METROBRAND - Metro Brands Limited Share Price

Here are the major questions and answers from the Q&A section of the earnings transcript:

1. Question from Gaurav Jogani: "What has really helped you in this [growth], and how confident are you of sustaining these trends going forward?"

   Answer by Nissan Joseph: "Our third quarter's double-digit growth is a result of various initiatives implemented across our banners. The business trajectory is improving, and we are optimistic about sustaining this trend. We continuously monitor market conditions but see no immediate factors that would dampen our growth."

2. Question from Gaurav Jogani: "Any guidance on store openings, can this be the new normal in terms of store openings?"

   Answer by Nissan Joseph: "We opened 6 Foot Locker and 3 MetroActiv stores recently, affirming our commitment to invest in new stores. We aren't constrained by capital and plan to open stores that are profitable, focusing on opportunities rather than a fixed number of openings."

3. Question from Gaurav Jogani: "Can you explain the trend regarding other income and finance costs this quarter?"

   Answer by Kaushal Parekh: "The decline in other income is due to a payout of a special dividend last year affecting our treasury. Despite a lower investable surplus, total treasury income remains above last year. The finance cost is generally stable, with a shift in store openings affecting quarterly impacts."

4. Question from Devanshu Bansal: "What has driven the growth improvement from 11% in Q2 to 15% in Q3?"

   Answer by Nissan Joseph: "The growth reflects improved comp-store sales despite no uptick in revenue per square foot, as new stores have not yet matched the sales of mature stores. Our existing stores performed well, compensating for any expected impacts."

5. Question from Devanshu Bansal: "How are we improving our portfolio's salience in the sports and athleisure space?"

   Answer by Nissan Joseph: "We continue to see growth in both performance and fashion markets, and our new retail concepts like Foot Locker and MetroActiv cater to this demand. We've invested in design and marketing to strengthen our retail presence."

6. Question from Devanshu Bansal: "Are the recent higher store closures indicative of strategic corrections?"

   Answer by Kaushal Parekh: "The closures are standard cleanup and not unusual, as we typically close 2-3% of stores annually. Our overall store base remains stable, and we don't expect significant changes in the future."

7. Question from Rahul Agarwal: "What are the trends in inventory health and its expected movement?"

   Answer by Kaushal Parekh: "As of December, inventory is slightly up due to seasonal factors, but nothing abnormal. We maintain a healthy inventory level that aligns with historical trends."

8. Question from Sameer Gupta: "What would gross sales growth be if you include GST adjustments?"

   Answer by Kaushal Parekh: "Considering GST benefits, gross sales would be about 3% higher. However, net sales remain unchanged since discounting was offered in line with the lower GST rates."

9. Question from Ankit Kedia: "How do you account for the Shoe Depot format, and is it just for leftover inventory?"

   Answer by Nissan Joseph: "Shoe Depot is a retail outlet concept that allows us to clear stock year-round. It does not rely solely on leftover inventory but offers flexibility across our brands to liquidate products efficiently."

10. Question from Akhil Parekh: "Why are BIS constraints significant for Foot Locker and FILA but not for other brands?"

    Answer by Nissan Joseph: "BIS impacts our high-end products, which are largely imported. Other brands primarily source locally, thus avoiding this issue. While BIS affects product availability, we're committed to our growth despite these challenges."