Future Growth Strategy and Financial Overview

Q1 FY17 - FINANCIAL HIGHLIGHTS MONTE CARLO/mmc Its the way you make mil t feel FINANCIAL UPDATE - ■ Q1 FY17 Revenues from Operations increased by 9.8 % to Rs. 756.4 mn. However, excluding the sale of raw material (Fabric & Yarn), Fabric & Yarn sales: Q1 FY17 - Rs. 121.4 mn, Q1 FY16 - Rs. 144.2 mn, Adjusted Revenues increased by 16.5% to Rs. 632.6 mn. Gross Margins remained stable at 71.2%. ■ Overall Growth Outlook is stable and positive due to good visibility on the Order book. ■ Q1 FY17 EBIDTA w/o Other income remained flat at Rs. 94.8 mn. EBIDTA Margin was 12.5%. ■ Advertisement and Marketing expenses increased by 24.8% to Rs. 100.1 mn as compared to Rs. 80.2 mn YoY. ■ The current strategy is to establish our Brand visibility on a Pan India basis along with increased focus on Southern & western India, therefore the increase in advertising and marketing expense should be seen as an investment which would lead to long term benefits of enhancing our Overall brand recall. The management feels that the sale from the southern and western India will increase to 10% of the overall revenues in the FY17 from 8% in FY16 which shows the acceptance and good growth potential of selling our products in the said region. ■ No Major capex planned for next 2 years. Therefore, Positive Operating leverage expected as the production gains scale during the course of the year. ■ Q1 FY17 PAT increased by 37.8% at Rs. 20.4 mn vs Q1 FY16 PAT of Rs. 14.8 mn due to Lower depreciation and moderating Interest expenses. ☐ 7 New EBO stores opened during the quarter with a focus on Central and Southern regions. Stores opened in Karnataka, Bihar, Chhattisgarh, Madhya Pradesh, Himachal Pradesh, Punjab and NCR. ☐ Foray into the accessories business in leather products. ■ Update on Marketing & Branding - Links for the new Summer Ad campaign launched during the quarter – • Monte Carlo - Summer Collection (Full version Ad) -You Tube Link Monte Carlo - Alpha Summer Collection - You Tube Link Monte Carlo - Tweens Collection (Kids Segment) - You Tube Link 4

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