Message from the Chairperson & Managing Director
Dear Members,
It is with great pleasure that I present the Annual Report for the
fiscal year 2023-24. In an ever-changing landscape, Electronics Mart has consistently
focussed on delivering value and trust to our stakeholders. Empowered by the solid backing
of our investors and partners, we are equipped to adapt and prosper, drawing on our
extensive expertise as a foundation for growth and expansion.
We are deeply committed to offering the best consumer experience and
ensuring better product availability to meet the shifting needs and preferences of our
customers.
Macroeconomic Scenario
The global economy faced significant challenges in 2023- 24, marked by
volatile market conditions, geopolitical tensions, and supply chain disruptions. Yet, amid
these adversities, India showcased extraordinary strength and robust economic performance.
The nation thrived on robust domestic demand, sound fiscal policies, and an assertive
pursuit of economic reforms. These factors, combined with a growing consumer base and
increased investments, have solidified India's status as a pillar of stability and a
catalyst for growth in the global economic arena.
Industry Dynamics
Several key factors have driven this economic trend, including
increasing urbanisation, rising disposable incomes, the prevalence of nuclear family
units, improved affordability, enhanced rural connectivity, and growing household incomes.
The rise in disposable incomes has empowered consumers to spend more on high-quality
goods, while favourable government policies have created a conducive
business environment. Rapid urbanisation has facilitated access to modern retail formats,
and an increasing working-age population has boosted purchasing power. Moreover, the
consumer durables industry has experienced significant growth, propelled by accessible and
flexible financing options, including zero-interest financing, which has emerged as a key
catalyst recently. Collectively, these elements have substantially increased the demand
for premium products across various market segments.
Consumer Trends and Our Expansion
This year, we saw a significant increase in consumer demand for premium
appliances, indicating a shift towards high-end products like large-screen televisions,
smart inverter ACs, spacious refrigerators, and top- loading washing machines. Responding
to this growing demand, we have made substantial progress by expanding our portfolio and
also expanding our footprint to cater to customers in our key focus areas. In 2023- 24, we
opened 33 new stores across India, bringing our total store count to 160. Today our
footprints include 147 multi-brand outlets (MBOs) and 13 exclusive brand outlets (EBOs).
We opened 32 new MBOs, with 13 in Andhra Pradesh and 13 in Telangana, 06 in the Delhi-NCR
region, and 01 new EBO in Delhi-NCR. With a presence in 61 cities across 06 states, we
remain committed to strengthening our network in existing markets while actively exploring
new opportunities for growth.
Financial Highlights and Segmental Performance
Our financial performance this year has been remarkable. For 2023-24,
our revenue stood at Rs 62,854.06, representing a 15.42% year-on-year increase. Our EBITDA
was recorded at Rs 4,495.15, reflecting 33.75% year-on- year growth with an EBITDA margin
of 7.15%. Profit after Tax (PAT) increased by 49.81% year-on-year to Rs 1,839.83 Million.
Large appliance products accounted for 45% of our revenue, mobile
devices contributed 42%, and small appliances, IT, and other products made up the
remaining 13%. Our top five brands generated approximately 63% of our revenue, with a
significant 98.75% derived from the retail segment.
Our Strategic Approach
Our strategy remains centred on solidifying our presence in existing
markets before venturing into new territories. Tailoring our product assortment and
maintaining a diverse portfolio are crucial to enhancing visibility, strengthening brand
recognition, achieving deeper market penetration, and expanding our customer base. We
place great importance on understanding local market dynamics to ensure sustained
profitability. Delivering a unique shopping experience with an extensive range of
electronic products continues to be a top priority.
Way Forward
Looking ahead, we plan to open 25+ new stores in the upcoming financial
year, anticipating a robust double- digit growth in revenue for 2024-25. Our strategy
includes optimising supply chain operations and enhancing inventory management to maintain
cost competitiveness. Furthermore, we will expand our reach in select geographies and
reinforce our footprint in existing markets, all while nurturing and building partnerships
with leading brands .
Conclusion
On a closing note, I want to highlight that our accomplishments are a
direct result of customer demand, and we take immense pride in providing exceptional
customer service and an enriching shopping experience at all our outlets. I extend my
sincere thanks to our team members for their persistent support and dedication.
Additionally, I would like to express my heartfelt gratitude to our esteemed business
partners, suppliers, channel associates, and other collaborators for their invaluable
contributions to our growth and success. We highly value these partnerships and remain
committed to fostering collaborative efforts that promote mutual prosperity. Together, we
will continue to build on our strengths and seize new opportunities to achieve sustainable
growth.
With best wishes,
Mr. Pavan Kumar Bajaj Chairman & Managing Director
Electronics Mart India Limited