Delhi-NCR Stores To Contribute 20% Revenue In Three Years: Says Electronics Mart India CFO
Over the last two years, Electronics Mart India has expanded its presence in Delhi-NCR, and the Tier 3 and Tier 4 cities in Andhra Pradesh and Telangana.
Electronics Mart India aims to increase its revenue contribution from Delhi and the National Capital Region (Delhi-NCR) to 20% over the next three years, up from the current 5%.
In the past two years, the company has expanded its presence in Delhi-NCR, as well as in Tier 3 and Tier 4 cities in Andhra Pradesh and Telangana. During an interview with NDTV Profit, the company’s Chief Financial Officer, Premchand Devarakonda, outlined the expansion targets for the NCR region.
"Currently, our contribution from NCR stands at around 5% of our total revenue, and we aim to increase it to 20% within the next three years," he said.
Electronics Mart India plans to add 25 stores each year, although not all will be located in Delhi-NCR. "Out of the 25 stores, 10 will be in NCR and 15 will be in the Southern cluster. We are also exploring additional markets around NCR, which may lead to a few more stores in the upcoming year," he mentioned.
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The CFO indicated that the company would not require external funding for its expansion plans. "To support our goal of adding 25 stores annually, we have sufficient internal resources. Therefore, we do not need to seek external financing for our expansion. Our growth strategy is organic, and we aim to add 25 to 30 stores each year," Devarakonda said.
He further explained that not all cash flows will be directed towards the NCR expansion, as "there are other plans in the works." The teams are actively exploring markets around NCR, including Western UP, Haryana, Punjab, Uttarakhand, and Odisha.
Electronics Mart India is expecting a year-on-year revenue growth of 15% through the addition of new stores. "Our targets remain the same, as we were aiming for a 15% year-on-year increase in revenue, and we are on track. The regions we entered over the past couple of years are performing exceptionally well," Devarakonda noted.
Shares of Electronics Mart India Ltd. closed 0.95% higher at Rs 180.52 per share on the NSE on Friday, while the benchmark Nifty 50 index rose 0.91% to close at 24,131.1.
