Aditya Vision Limited (AVL) held an Analyst/Investor Call on May 9, 2025, to discuss the audited financial results for the quarter and year ended March 31, 2025.
Q4 FY25 saw a strong performance, described as the best Q4 in AVL's history, with revenues growing 30% year-on-year to ₹487 crore from ₹376 crore in Q4 FY24.
Profit After Tax (PAT) for Q4 FY25 increased by 104% year-on-year to ₹16 crore from ₹8 crore.
For the full year FY25, revenue surged by 30% to ₹2,260 crore, up from ₹1,743 crore in FY24, maintaining a 30% CAGR revenue growth over the past 10 years.
Full year FY25 PAT grew 37% to ₹105 crore compared to ₹77 crore in the previous year.
EBITDA margin was maintained at 9% for FY25, with Q4 FY25 EBITDA margin at 8.7%.
Same-Store Sales Growth (SSSG) was 19% for Q4 FY25 and 15% for the full year FY25.
The company's inventory peaked at ₹698 crore at March end due to a strategic build-up ahead of the busy Q1 season and anticipation of potential compressor supply uncertainties. The average inventory level for FY25 was ₹494 crore quarterly.
Management expects high-velocity items built up in inventory to be liquidated quickly as Q1 demand kicks in, historically resulting in positive cash flow by the end of the summer season.
As of March 31, 2025, AVL had 175 stores: 112 in Bihar, 29 in Jharkhand, and 34 in Uttar Pradesh (UP). 30 new stores were opened in FY25, mostly in UP, including 10 in Central UP with 6 in Lucknow.
Bihar contributed 77% of revenue in Q4 FY25 and 80% for FY25, with Jharkhand contributing 13% (Q4) and 12% (FY25), and UP contributing 10% (Q4) and 8% (FY25).
Management commented that despite unseasonal rains causing a slow start in April, the company is seeing growth, and they are bullish about demand picking up in the latter half of May and June.
Guidance for store additions is 25-30 annually, with a sharp focus on UP expansion. The company sees potential for around 200 stores in UP in the next 2-3 years.
The average new store size has increased to 4,500 sq ft (from 4,000 sq ft overall), leading to increased CAPEX and working capital requirements. This is driven by optimism for performance in high-density population areas like UP and the strategy to offer an enhanced customer experience.
The company maintains a regional marketing strategy due to cultural similarities across Bihar, Jharkhand, and UP, deeming national campaigns unnecessary for now.
Management expects sustainable SSSG to be in double digits going forward.