Ethos Q3 reflect Consumer Optimism

India’s largest premium watches retail chain “Ethos” announced Q3 FY 22-23 results on 3 Feb. ‘23. The numbers are reflective of the current mood of the aspirational class of consumers in India which has been on a spending spree. Q3 typically has the most number of weddings, though 2022 was a bit different. Still, Revenue from Operations grew 17.6% to Rs. 229 Cr vs Rs. 195 Cr during the same period in 2021. The numbers of Q3 FY 21-22 were splendid, on the back of the dreaded 2nd wave of Covid-19 during the summer months. The recent quarter’s sales are very reassuring that the country’s bounce back after the pandemic is here to stay, despite a scare of another wave late-Dec. ‘22.

What’s even more interesting to note is that PBT grew a whopping 63% to Rs. 28.8 Cr for the quarter over last year when it was Rs. 17.6 Cr while EBITDA grew 48% during the same period. This is perhaps due to lower discounts than the previous year, when most retailers were flooded with stocks due to the 12-18 month intermittent, pandemic-led lockdowns. At the time, retailers had no other choice but to clear stocks to ensure cash flows were streamlined while also ensuring new stocks and models made way in.

For the 9M FY 22-23, revenues grew 38.8% to Rs. 581 Cr (from Rs. 418 Cr) over the same period last year while PBT grew a massive 180% to Rs. 66 Cr from a mere Rs. 23 Cr. EBITDA on the other hand grew an impressive 127% to Rs. 74.8 Cr (from Rs. 32.9 Cr) over the first 9 months of the year. This is a reassurance that Indians are back to acquiring timepieces not just for fashion or adornment but are seriously investing in bridge to luxury brands (Rs. 1.50 lakhs onwards) as well as on premium, luxury brands (from Rs. 3 lakhs onwards). Online billings for the company grew an impressive 18.5% during the quarter and a massive 38% for the 9M FY 22-23.

Ethos also has a division which sells certified premium watches. The company believes there is a large untapped opportunity in this segment, with two segments pitching in – watch connoisseurs on one hand and the aspiring watch collectors on the other. Ethos operates over 50 stores across 18 Indian cities and enjoys being the most relatable and most respected Watch retail chain in India.