Apparels & Accessories company Arvind Fashions announced Q1FY25 results: Financial Highlights: Revenues grew by 10%+ to Rs 955 crore compared to Rs 867 crore in Q1FY24. Sales growth witnessed significant uptick compared to FY24 levels. Growth in Q1 was led by wholesale channel along with healthy 1.5% LTL in retail channel, despite tough market conditions Gross margins stood at 55.2%, an improvement of 80 bps Y-o-Y, led by focus on full price sell-thru and product cost efficiencies EBITDA grew 19% to Rs 123 crore compared to Rs 103 crore in Q1FY24. EBITDA margin improved by 100 bps Y-o-Y to 12.9% Profit before tax (from the continuing business) grew by more than 67% to Rs 24 crore compared to Rs 14 crore in Q1 FY24 Gross working capital (GWC) days remained stable with inventory days lower by 3 days Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said “AFL’s strong Q1 results reflect an all-round financial performance under tough market conditions. Sharp execution and operational rigour has led to more than 10% revenue growth coupled with 100 bps EBITDA margin improvement delivering significant improvement in bottom-line and efficient working capital management. As demand environment improves, with our investment behind all the growth levers including expansion of retail sq. ft., we remain excited about AFL’s journey ahead” Result PDF
Apparels & Accessories company Arvind Fashions announced Q4FY24 results: Revenues grew by 4% to Rs 1,094 crore compared to Rs 1,055 crore in Q4FY23 and 2-year revenue CAGR of 15%. Growth in Q4 was aided by healthy 4% LTL 17% growth in EBITDA to Rs 148 crore compared to Rs 127 crore in Q4FY23. EBITDA margin improved by 150 bps to 13.5%, despite investment in advertising being higher by ~100 bps YoY PAT (from the continuing business) stood at Rs 25 crore, growth of 72% YoY. Reported PAT grew 123% to Rs 24 crore compared to Rs 11 crore in Q4FY23 Focus on retail excellence helped debtor days being lower by 2 days coupled with tighter control over inventory resulting in gross working capital (GWC) remaining stable ROCE for FY24 improved to 16%+, higher by more than 400 bps YoY Board of Directors of the Company recommended a final dividend of Rs 1.25/- (Rupees One Rupee and Twenty Five Paise only) per equity share of Rs 4/- each, for the financial year ended 31st March, 2024, subject to the approval of the shareholders of the Company at the ensuing Annual General Meeting (‘AGM’) Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said “FY24 has been a differentiated year with sharper execution leading to improvement in all key financial metrics, despite market environment staying subdued. Our continued focus on retail excellence resulted in healthy 4% LTL growth leading to 120 bps improvement in EBITDA margin for the full year. Moving forward, we expect growth to witness strong uptick while continuing to stay decisively focused on scaling our existing brands through innovative retail formats and by accelerating our store network expansion leading to further improve margins & ROCE” Result PDF
Conference Call with Arvind Fashions Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Apparels & Accessories company Arvind Fashions announced Q3FY24 results: Revenues grew by 5% to Rs 1,125 crore compared to Rs 1,073 crore in Q3FY23, with a 2-year revenue CAGR of 12%. The growth was primarily driven by the retail and MBO channels. Gross margin expanded by 480 basis points (bps) YoY to 53.3%, attributed to retail LTL growth of 2% with sharper execution in the retail channel and lower discounting. Revenue growth, coupled with gross margin expansion, resulted in an 18% growth in EBITDA to Rs 150 crore compared to Rs 127 crore in Q3FY23. EBITDA margin improved by approximately 150 bps, despite higher investment in advertising, which increased by 130 bps YoY. Profit After Tax (PAT) from the continuing business (excluding exceptional items) stood at Rs 22 crore, reflecting a YoY growth of 83%. Reported PAT grew by over 6 times to Rs 51 crore compared to Rs 8 crore in Q3FY23. Control over inventory and lower debtors led to a reduction in gross working capital by 5 days. Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said, “Strong financial performance in this quarter reflects the focus on profitable growth with 150 bps improvement in EBITDA, a growth of 18% over Q3 last year. The leadership of our key brandsis getting strengthened with our conscious investment in marketing along with product innovation which has yielded differentiated results and market share gain” Result PDF