through its mobile application available on both the App Store and Play Store.
Disclaimer: Certain statements in this press release may be forward-looking statements and/or based on management's current expectations and beliefs concerning future developments and their potential effects upon Nandani Creation. The forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. Nandani Creation does not intend, and is under no obligation, to update any forward-looking statement contained in this press release.
Follow Nandani Creation on Social Media:
* Facebook: www.facebook.com/jaipurkurti
* YouTube: www.youtube.com/@jaipurkurtiofficial
* Instagram: www.instagram.com/jaipurkurti/
* Pinterest: in.pinterest.com/jaipurkurti/
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