Q3 results on Feb 14th
Fingers crossed 
weāll have a happy Valentineās Day
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Ethos results announced. Couldnāt have got closer. Revenue of 375 crores posted by the company 
Disc: Invested & biased
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Summary of the investor PPT by chatgpt:
Summary of Ethos Limited Q3 & 9M FY25 Financial Performance Presentation
Financial Highlights
- Revenue Growth:
- Q3 FY25: ā¹369.9 crore (31.5% YoY increase)
- 9M FY25: ā¹940.3 crore (26.0% YoY increase)
- EBITDA Growth:
- Q3 FY25: ā¹62.8 crore (23.6% YoY increase)
- 9M FY25: ā¹160.7 crore (22.8% YoY increase)
- Profit After Tax (PAT):
- Q3 FY25: ā¹29.5 crore (15.6% YoY increase)
- 9M FY25: ā¹73.5 crore (18.0% YoY increase)
- EBITDA Margin:
- Q3 FY25: 16.7% (down from 17.7% in Q3 FY24)
- 9M FY25: 16.8% (down from 17.2% in 9M FY24)
- Average Selling Price: ā¹2,07,513 (+11.2% YoY)
- Luxury & High-Luxury Watch Share: Increased from 68% to 71% (YoY)
Business Expansion & Operational Highlights
- Store Expansion:
- 5 new stores opened in Q3 FY25 (total 13 new stores in 9M FY25).
- Total store count: 73 across 26 cities.
- Entered three new cities: Dehradun, Kochi, and Mangaluru.
- Opened a second duty-free store at Bengaluru Airport.
- Digitally Assisted Sales: Grew by 53.9% in Q3 FY25 and 32.9% in 9M FY25.
- New Brand Partnerships:
- Added 3 exclusive brands in Q3 FY25 (Christian van der Klaauw, Carl Suchy & Sƶhne, Zero Halliburton).
- Signed 6 exclusive partnerships since April 2024.
- Exclusive brand sales contributed 29.7% of revenue in Q3 FY25.
Challenges & Strategy
- Operational Challenges:
- Increased costs due to new store manpower and rent.
- Construction delays due to pollution-related restrictions in Delhi/NCR (52 days of restrictions affecting 75 days of operations).
- Future Strategy:
- Plan to open 6 more boutiques by FY25.
- Focus on talent acquisition and development.
- Targeting 10x revenue growth over the next decade.
Conclusion
Ethos Limited demonstrated strong revenue growth and continued expansion in Q3 & 9M FY25, with a focus on luxury brand partnerships, digital sales, and store openings. Despite some margin pressure from expansion costs, the company remains committed to its long-term growth strategy.
4 Likes
Hi,
Have been assessing this company since the past few weeks. PS: I had never seen this company. I had a certain doubts around the company?
Q1. What would be a good holdco discount for Ethos
Q2. If the manufacturing facilities for dials/ hands/ and belts are in India, are the parts then exported to Switzerland and then imported back as a finished product?
Q3. Have the EBITDA margins in standalone peaked out at 21%?
Q4. What was the other income of INR 201cr for standalone in FY24?
Q5. I do not see much room for growth through Ethos as itās a distribution model, does anyone else have a contrary opinion?
All are personal questions, just an enthusiast. Thanks
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regarding question 2,can you kindly give me the source from where you got to know that they manufacture the watch components in India? maybe it applies to the more budget brands like Seiko, Tissot etc but not sure about the higher tier brands!
what do you mean ? KDDL manufactures watch components right ?
yes KDDL does but what about Ethos?
This thread sometimes gets confusing, are we discussing about Ethos or KDDL
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Annual report states and so does this thread, that theyāre expanding hands facilities and bracelet facilities.
Theyāve nowhere mentioned what brands are catered by the facilities in India and which ones are catered by the Switzerland manufacturing facilities.
We are discussing about KDDL only.
[ETHOS] Promoter selling observed today, has it been dumped to public or to some other strong hands?
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The much awaited Favre Leuba watches are now available & there are almost 140 SKUs listed on the website. The starting price of 1.25 lakhs upwards & with many styles near 3.5-4.5 lakhs range, this could be a very good project in terms of management capability in having exclusive rights wrt retailing an iconic brand.
Q4 results & subsequent concall should throw some light on initial customer response towards this legacy brand whose revival Ethos has taken a bet on.
Disc: Invested & Biased in Ethos
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they had favre leuba from before as well right? for example this archive.org snapshot from 2016 shows they were already selling Favre from long back
or am i missing something? feel free to correct (Disc: Invested and Biased)
Favre Leuba is a Swiss watch brand which is one of the oldest ones. Back in 2016 or sometime before that Titan had acquired this brand & possibly at that time Ethos wouldāve also been retailing these watches.
Cut short, this brand has now been acquired by Silvercity which is a KDDL subsidiary & in which Ethos has minority stake.
Now KDDL has the exclusive rights to distribute FL watches throughout the world & Ethos has exclusive retailing rights in India.
SilverCity was formed to make strategic investments in iconic watch brands etc.
What this means for Ethos & which I might have missed or Iāll edit my previous post is that theyāll have an iconic Swiss brand to which theyāll have exclusive retailing & part of design language rights also for India.
Hope Iām able to answer the query. You may also refer to KDDL & Ethos concalls for more clarity
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thanks for the detailed explanation
in the future hopefully ethos can get similar rights for legendary brands like Cartier, Patek, AP etc..these 3 are very popular that ethos doesnt yet sell
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FL was sold under distress to Titan and Titan failed to turn it around so sold it to Ethos.
I donāt think the other brands you mentioned fall in this category.
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Ethos Q4 & FY 25 results declared. Revenue growth of 23.3% & PAT growth of 8.1% for Q4
Growth looks to be average in Q4 & store opening plan vs realisation has been weak for FY25. Against plan of 25 theyāve opened 14 stores with only 1 store in Q4. Itāll be interesting to see their store opening plan for FY26.
CPO business seems to have taken a backseat with only 32% odd growth Looks like the initiative couldnāt pick up as much as the promise being shown by management in terms of process & investments into it.
FY26 could be a strong start in terms of launches with 8 new stores scheduled to open in May 25 including 1 Messika store. But a lot of this seems to be spillover so need to see management commentary on total store additions plan.
Also ASP growth seems to have now reached steady state with ASPs reaching 2.04 lakhs
Disc: Invested & No recommendation
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management continue to highlight the lofty ambition of 10x revenues in 10 years which translates to around 25% cagr of revenue growth
Please Look at their yearly growth numbers. They delivered 25% revenue growth in FY25 vs FY24
One thing is that they dont even talk about Rimowa now. Also I looked at their Rimowa store rating on google. It was horrible 2.7 star rating and many customers are complaining about their services and quality. Its very bad because such high class people who buy Rimowa are very unlikely to make purchase from their store if they see the ratings and complaints.
Secondly, As I remember they said that Messika Store was going to open in January 2025
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exactly, as mentioned above by Samarth, there has indeed been noticeable spillovers and no doubt the stock fell today after the results were out. still i would like to hear the concall transcript when it is out
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ICICI MF continues to add more shares. As per their recent declaration, they have added 5.54,721 shares in the period between 7/12/22 and yesterday.
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