Apparels & accessories company Arvind Fashions announced Q1FY24 results: Revenues grew by 4% to Rs 957 crore compared to Rs 920 crore in Q1FY23 despite a challenging demand environment. Growth was largely led by department stores and retail channels posting 4% LTL along with the addition of 45 EBOs during the quarter. Gross margins expansion of 340 bps YoY to 52.8%, due to healthy full-price sell-thru’s Power brand's EBITDA margin significantly improved to 12.4%, higher by 130 bps vs. Q1FY23 Emerging brands registered a strong growth of 15% aiding higher EBITDA margin by 490 bps YoY Adjacent categories continued their growth momentum with footwear and kids wear businesses growing by 30%+ and 12% respectively 24% growth in EBITDA to Rs 116 crore compared to Rs 94 crore in Q1FY23. EBITDA margins higher by 190+ bps through operating leverage and gross margin improvement Continued sharper focus on inventory & debtors resulted in lower gross working capital by 15 days Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said, “Our differentiated offering through exciting brands portfolio continues to show good traction despite soft market scenario. We continue to remain sharply focused on improving profitability through superior retail execution along with cost optimization. We are confident that our decisive focus on scaling up existing brands will help deliver substantial value to all our customers and stakeholders.” Result PDF
Apparels & Accessories company Arvind Fashions announced Q4FY23 results; Revenues grew by 24% to Rs 1,140 crore compared to Rs 917 crore in Q4FY22. This was aided by sharp rigour on retail operations leading to robust retail LTL of 17% and robust growth in other offline channels. Power brands revenues registered growth of 26% leading to strong improvement in its EBITDA margins by 120 bps U.S. Polo Assn. continued its domination in casual lifestyle category with significant momentum in its journey towards 2,000+ crore NSV Investment in brand adjacencies yielding strong results; footwear and kids wear businesses grew by 50%+ and ~25% respectively 47% growth in EBITDA to Rs 138 crore compared to Rs 94 crore in Q4FY22. EBITDA margins improved by 190 bps through lower discounting, higher sell-thru’s, and operating leverage Tighter inventory management resulted in greater than 4x turns, aiding lower gross working capital by 22 days ROCE (Q4 annualized) at ~14% Board of Directors of the Company recommended a dividend of Re 1/- (Rupees One only) per equity share of Rs 4/- each for the financial year ended 31st March, 2023, 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, “Our differentiated brand proposition across multiple categories and channels continued to attract robust consumer demand, resulting in Company crossing milestone of 4,000 crore NSV and an improved financial performance across all metrics during FY23. We continue to expand our reach across the country and remain excited about the future potential to capture significant growth opportunities that lie ahead along with sharper focus on improving profitability further and generate higher return on capital employed (ROCE).” Result PDF
Arvind Fashions announced Q3FY23 results: Q3FY23: Recorded best-ever sales in Q3 Revenues grew by 17% to Rs 1,179 crore compared to Rs 1,008 crore in Q3FY22. This was aided by industry-leading retail LTL of 12%+ and over 40% growth in the department stores channel. Power brands revenues registered growth of 18% leading to strong improvement in its EBITDA margins by ~140 bps U.S Polo Assn. continued leadership dominance in casual wear with its NSV crossing 1,500 crores at the end of Jan ’23 Brand adjacencies becoming significant growth drivers for the company. Footwear and kids wear businesses registered 45%+ growth YoY Industry-leading full price sell-through for AW’22 drove gross margin expansion of 160 bps (YoY) EBITDA margin higher by 110 bps, led by improvement in gross margins and operating leverage. EBITDA increased to Rs 136 crores (vs Rs 106 crores in Q3 FY22); growth of 29% Sustained ROCE (annualized) at ~15% in Q3FY23 Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO, said, “Our Q3 results reflect further infusion of energy into our business with strong portfolio of brands, delivering healthy results with 17% growth in NSV and nearly 30% growth in EBITDA. With sharp focus on execution and customer experience, business delivered 12%+ retail like-to-like sales growth and record sell through. Our aim continues to be on improving profitability further and deliver a higher ROCE from our business.” Result PDF