Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q4 FY25 Earnings Presentation
36 slides from Arvind Fashions's earnings presentation, May 17, 2025
Slide 1: Cover letter to stock exchanges
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: www.arvindfashions.com May 17, 2025 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept. / Dep
Slide 2: Q4 FY25 Results Presentation
Q4 FY25 RESULTS PRESENTATION May | 2025 Q4 FY25 RESULTS
Slide 3: Disclaimer
DISCLAIMER This document by Arvind Fashions Limited (‘the Company’) contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. These forward-looking statements are necessarily subjective and involve known and unknown ris
Slide 4: Agenda
AGENDA 01 02 03 Q4 & FY25 Performance Q4 & FY25 Results Way Forward Highlights Q4 FY25 RESULTS 3
Slide 5: Q4 FY25 Performance Highlights
Q4 FY25 PERFORMANCE HIGHLIGHTS Q4 FY25 RESULTS 4
Slide 6: Market & Economy Update
MARKET & ECONOMY UPDATE Consumer demand environment stays muted Premiumization across categories continues to drive differentiated proposition Consumer choices gravitating towards stronger & established brands Early onset of EOSS leading to higher discounting across industry Changing weather pattern
Slide 7: FY25 Objectives – What We Had Set for Ourselves
FY25 OBJECTIVES – WHAT WE HAD SET FOR OURSELVES AT THE START Objectives Achievement • Aspiration to grow revenues by double-digit • Segment leading growth of ~8.5%, despite with focus on profitability challenging demand environment Sales & Profitability • EBITDA growth of 17%, margin up 100 bps Y-o-
Slide 8: Q4 FY25 Business Highlights
Q4 FY25 BUSINESS HIGHLIGHTS QUARTERLY GROWTH DRIVERS CHANNEL-WISE GROSS EBITDA & PAT WORKING CAPITAL SALES PERFORMANCE MARGINS & ROCE Witnessed revenue Adjacent categories ~15% growth in retail EBITDA at ₹ 170 NWC days remained momentum with ~9% like womenswear & channel with healthy LTL crores; ~15
Slide 9: Strong Sales Growth Despite Weak Environment
STRONG SALES GROWTH DESPITE WEAK ENVIRONMENT Sales ( ₹ in crores) 1189 • Revenue growth of ~9%, despite muted market environment • Direct channels continued their outperformance o Superior execution in retail resulted in 5.2% LTL leading to ~15% growth along with reduction in discounting. Revenue mi
Slide 10: Leading to Strong Profitability Improvement
LEADING TO STRONG PROFITABILITY IMPROVEMENT EBITDA ( ₹ in crores) PBT and PAT * ( ₹ in crores) 66 170 54 148 25 27 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 PBT PAT* * For continuing business excluding 120 Crs of exceptional DTA impact in Q4 FY25 Improvement in EBITDA margins by ~80 bps Y-o-Y through better c
Slide 11: DTA Charge Explained
DTA CHARGE EXPLAINED • In one of our wholly owned subsidiary, Arvind Lifestyle Brands Limited (ALBL), we had accumulated losses of prior years (during Covid etc.) on which deferred tax asset (DTA) has been created (@ 35%) o Management has decided to move to lower tax regime (~25% tax) instead of the
Slide 12: Channel Mix
CHANNEL MIX Q4 FY24 Q4 FY25 25% 25% 40% 42% 33% 35% Wholesale (MBO + Dept. Stores) Retail Online & Others Q4 FY25 RESULTS 11
Slide 13: FY25 Performance Highlights
FY25 PERFORMANCE HIGHLIGHTS Q4 FY25 RESULTS 12
Slide 14: 4-Year Journey – Consistent Financial Performance Track Record
4-YEAR JOURNEY – CONSISTENT FINANCIAL PERFORMANCE TRACK RECORD 18% CAGR Sales Gross Margin % 830 bps 4620 4259 53.5% 4069 52.2% ( ₹ in crores) 49.2% 2784 45.2% FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 36% CAGR 20%+ 700 637 15. 0% Return on Capital Employed 600 544 14. 0% 16%+ 473 13.8% ( ₹ in crores)
Slide 15: Growth Acceleration Compared to FY24
GROWTH ACCELERATION COMPARED TO FY24 Sales ( ₹ in crores) 4620 • Revenue growth of 8.5%, significantly higher compared to previous year • Double digit growth in retail & 15%+ growth in online channel 4259 • Slower growth in wholesale channels (Dept. stores & MBO) • FY25 net sq. ft. addition stood at
Slide 16: Leading to Continued Profitability Improvement
LEADING TO CONTINUED PROFITABILITY IMPROVEMENT EBITDA ( ₹ in crores) PBT and PAT * ( ₹ in crores) 637 225 164 544 85 50 FY24 FY25 FY24 FY25 PBT PAT* * For continuing business excluding 120 Crs of exceptional DTA impact in Q4 FY25 Improvement in EBITDA margins by 100 bps Y-o-Y aided by favorable chan
Slide 17: Channel Mix
CHANNEL MIX FY24 FY25 27% 28% 42% 43% 31% 29% Wholesale (MBO + Dept. Stores) Retail Online & Others Q4 FY25 RESULTS 16
Slide 18: Continue to Open Marquee EBOs
CONTINUE TO OPEN MARQUEE EBOs Club A, Gurgaon Q4 FY25 RESULTS 17
Slide 19: Continue to Open Marquee EBOs
CONTINUE TO OPEN MARQUEE EBOs Infiniti Malad, Mumbai Q4 FY25 RESULTS 18
Slide 20: Continue to Open Marquee EBOs
CONTINUE TO OPEN MARQUEE EBOs HSR, Bengaluru Q4 FY25 RESULTS 19
Slide 21: Brand Highlights
Q4 FY25 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 22: Brand Highlights
Brand Highlights • Witnessed strong growth momentum during the year with higher market share gains and dominant leadership position in casual lifestyle category across channels; brand touched 2,000 Crs NSV in FY25 • Significant investment in advertising during Q4 helped deliver strong LTL growth • C
Slide 23: Brand Highlights
Brand Highlights • Significant improvement in EBITDA margins and other KPIs • Continued growth agenda with emphasis on product innovation, e.g. premium Italian shirt collection • Arrow NewYork continues to see traction while attracting younger customers • Focus on accelerating EBOs expansion Q4 FY25
Slide 24: Brand Highlights
Brand Highlights • Delivered strong LTL in Q4 along with growth across other channels • Brand witnessed sharp turnaround in H2 FY25 • Well poised to improve financial performance backed by growth & operating leverage over coming quarters Q4 FY25 RESULTS 23
Slide 25: Brand Highlights
Brand Highlights • Strong brand pull for this market leader, coupled with favorable tailwinds around premiumization continue to aid brand’s strong financial performance • Focus on expanding retail & online presence through innovative retail formats Q4 FY25 RESULTS 24
Slide 26: Brand Highlights
Brand Highlights • Premiumization trend helping brand deliver industry leading sell-thru’s and LTL growth • Strong growth & profitability in FY25 despite challenging demand environment Q4 FY25 RESULTS 25
Slide 27: Q4 FY25 - Groupwise Performance
Q4 FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q4 FY25 Q4 FY24 % Q4 FY25 Q4 FY24 % Q4 FY25 Q4 FY24 Growth Growth Power Brands 1189 1094 9% 170 148 15% 14.3% 13.5% Total 1189 1094 9% 170 148 15% 14.3% 13.5% EBITDA margin expansion of ~80 bps aided by higher gross margins & cost c
Slide 28: FY25 - Groupwise Performance
FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % FY25 FY24 % FY25 FY24 % FY25 FY24 Growth Growth Power Brands 4620 4259 8.5% 637 544 17% 13.8% 12.8% Total 4620 4259 8.5% 637 544 17% 13.8% 12.8% Revenue growth acceleration coupled with operational efficiencies led to 100 bps improveme
Slide 29: Q4 & FY25 Results
Q4 & FY25 RESULTS Q4 FY25 RESULTS 28
Slide 30: Q4 FY25 - Performance Snapshot
Q4 FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q4 FY25 Q4 FY24 Revenue from Operations 1189 1094 Other Income 11 13 Total Income 1200 1107 EBITDA 170 148 PBT 66 54 Taxes 139* 13 Minority Interest 21 15 PAT (93) 25 Profit/(loss) from discontinued operations (0) (1) Reported PAT (93) 24 * includes 120
Slide 31: FY25 - Performance Snapshot
FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) FY25 FY24 Revenue from Operations 4620 4259 Other Income 35 34 Total Income 4655 4293 EBITDA 637 544 Exceptional item - (6) PBT 225 164 Taxes 191* 57 Minority Interest 69 56 PAT (34) 50 Profit/(loss) from discontinued operations (1) 31 Reported PAT (36) 81
Slide 32: Balance Sheet as on 31-Mar-2025
BALANCE SHEET AS ON 31-MAR-2025 ( ₹ in crores) Particulars 31-Mar-25 31-Mar-24 Net Worth 1164 1192 Borrowings 390 466 Capital Employed 1554 1658 Inventory 1259 1068 Receivables 729 647 Creditors 1172 936 Net Working Capital 817 779 Net Fixed Asset 319 275 Other Assets 440 635 Discontinued Business (
Slide 33: Efficient Working Capital Management
EFFICIENT WORKING CAPITAL MANAGEMENT ( ₹ in crores) Mar’25 Mar’24 Dec’24 Inventory 1259 1068 1127 Inventory days 91 94 89 Receivables 729 647 639 Debtor days 54 47 54 GWC 1989 1715 1766 GWC days 146 140 143 Payables 1172 936 1139 Creditor days 87 81 84 NWC 817 779 628 NWC days 58 59 59 Note for days
Slide 34: Way Forward
WAY FORWARD Q4 FY25 RESULTS 33
Slide 35: Way Forward
WAY FORWARD AFL Demand environment likely to Focus on profitability Acceleration in retail network improve gradually, likely growth improvement led by operating expansion across brands through uptick compared to FY25 leverage and better channel mix asset light approach Committed to scaling existing
Slide 36: Thank You
ALVIND £ASHIONS THANK YOU