Cello World Limited surges with record-breaking Q1 FY25 results—Find out the numbers

Cello World Limited, a key player in India‘s consumerware sector, has unveiled its unaudited financial results for the quarter ended 30 June 2024. The company, which operates in various segments including consumer houseware, writing instruments, stationery, moulded furniture, and consumer glassware, has demonstrated robust growth in several key financial metrics.

Revenue and Profit Performance

For Q1 FY25, Cello World Limited achieved a revenue of ₹500.7 crore, marking a 6.1% increase from ₹471.8 crore in Q1 FY24. The company’s gross profit reached ₹269.4 crore, up by 8.6% from ₹248.1 crore year-on-year. This improvement in gross profit translated to a gross profit margin of 53.8%, an increase from the previous year’s 52.6%. The company’s EBITDA for the quarter was ₹134.9 crore, reflecting a 6.0% rise compared to ₹127.3 crore in Q1 FY24, maintaining an EBITDA margin of 27.0%.

The profit before tax stood at ₹120.3 crore, a 4.7% increase from ₹114.9 crore, while the profit after tax attributable to owners was ₹82.6 crore, up by 6.7% from ₹77.4 crore in the same period last year. The PAT margin slightly improved to 16.5% from 16.4% in Q1 FY24.

Segment-Wise Revenue and Profit Breakdown

Cello World’s revenue breakdown for Q1 FY25 reveals that the consumer ware segment contributed ₹327.1 crore, up 5.3% from ₹310.5 crore in Q1 FY24. The writing instruments segment remained relatively stable with a minor decrease of 0.2%, recording ₹83.2 crore compared to ₹83.4 crore. The moulded furniture and allied products segment saw significant growth, with revenue rising 16.0% to ₹90.4 crore from ₹77.9 crore.

In terms of gross profit, the consumer ware segment generated ₹179.9 crore, a 9.3% increase from ₹164.6 crore. The writing instruments segment saw a slight increase to ₹49.3 crore from ₹48.7 crore, while the moulded furniture and allied products segment’s gross profit grew by 18.4% to ₹41.2 crore from ₹34.8 crore.

Capital Raise and Market Position

Cello World Limited raised additional capital of ₹737 crore through a Qualified Institutional Placement (QIP), resulting in a dilution of the promoters’ holding to 75%, in line with the minimum public shareholding norms. This strategic move aims to strengthen the company’s financial position and support its growth initiatives.

Chairman’s Commentary

Pradeep Rathod, Chairman & Managing Director of Cello World Limited, highlighted the company’s performance, noting that the growth aligns with industry trends. Rathod attributed the increase in gross margin to a favourable shift in revenue mix and the company’s focus on value-added premium products. Despite facing demand headwinds and the impact of elections, Cello World’s growth was primarily driven by its consumer ware and furniture segments. The chairman also mentioned an increased advertising spend due to a back-to-school campaign, viewing it as a vital investment in enhancing the company’s brand recognition.

Looking forward, Rathod remains optimistic about FY25, expecting a growth rate of 15%–17% driven by anticipated improvements in demand in the latter half of the year.

Company Overview

Cello World Limited operates 14 manufacturing facilities across six locations in India, with a diverse range of in-house manufacturing capabilities. The company boasts a strong distribution network, with over 3,300 distributors and 126,000 retailers nationwide. Known for its established brand and strong market positions, Cello World continues to focus on innovation, expanding its consumer base, and scaling up its distribution and manufacturing capabilities.