Also, can we do some channel check for FILA to find out how they are doing in the market ? Things like growth rate, customer choice availability, price in comparison to other brands (recently they took a price hike), brand positioning etc…
Also the data may be easier to get from online portals like Jabong ? Any one having contacts in such portals ?
It will be great if we can meet the management, and find out things like future growth drivers, funding for it etc…
Lot of information is already available in public domain about the nature of the business though.
Recently I checked out some retail stores like Lifestyle & Reliance Footwear…FILA had good presence in both of them and I asked them as to how the co was doing, the response was positive.
I do agree that they are not the preferred brand as of now, but things are improving for sure. And with the support of parent brand and troubles of Reebok, may be they can capture a good market share.
Mainly through franchisee model, I think I had read somewhere. The management does not intend to spend a lot on the retail stores and the only way to grow in that way is to go the franchisee route.
I think it is anopportune time to look at the company .
The company has a decent brand,…sales growth and with the huge winding down of reebok of india ( have personally seen lot of stores closing from tier-2 and tier-3 cities )
Has a nice presence on the online websites such as jabong , myntra and flipkart . The avg shoe price costs about from 1000 rs to 2700 rs ( hence if the management gets it act together good sustainable margins can be achived ),…also has decent presence at malls and shoes stores.
The current market cap of 100 crores offers a decent margin of safety to enter as the growth from such low base (refering to the market cap) could be handsome.
Need more digging on the marketing and business strategy of the company although they are claiming for expansion plans for 100 stores by fy 14( how will it be funded and utilised)
Sorry, results don’t look all that fab! Q3/Fy-13 Results out…
Total Income DOWN 42.6% to 48.78 Cr from 57.84 Cr.
EBIDTA DOWN 34% to 3.59 Cr from 5.44 Cr.
Net Profit DOWN 53% to 1.4 Cr from 1.6 Cr.
EBIDTA margin is 7.4% v/s 9.6% (SQ-12) and 6.4% (DQ-11)
NET Profit margin is 2.9% v/s 5.1% (SQ-12) and 3.5% (DQ-11)
Total Raw material costs as a %ge to Income is 59.1% v/s 60.4% (SQ-12) and 68.4% (DQ-11)
Employee costs to Income is 12.9% v/s 9.7% (SQ-12) and 6.6% (DQ-11)
Other expenses to Income is 20.6% v/s 20.3% (SQ-12) and 18.6% (DQ-11)
Financial costs to EBIT is 48.9% v/s 22.1% (SQ-12) and 17.6% (DQ-11)
Tax Rate 16.7% v/s 27% (SQ-12) and 30.5% (DQ-11)
SEGMENTS:
DOMESTIC: Sales DOWN 38.5%, PBIT Down 5%, margin 6% v/s 8.3% (SQ-12) and 3.9% (DQ-11)
INTERNATIONAL: Sales Down 68%, PBIT down 87%, margin 5.7% v/s 8.2% (SQ-12) and 14.3% (DQ-11)
9M/Fy-13 v/s 9M/Fy-12:
Total Income Down 11.3% to 162.84 Cr from 183.66 Cr (Fy/11-12: 244.71 Cr)
EBIDTA Down 13% to 12.67 Cr from 14.58 Cr (Fy/11-12: 19.01 Cr)
Net Profit down 26% to 5.92 Cr from 7.98 Cr (Fy/11-12: 9.19 Cr)
