Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q4 FY21 Earnings Presentation
25 slides from Arvind Fashions's earnings presentation, Jun 3, 2021
Slide 1: Cover letter: outcome of board meeting
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G Road, Bangalore – 560 001 Tel: +91-80-4155 0601, Fax: 91-80-4155 0651 Website: http://www.arvindfashions.com June 03, 2021 BSE Limited National Stock Exchange of India Ltd. Listing Dept. / Dep
Slide 2: Cover letter continued: enclosures
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G Road, Bangalore – 560 001 Tel: +91-80-4155 0601, Fax: 91-80-4155 0651 Website: http://www.arvindfashions.com 2. A copy of the press release being issued by the Company in respect of Audited Fi
Slide 3: Q4 FY21 Results Presentation
Arvind Fashions Limited Q4 FY21 Results Presentation June 2021
Slide 4: Agenda
■ Response to Covid-19 ........................................................ . Q4 & FY21 Performance Highlights .................................. 'I --~ -§1 Agenda ~ -1§)11 Q4 & FY21 Results with IndAS . . . . . . . . . . . . . . . . . •·t~ Way Forward ...........................................
Slide 5: Covid-19 Impact and response
J\rVJnD +ASHIOn s Covid-19 Impact and response • Facilitated vaccine for 800+ employees in first onsite camp, further camps planned across India • Created Safety Council, launched volunteer network and rolled out SOPs across operations against COVID • Provided enhanced financial assistance for COVID
Slide 6: Agenda
■ Response to Covid-19 ........................................................ . Q4 & FY21 Performance Highlights .................................. 'I '-~ ~ ~ Agenda -(§)11 Q4 & FY21 Results with IndAS . . . . . . . . . . . . . . . . . •·t~ Way Forward """""""""""""""""""""""""""""""""""""""""""""
Slide 7: Q4 FY21 Highlights
AfVInD +ASWIOn s Q4 FY21 Highlights 1 Stronger sales recovery at 114% with LTL sales fully recovered 2 Gross Working Capital reduced by Rs. 523 Crs (compared to Mar’20) 3 USPA, TH : Sales recovery strongest at 125% with double digit EBITDA (pre-IndAS). Brand extensions – Innerwear & Footwear grew 30
Slide 8: Sales Recovery & EBITDA with strong performance in H2 FY21
AfVInD +ASWIOn s Sales Recovery & EBITDA with strong performance in H2 FY21 Rs. Crs Sales & Recovery % EBITDA ■ FY20 ■ FY21 901 122 124 86% 769 97 84 114% 49 437 23 39% 94 -19 11% -41 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 6 Sales recovery at 97% in H2 FY21 * Continuing Brands
Slide 9: Sales Recovery : Online
AfVInD +ASWIOn s Q4FY21 Sales Recovery : Online Online 396% NNNOW + Marketplaces Revenue FY20 x 230% 121% FY21 3.6x 40% Q1 Q2 Q3 Q4 7
Slide 10: Sales Recovery : Stores
Q4FY21 AfVInD +ASWIOn s Sales Recovery : Stores Stores 102% • Full recovery in the channel with stores reaching the same level sales as last year – 69% LTL marginally positive • Closure of key markets in March second half 44% slowed down the recovery for the brands 9% Q1 Q2 Q3 Q4 8
Slide 11: FY21 Highlights
FY21 Highlights 9
Slide 12: FY21 Highlights
AfVInD +ASWIOn s FY21 Highlights 1 Digital scale up : Online channel contributed 30%+ of total revenues 2 Cost reduction by 40% (amounting to ~Rs. 540 Crs) across rentals, warehouse, manpower optimization and store opex 3 Non-debt fund infusion of ~Rs. 760 Crs leading to net debt reduction of 300+ C
Slide 13: Strong Performance in H2 FY21
AfVInD +ASWIOn s Strong Performance in H2 FY21 Sales (Rs Crs.) EBITDA (Rs Crs.) EBITDA % I I H1 H2 H1 H2 H1 H2 ~~ I Power 325 1192 (34) 147 (10.5%) 12.3% Brands I II I_I_ ~ Specialty 132 331 1 34 0.6% 10.4% - TiiT Retail I 11 11 11 ~~ II (35.4%) l~I0%~ - Emerging Brands 75 147 I (26) I 0 -----------
Slide 14: Sharper focus on working capital improvement
AfVInD +ASWIOn s Sharper focus on working capital improvement Figures in Rs Crs. Mar’21 Mar’20 Change Inventory 969 1367 (397) • Gross working capital reduced by 523 Crs leading to improved inventory & debtor days* Receivables 655 781 (126) I I-;=:::::::::::: ;::::::===========; • Strong focus on in
Slide 15: Debt reduction
AfVInD +ASWIOn s Debt reduction Rs. Crs • Non-debt fund infusion of ~760 Crs* in FY21 1244 • Fund raise along with improvement in working 976 943 capital cycle helped reduce the debt by 300+ Crs Mar'20 Dec'20 Mar'21 13 * 96 Crs of final call money of Rights Issue to be received in Q1 FY22
Slide 16: Agenda
■ Response to Covid-19 ........................................................ . Q4 & FY21 Performance Highlights .................................. 'I --~ -§1 ~ -1§)11 Agenda Q4 & FY21 Results with IndAS . . . . . . . . . . . . . . . . . •·t~ Way Forward """""""""""""""""""""""""""""""""""""""""""
Slide 17: Q4 FY21 - Performance Snapshot
AfVInD +ASWIOn s Q4 FY21 - Performance Snapshot Reported (Rs Crs.) Q4 FY21 Q4 FY20 Change Revenue from Operations 769 673 14% Other Operating Income 25 42 (40%) Total Income 794 715 11% EBITDA 97 49 98% PBT (38) (117) - Exceptional Items - (61) - Discontinued Operations (34) (26) - Tax (27) (4) - PA
Slide 18: Q4 FY21 - Groupwise Performance
AfVInD +ASWIOn s Q4 FY21 - Groupwise Performance Sales (Rs Crs.) EBITDA (Rs Crs.) I _ _ _ _ __ EBITDA % Q4 FY21 % Recovery Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Power Brands ~-I 553 117% 83 I 43 II 15.0% I_I_ 9.1% Specialty Retail ._ _ _ _ _ _ . ~ I 153 110% 15 1 4 II 9.5% I~I~ 3.0% Emerging Brands ~-I 62
Slide 19: FY21 - Performance Snapshot
AfVInD +ASWIOn s FY21 - Performance Snapshot Reported (Rs Crs.) FY21 FY20 Change Revenue from Operations 2201 3614 (39%) Other Operating Income 128 60 113% Total Income 2329 3673 (37%) EBITDA 121 318 (62%) PBT (406) (377) - Exceptional Items (45) (61) - Discontinued Operations (103) (59) - Tax (42)
Slide 20: FY21 - Group wise Performance
AfVInD +ASWIOn s FY21 - Group wise Performance Sales (Rs Crs.) EBITDA (Rs Crs.) EBITDA (Rs Crs.) FY21 % Recovery FY21 FY20 FY21 FY20 Power Brands 1517 - 64% I 113 I 302 II 7.4% l~I_ 12.7% ~~ I Specialty 463 54% 35 68 7.6% 7.9% I IiI Retail I 11 11 I ;::::=======I=========; Emerging Brands 222 ~ 58%
Slide 21: Balance Sheet
Particulars (Rs Cr.) Mar’21 Mar’20 Net Worth 735* 685 Borrowings 903 1210 Capital Employed 1638 1895 Inventory 900 1367 Receivables 626 781 Creditors 932 1325 Balance Sheet Net Working Capital 594 823 Net Fixed Asset 381 502 Discontinued Operations Assets 81 - Other Assets 582 571 Capital Employed 1
Slide 22: Distribution Footprint
AfVInD +ASWIOn s Distribution Footprint Q4 FY21 Exit North Store Sq Ft (Lacs) Store Count Count 504 West Stores 1249 19.4 Store Count 238 Dept. Stores 3500+ - East Store Count 127 MBO 10000+ - South Innerwear Wear Store Count MBO 13000+ - 380 Number of Stores Opened in Q4 : 24 20
Slide 23: Agenda
■ Response to Covid-19 ........................................................ . Q4 & FY21 Performance Highlights ··································[I 1 ..:§il • Agenda . . . . . . . . . . . . . . . . . •·t~ Q4 & FY21 Results with IndAS Way Forward ..................................................
Slide 24: Way forward
Way forward Short term • Covid second wave to impact Q1 performance. Highest impact witnessed in May, however with gradual opening in June, expect business to return to normalcy by end Q2 • 150+ stores to be opened in FY22 • Sharp focus on costs and tight working capital management to lead to improv
Slide 25: Thank You
Thank You