Credo Brands Marketing Ltd Q2 net profit drops 5 percent to Rs 26 crore

Credo Brands Marketing Limited, parent company of men’s casual wear brand Mufti reported a 5 percent decline in net profit to Rs 26 crore ($3 million) for the quarter ended September 30, as against Rs 28 crore in the year-ago quarter.

The company’s revenue for the quarter rose by 12 percent to Rs 186 crore, as against Rs 166 crore in the corresponding quarter of the previous fiscal year.

Commenting on the results, Kamal Khushlani, chairman managing director of Credo Brands in a statement said, “Our company demonstrated resilience and a steadfast commitment to driving growth despite facing a challenging external environment. Margins due to subdued demand were impacted in this period by several external factors, including a reduced number of wedding dates, unprecedented heavy rains in September, and generally subdued discretionary spending.”

“We are anticipating stronger demand in the coming months, driven by the festive season and upcoming marriages. We are also looking to improve our presence on digital platforms which will help us grew our direct-to-consumer business and for this purpose we have partnered with Meta and Google,” he added.

During the first half of the financial year, the company opened 17 new stores to take its total count to 427.  It plans to further expand its retail presence by adding 20-25 new stores in the second half of the year.