Stanley Lifestyles Sees 34.5% YoY PAT Decline in Q2 FY25 Earnings

Stanley Lifestyles announced its consolidated financial results for the quarter ended September 30, 2024. 

Q2 FY25 Financial Highlights

In Q2 FY25, the company’s revenue from operations stood at ₹1,030 million, reflecting a 6.4% decline compared to ₹1,101 million in Q2 FY24. Quarter-on-quarter, revenue rose by 2.3% from ₹1,007 million in Q1 FY25. 

The company’s EBITDA for Q2 FY25 was ₹185 million, down 12.3% from ₹211 million in Q2 FY24. EBITDA also declined sequentially by 8.0% from ₹201 million in Q1 FY25. The EBITDA margin for Q2 FY25 was 18.0%, slightly lower than 19.2% in Q2 FY24 and down from 20.0% in Q1 FY25.

The Profit After Tax (PAT) for Q2 FY25 was ₹57 million, reflecting a 34.5% decline from ₹87 million in Q2 FY24. PAT showed a sequential increase of 50.0% compared to ₹38 million in Q1 FY25. 

H1 FY25 Financial Highlights

For the first half of FY25 (H1 FY25), revenue totalled ₹2,037 million, showing a slight 1.1% decrease from ₹2,060 million in H1 FY24. 

However, for H1 FY25, EBITDA reached ₹386 million, representing a 4.0% increase compared to ₹371 million in H1 FY24. For H1 FY25, the EBITDA margin stood at 18.9%. In H1 FY25, PAT totalled ₹95 million, down 22.1% from ₹122 million in H1 FY24.

Commenting on the performance, the Managing Director, Mr Sunil Suresh, said, “During the first half of FY2025, Stanley Lifestyles reported Revenue from Operations of ₹2,037 million, despite our B to C business growing by 3.0% year on year, our overall sales declined by 1.1% compared to H1 of the previous year.” 

He added that this was due to a combination of factors including reduced store footfall due to unusually heavy rainfalls in their major retail markets. Change in one of their business verticals from credit to cash and carry and reduced pull from their B to B customers. Although Indian luxury residential property sales continue to grow exponentially, the ongoing delays in property handovers by builders continue to postpone the timing of actual furniture purchases.

On November 14, 2024, Stanley Lifestyles share price opened at ₹438.80, touching the day’s high at ₹452.65, as of 9:55 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.