Talwalkars Better Value Fitness Ltd. expects to recover from a sharp contraction in margin that was witnessed due to its expansion plan during the quarter ended December.
“We are ramping up operations across all segments of our lifestyle business. We have increased our Zorba (yoga) centres to 80 and we expect the club operations to be ready soon,” Girish Nayak, group chief financial officer at Talwalkars told BloombergQuint. “Also, the third quarter is always weak in the fitness and wellness industry as people don't opt for gymming or wellness in the period.”
Ebitda margin to be in the range of 58-60 percent for the rest of the year and FY20, and that too on top of a lower capital expenditure. And, revenue should be in the range of 28-30 percent.Girish Nayak, group chief financial officer, Talwalkars Fitness
Key Highlights: (YoY)
- Revenue rose 76.5 percent to Rs 22.6 crore.
- Net profit rose 62.5 percent to Rs 2.6 crore.
- Ebitda rose 1.1 percent to Rs 8.7 crore.
- Operating margin declined to 38.4 percent versus 67.2 percent.
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