I went through multiple con-call transcripts of SHIL and HSIL (prior to demerger) but limited information was available about the sourcing for the Furniture Retail business. All the company-maintained EVOK stores have been closed except for 2 stores in Delhi and Faridabad.
The sourcing for Building products and Consumer Products is clear
see attached:
I agree with you on the addressable size of the furniture market and more than 90% of it is unorganized. The key to success is here is an extremely efficient supply chain.
Owing to the pandemic and store closures, there’s a slump in Furniture sales. That’s one of the main reasons behind losses in the Retail segment. However, management said that the Retail segment had a positive PBT for 2 quarters Q3, Q4 of FY21 where we have seen pent up demand from the previous quarters as most parts of the country were into lockdown for months. So is it fair to assume that it is the operating leverage playing out that has resulted in positive PBT for 2 quarters?.
