Arvind Fashions reports robust financial performance amidst weak macro with 5% sales growth

Arvind Fashions Limited (AFL), India's leading casual and denim player, has declared its financial results for the third quarter and nine months ended Dec 31, 2023.

Key Highlights for Q3 FY24

- Revenues grew by 5% to Rs. 1,125 Crs compared to Rs. 1,073 Crs in Q3 FY23 and 2-year revenue CAGR of 12%. Growth was primarily led by retail and MBO channel

- Gross margin expansion of 480 bps Y-o-Y to 53.3% driven by retail LTL growth of 2% with sharper execution in the retail channel and lower discounting

- Revenue growth coupled with gross margin expansion resulted in 18% growth in EBITDA to Rs. 150 Crs compared to Rs. 127 Crs in Q3 FY23

- EBITDA margin improved by ~150 bps, despite higher investment in advertising of 130 bps Y-o-Y

- PAT (from the continuing business excl. exceptional item)stood at Rs. 22 Crs, Y-o-Y growth of 83%. Reported PAT grew >6x to Rs. 51 Crs compared to Rs. 8 Crs in Q3 FY23

- Control over inventory & lower debtors led to reduction in gross working capital by 5 days

Commenting on the performance of the company, Mr. 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."

Shares of Arvind Fashions Limited was last trading in BSE at Rs. 453.55 as compared to the previous close of Rs. 465.20. The total number of shares traded during the day was 103804 in over 5817 trades.

The stock hit an intraday high of Rs. 503.05 and intraday low of 423.10. The net turnover during the day was Rs. 47637077.00.

Source : Equity Bulls

Keywords

ArvindFashions INE955V01021 Q3FY24 9MFY24 ResultUpdate