Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY22 Earnings Presentation
32 slides from Arvind Fashions's earnings presentation, Feb 11, 2022
Slide 1: Outcome of Board Meeting letter
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHt\ l GROUP Corporate Office: Du Pare Trinty, 8"' Floor. 17, M.G. Rond. Bengnluru - 560 UO I Te l : 9 1-80-4 155 060 1. Fax: 91-80-4 1550651 Website: http www.arvindfashion s.co111 February 11, 2022 BSE Limited National Stock Exchange of India Ltd . Listin
Slide 2: Annexure-1 Regulation 30 disclosure
ARVIND FASHIONS LIMITED A ME !BER OF THE LALBHAI GROUP Corporate Office : Du Pare Trinty, 8" Floor, 17 , M.G. Road, ~~nga lu ru - 560 00 I Tel : 91-80-4 155 060 I. Fax : 9 1-80--+ 15506J I Website: http www. arvindfashi ons.com ANNEXURE-1 Details required under Regulation 30 of the SEBI LODR Regulat
Slide 3: Auditor's Review Report on Standalone Financial Results
SORAB S. ENGINEER & CO. DELOITTE HASKINS & SELLS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Arvind Fashions Limited 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of Arvind Fashions Limi
Slide 4: Auditor's Review Report (continued)
SORAB S. ENGINEER & CO. DELOITTE HASKINS & SELLS 6. The comparative financial information of the Company for the quarter and nine months ended December 31, 2020 and for the year ended March 31, 2021 Included in this Statement had been rev iewed/ audited by one of the joint auditors, who had expresse
Slide 5: Standalone Financial Results
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Slide 6: Notes to Standalone Results
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Slide 7: Notes to Standalone Results (continued)
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Slide 8: Auditor's Review Report on Consolidated Financial Results
SORAB S. ENGINEER & CO. DELOITTE HASKINS & SELLS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOUDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Arvind Fashions Limited 1. We have re viewed the accompan ying Statement of Consolidated Unaudited Financial Results of Arvind Fashions
Slide 9: Auditor's Review Report (continued)
SORAB S. ENGINEER & CO. DELOITTE HASKINS & SELLS 6. We draw attention to Note 4 of the statement, which describes the uncertainties and the impact of COVID19 pandemic on the Group's operations and results as assessed by the Management. Our conclusion on the statement is not modified in respect of th
Slide 10: Annexure: List of Subsidiaries
SORAB S. ENGINEER & CO. DELOITTE HASKINS a SELLS Annexure to Independent Auditor's Review Report The Parent 1. Arvlnd Fashions Limited List of Subsidiaries 1. Arvlnd Lifestyle Brands Limited 2. Arvlnd Beauty Brands Retail Private Limited 3. PVH Arvlnd Fashion Private Limited 4. Arvlnd Youth Brands P
Slide 11: Consolidated Financial Results
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Slide 12: Notes to Consolidated Results
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Slide 13: Notes to Consolidated Results (continued)
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Slide 14: Press Release: Sales growth of 30% and EBITDA growth of 62%
PRESS RELEASE Arvind Fashions reports strong performance with sales growth of 30% and EBITDA growth of 62% resulting in achievement of positive PAT milestone Bengaluru, Feb 11, 2022: Arvind Fashions Limited (AFL), India’s leading casual and denim player, has declared its financial results for the th
Slide 15: Contact and Disclaimer
For more information, please contact: Ankit Arora Head – Investor Relations Arvind Fashions Limited Ankit.arora@arvindbrands.co.in Mobile: +91 99206 64475 Disclaimer: This document by Arvind Fashions Limited (‘the Company’) contains forward-looking statements that represent our beliefs, projections
Slide 16: Q3 FY22 Results Presentation
Arvind Fashions Limited Q3 FY22 Results Presentation February 2022
Slide 17: Agenda
Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 2
Slide 18: Q3 FY22 Highlights – PAT positive quarter
Q3 FY22 Highlights – PAT positive quarter Strong financial Power Brands Robust profitability performance • 30% sales growth Y-o-Y; 20% growth • 25% revenue growth leading to • 62% growth in EBITDA to Rs. 106 (vs. pre-COVID) EBITDA margin expansion of 150 bps crores; margin expansion of 200 bps • 340
Slide 19: Q3 FY22 revenue was AFL's highest in last 11 quarters
Q3 FY22 revenue was AFL’s highest in last 11 quarters journey Sales (Rs. Crs) 1,008 895 837 812 773 685 658 577 5% 7% 382 41% 319 4% 72 12% Q1FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 4 * Continuing business
Slide 20: Sharper execution during festival season resulting in robust profitability
Sharper execution during festival season resulting in robust profitability metrics Sales (Rs. Crs) EBITDA (Rs. Crs) 1008 106 +30% +62% 773 65 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 5 Sales growth of 20%+ over pre-COVID (Q3 FY20)
Slide 21: Launched new retail identity of US Polo Assn.
AfVInD +ASWIOn s Launched new retail identity of US Polo Assn. U.S. POLO ASSN. SINCE 1890 6
Slide 22: EBOs witnessed strong growth while department stores stay muted
EBOs witnessed strong growth while department stores continue to stay muted (vs pre-COVID) Stores Dept. Stores 159% FY21 FY22 FY21 FY22 96% 121% 107% 66% 84% 57% 54% 50% 63% 44% 22% Oct Nov Dec Oct Nov Dec Current year & last year sales as % of same months in FY20 (pre-COVID) 7
Slide 23: Continue to strengthen leadership position in online channel
Continue to strengthen leadership position in online channel Online revenue over same Key Drivers period Omni-channel Q3 FY20 x • Omni-linkage of 50+ stores in Q3 taking total count to 800+ Fulfilment capacity • 1.3 Mn+ orders processed from own D2C warehouse Channel contribution Q3 FY21 1.8x
Slide 24: Q3 FY22 - Groupwise Performance
Q3 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) Q3 FY22 Q3 FY21 % Growth Q3 FY22 Q3 FY21 Power Brands 806 645 25% 93 65 Specialty Emerging Retail Brands 202 128 58% 13 0 Total 1008 773 30% 106 65 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow Emerging B
Slide 25: YTD FY22 - Groupwise Performance
YTD FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) YTD FY22 YTD FY21 % Growth YTD FY22 YTD FY21 Power Brands 1743 974 79% 148 30 Specialty Emerging Retail Brands 397 253 57% 5 (12) Total 2139 1227 74% 153 18 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow
Slide 26: Efficient working capital leading to positive cash flow generation
Efficient working capital leading to positive cash flow generation Figures in Rs Crs. Dec’21 Dec’20 Change Sep’21 Inventory 985 931 54 948 • Strong process controls around inventory & debtors yielding Receivables 522 658 (136) 622 results, thereby leading to efficient working capital cycle GWC 1507
Slide 27: Agenda
Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 12
Slide 28: Q3 FY22 - Performance Snapshot
Q3 FY22 - Performance Snapshot Reported (Rs Crs.) Q3 FY22 Q3 FY21 % growth Revenue from Operations 1008 773 30% Other Income 9 6 53% Total Income 1017 779 31% • Deleveraging helped drive lower interest costs EBITDA 106 65 62% • Achieved significant Finance Costs 27 41 (35%) milestone of becoming PAT
Slide 29: YTD FY22 - Performance Snapshot
YTD FY22 - Performance Snapshot Reported (Rs Crs.) YTD FY22 YTD FY21 % growth Revenue from Operations 2139 1227 74% Other Income 46 87 (47%) Total Income 2185 1315 66% EBITDA 153 18 741% Finance Costs 101 139 (27%) Depreciation and amortisation 172 176 (2%) Exceptional items - (45) - PBT from contin
Slide 30: Agenda
Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 15
Slide 31: Way forward
Way forward Short term • Q4 to be impacted (Y-o-Y) on account of COVID wave 3 related lockdowns; encouraging recovery post lifting of restrictions. Expect full recovery by March • Growth through retail & online channel to help strengthen leadership position • On track to open 150+ stores in FY22 • C
Slide 32: Thank You
Thank You