Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q2 FY2021 Earnings Presentation
21 slides from Arvind Fashions's earnings presentation, November 2020
Slide 1: Arvind Fashions Limited Q2 FY21 Results Presentation
Arvind Fashions Limited Q2 FY21 Results Presentation Nov 2020 0
Slide 2: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 1
Slide 3: Making AFL Stronger & Fit for Growth – Q2 Highlights
Making AFL Stronger & Fit for Growth – Q2 Highlights 50% September 1 Good sales recovery in September and continuing into the festival period 75%+ October 21% in Q2 2 Strong growth in online 65% In Oct Supported by good sales recovery, EBITDA loss of continuing business (pre IndAS 116) 3 reduced fro
Slide 4: Sales Recovery
Sales Recovery Overall 41% 75% 50% 46% 39% 12% Q1 Q2 Jul Aug Sep Oct 3
Slide 5: Sales Recovery Channelwise
Sales Recovery Channelwise This year sales as % of last year same month sales Stores Dept. Stores 50% 66% 46% 54% 39% 50% 37% 19% 20% 15% 6% 3% 0% 0% Apr May Jun Jul Aug Sep Oct Apr May Jun Jul Aug Sep Oct Started slow, now picking up 4
Slide 6: Sales Recovery Channelwise – Online
Sales Recovery Channelwise Online NNNOW + Marketplaces Revenue 121% 165% FY20 x 125% 124% 113% FY21 YTD Sep 1.7x 40% • 170% of LY revenue already achieved till Sep post Q1 Q2 Jul Aug Sep Oct lockdown • Own online sales up 3X post lockdown 5
Slide 7: Cost Control
Cost Control Total (Rs Crs.) 378 338 -38% 234 -31% 234 Rent Savings (Rs Crs.) Q2’20 Q2’21 Q4’20 Q2’21 • Booked in Q1: Rs 70 Crs • Booked in Q2: Rs 29 Crs Employee Emoluments (Rs Crs.) Other Expenses (Rs Crs.) Booked in Booked in Q1 Q2 86 77 292 261 Q1 41.3 - 64 -16% 64 -26% -35% 170 -42% 170 Q2 18.0
Slide 8: Gross Working Capital Reduction of Rs 360 Crs. in H1
Gross Working Capital Reduction of Rs 360 Crs. in H1 Inventory(Rs Crs.) Debtors (Rs Crs.) 1,367 781 1,322 - 215 696 -145 1,152 636 Mar-20 Jun-20 Sep-20 Mar-20 Jun-20 Sep-20 * Above figures are inclusive of inventory & debtors pertaining to discontinued businesses Gross Working Capital Reduction Rs 2
Slide 9: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 8
Slide 10: Q2 FY21 - Performance Snapshot
Q2 FY21 - Performance Snapshot Reported Q2 FY21 Q1 FY21 Change Q2 FY20 Revenue from Operations (Rs Crs.) 437 94 363% 1049 Other Operating Income (Rent 27 66 (59%) 6 concessions) (Rs Crs.) Total Income (Rs Crs.) 464 160 190% 1056 EBITDA (Rs Crs.) (18) (41) - 122 PBT before exceptional item (Rs Crs.)
Slide 11: Exceptional Items & Discontinued Businesses
Exceptional Items & Discontinued Businesses Exceptional Items of Rs. (45) crores • Gains on sale of Minority Stake in FM business amounting to Rs. 113 crores • Provision on aged inventory & inventory where sales are badly affected by Covid 19 - Rs. 97 Crs o This provision will help to faster liquida
Slide 12: H1 FY21 - Performance Snapshot
H1 FY21 - Performance Snapshot Reported H1 FY20 H1 FY21 Growth Revenue from Operations (Rs Crs.) 1889 531 (72%) Other Operating Income (Rent 7 93 concessions) (Rs Crs.) Total Income (Rs Crs.) 1896 624 (67%) EBITDA (Rs Crs.) 145 (60) PBT before exceptional item (Rs Crs.) (193) (334) Exceptional Items
Slide 13: Distribution Footprint
Distribution Footprint Q2 FY20 Exit North Store Sq Ft (Lacs) Store Count Count 480 West Stores 1272 20.0 Store Count 249 Dept. Stores 3500+ - East Store Count 144 MBO 10000+ - South Store Count Innwer wear MBO 13000+ - 399 12
Slide 14: Strong Presence in Categories Recovering Faster
Strong Presence in Categories Recovering Faster Accelerated Casualization & Work from Home Innerwear/ Casual Brands Footwear Kidswear DIY Beauty Comfortwear • USPA/TH/FM/CK • Supported with • Product categories of • Strong demand for • Strong omni-push portfolio of strong comfort wear launch casual
Slide 15: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 14
Slide 16: FY21 Outlook – Q3/Q4
FY21 Outlook – Q3/Q4 Better than expected sales recovery • Estimate 75-80% recovery in Q3 • Q4 expected to be back to last year levels Sustain FY cost reduction @ 40% Online on growth path. Estimated to accelerate growth on the back of Release Rs 300 Crs in Gross • Increased stores integrati
Slide 17: Exit FY21 - Well Positioned for Value Creation in Medium and Long Term
Exit FY21 - Well Positioned for Value Creation in Medium and Long Term 1. 6 strong brands 2. Leader in casualwear 3. De-risked Unlimited/Emerging brands business model 4. Good momentum in high potential categories – Kidswear, Innerwear, Footwear and Beauty 5. Head start in online – strengthened with
Slide 18: Annexures
Annexures
Slide 19: Financials – P&L
All Figures in Rs Cr. Q2 FY21 Q2 FY20 Revenue from Operations 437 1049 Other Operating Income(Rent concessions) 27 7 Total Income 464 1056 Cost of Goods Sold 270 592 Employees' Emoluments 58 76 Others 154 266 EBIDTA (18) 122 Financials – P&L Margin (4%) 12% Other Income Interest & Finance Cost 57 67
Slide 20: Balance Sheet As On 30.09.2020
Particulars (in Rs Cr.) 30.09.20 31.03.20 30.09.19 Net Worth 652 685 933 Borrowings 1058 1210 1083 Capital Employed 1710 1895 2016 Inventory 1018 1367* 1393 Receivables 576 781* 980 Balance Sheet Creditors 1053 1325 1407 As On Net Working Capital 542 823 967 30.09.2020 Net Fixed Asset 422 502 527 Ot
Slide 21: Thank You
Thank You