FONEBOX - Fonebox
Financial Performance
Revenue Growth by Segment
The primary segment of multi-brand retail of smartphones and accessories grew 17% YoY in H1 FY25, reaching INR 164.65 Cr compared to INR 140.19 Cr in H1 FY24. Consumer durables (TVs, ACs, Fridges) are a secondary growth driver.
Geographic Revenue Split
Currently 100% concentrated in Gujarat (Ahmedabad, Surat, Gandhinagar), with active expansion into Maharashtra targeting high per-capita income regions.
Profitability Margins
Net Profit Margin improved to 1.33% in FY25 from 1.15% in FY24. Operating Profit Margin increased to 1.92% from 1.79% YoY.
EBITDA Margin
H1 FY25 EBITDA was INR 2.82 Cr (1.71% margin), a slight 1% decrease from INR 2.86 Cr in H1 FY24 due to an 18% increase in expansion-related expenses.
Capital Expenditure
Capital Work in Progress (CWIP) of INR 2.94 Lakhs as of H1 FY25 for ongoing expansion projects.
Credit Rating & Borrowing
Total borrowings increased significantly to INR 2.30 Cr from INR 0.18 Cr YoY. Finance costs for H1 FY25 dropped 93% to INR 2.25 Lakhs from INR 30.68 Lakhs.
Operational Drivers
Raw Materials
Finished electronic goods (Smartphones, Laptops, Smart TVs, ACs) constitute the primary cost. Brands include Samsung, Apple, Vivo, and Oppo.
Import Sources
Sourced from manufacturers/distributors; mentions potential supply chain risks from production disruptions in other countries (typically China/Vietnam for electronics).
Key Suppliers
Key suppliers include Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, TCL, Haier, Lloyd, Daikin, Voltas, Mi, and OnePlus.
Capacity Expansion
Currently operates 150+ stores (franchisee-owned, Fonebox-managed) plus COCO stores. Expanding into Maharashtra in FY25.
Raw Material Costs
Total expenses were INR 161.83 Cr in H1 FY25, representing 98.3% of total income.
Manufacturing Efficiency
Transitioning to efficiency metrics including per square feet per store revenue and per person revenue for FY25.
Logistics & Distribution
Employs third-party transportation for efficient device delivery to retail outlets.
Strategic Growth
Expected Growth Rate
34-58%
Growth Strategy
Geographic expansion into Maharashtra, focusing on high per-capita income markets. Strategy involves opening new stores rather than converting existing ones to ensure brand seriousness and investment. Focus on increasing per-store revenue through automated inventory management.
Products & Services
Smartphones, Laptops, Smart TVs, Air Conditioners, Fridges, and mobile accessories.
Brand Portfolio
Fonebook, My Mobile.
New Products/Services
Expansion into consumer durables (Laptops, TVs, ACs) to complement the core smartphone business.
Market Expansion
Entering Maharashtra in FY25 to leverage higher consumer buying power.
Market Share & Ranking
Prominent multi-brand retail player in Gujarat; listed on NSE in February 2024.
Strategic Alliances
Partnerships with banking institutions to offer attractive EMI and finance options to retail customers.
External Factors
Industry Trends
Industry is evolving toward premiumization (e.g., Samsung S24 success) and integrated retail-finance models. Fonebox is positioned as a prominent player in the organized retail segment.
Competitive Landscape
Competes with unorganized small players and established digital giants like Amazon/Flipkart.
Competitive Moat
Regional brand strength in Gujarat and a unique franchisee-owned, company-managed model provide a scalable, low-capex growth path.
Macro Economic Sensitivity
Highly sensitive to consumer demand, preferences, and government taxation policies on electronics.
Consumer Behavior
Shift toward EMI-based purchasing and demand for the latest technology models.
Geopolitical Risks
Trade barriers or production halts in manufacturing countries impact product availability.
Regulatory & Governance
Industry Regulations
Compliance with Section 197 for director remuneration and Section 133 for Accounting Standards.
Environmental Compliance
Not disclosed.
Taxation Policy Impact
Effective tax rate of approximately 28% (INR 66.67 Lakhs tax on INR 238.45 Lakhs PBT in H1 FY25).
Legal Contingencies
No pending litigations affecting the financial position as of March 31, 2025.
Risk Analysis
Key Uncertainties
Low entry barriers for new retail entrants and aggressive pricing from e-commerce giants.
Geographic Concentration Risk
100% of current operations are in Gujarat, creating regional economic risk.
Third Party Dependencies
High dependency on major brands (Samsung, Apple, Vivo) for inventory and margin structures.
Technology Obsolescence Risk
High risk of inventory value loss due to the rapid launch cycles of new smartphone models.
Credit & Counterparty Risk
Debtors Turnover Ratio improved by 36.39% to 176.29 in FY25, indicating high receivables quality.