Indian Watch market is estimated to reach Rs, 22,300 Cr by 2025, a CAGR of 10% over 2020 from Rs. 13,500 Cr. Of this, the Premium & Luxury Watches segment is poised to reach Rs. 12,000 Cr by 2025, a CAGR of 12.5% from Rs. 6,600 Cr. in 2020. A huge rise in Indian urbanisation, increase in disposable income, growth and adoption of luxury brands in India, favourable reforms incl. GST, UPI, FDi in multi-brand retail among others and a robust rise in e-commerce are some of the reasons attributed to this growth. These and many others insights are part of the Quarterly Financial presentation of Ethos Watches, among the top watch retailers in India and a listed entity in the BSE.
The company’s revenue from operations in Q2 Fy 22-23 grew 32% to Rs. 177 Cr. over the same period last year when it was Rs. 134 Cr. However, the company’s EBITDA grew 2.5 times to Rs. 22 Cr during the same period when compared to last year when it was Rs. 8.8 Cr. Profit before Tax grew 3.3 times to 19.4 Cr as against Rs. 5.9 Cr last year. The company operates 48 stores across 17 Indian cities.
For the half year ended 30 Sep. ‘22, the company earned Rs. 351 Cr from operations, a growth of 57% over last year when it was Rs. 223 Cr. H1 FY 22-23 EBITDA grew 3.7 times to Rs. 43.5 Cr as against Rs. 11.8 Cr last year while its PBT grew 6 times to Rs. 37.7 Cr from Rs. 6 Cr last year. The phenomenal growth has been due to multiple macro-economic factors even as customers buying luxury and premium watches are back in action at offices, social events and the most important “Big Fat Indian weddings”.
The company’s e-commerce website is ranked among the 8th in India. Total customer billing for the first half of the financial year grew a whopping 56% to 4 lakh from 2.61 lakh last year. The company employs over 400 people, has an exclusive arrangement to trade 35 brands and sells over 50 brands of premium and luxury watches. The company’s omni-channel model allows potential customers to explore models, place orders and get them delivered at doorstep. The company also operates a Certified Preowned Outlet in Delhi supported by a website. Customers already owning premium and luxury watches can sell their precious timepieces to Ethos and receive money in lieu or a credit note which can be used to buy a new one.
Parent KDDL owns a majority of 61% in Ethos Ltd. The retail channel has benefitted from the long-standing relationship held by the parent with various reputed multi-national companies, which has been exporting dials to several brands across the world since 1981. Noted watch brands like Carl F Bucherer, Raymond Weil, Oris SA, Corum, among several others are exclusively sold in India by Ethos.
The company holds over 30,000 units at any time across their stores and has 14 Ethos Summit Stores, the luxury editions. The company also operates a store at the International Terminal of Delhi’s Indira Gandhi International Airport. The retailer operates 10 luxury mono-brand watch boutiques and one pre-owned watches outlet. The size of pre-owned watch market in India in 2025 is estimated to be 200 Cr up from Rs. 35 Cr in 2020. Other than watches, the company has entered luxury retail of jewellery with the Messika brand from Paris and the century old luxury luggage brand Rimowa from Germany.