Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q2 FY21 Earnings Presentation
39 slides from Arvind Fashions's earnings presentation, Nov 12, 2020
Slide 1: Outcome of Board Meeting letter to exchanges
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporak Oilii:e: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bcnguluru 560 001 Tel : 91-80-4155 0601 , Fax : 91-80-4155 0651 Website : http://www.arvind-fashions.com November 12, 2020 BSE Limited National Stock Exchange of India Ltd. Listing Dept
Slide 2: Board meeting outcome letter (continued)
AR.VIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Curpurale Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel: 91-80-4155 0601, Fax: 91-80-4155 0651 Website: http://www.arvind-fashions.com 2. A copy of the press release being issued by the Company. 3. Investor Presentat
Slide 3: Annexure-1: Appointment of Shailesh Chaturvedi
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel: 91-80-4155 0601 , Fax: 91-80-4155 0651 Website: http://www.arvind-fashions.com ANNEXURE-1 Details required under Regulation 30 of the SEBI LODR Regulation Parti
Slide 4: Independent Auditor's Review Report (Consolidated)
SO RAB S. ENGINEER & CO. (Regd.) CHARTERED ACCOUNTANTS TELEPHONE : +91 79 29700466 : +91 79 48006782 EMAIL : sseahm@sseco.in 804, SAKAR-IX, sseahm@hotmail.com BESIDES OLD RBI , WEB : www.sseco.in ASHRAM ROAD, AHMEDABAD-380 009 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FIN
Slide 5: Auditor's Review Report (continued)
· SORAB S. ENGINEER & CO. (Regd.) 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the
Slide 6: Consolidated Unaudited Financial Results
ARVTND FASHIONS LIMITED A MDINI Of'TRE l.ALIU IAI CROUP c.,......Offlor.Du-T~-. rf""'-. n . MG.Rood.~-~OUJ Td. 9 1 .-0-t f..!SMG I .,,.... S\ indfahicwll. 00IIII Sbtemenl,af Un•IU:llta:f Coualld•tad Flnan,cial a.utta fM th• 04.l.artllr •NI tha Half YMr l!nd4d september ,a, 2020 (Rs. In °""5 - pe,- s
Slide 7: Consolidated Statement of Assets and Liabilities
AR VIND FASHlONS LIMlTED A MEMBER Of 111E IALBIIAI GROUP CCKJNlnalt Office: Du Pan: Trirtiiy, a• Floor, I 7, M.O. Ro.I, 11mp1..., - 560 001 Td: 91 ~-4155~1 W'lli'W'.m"i.nd fll&hiDtl.f..COtll L Stablmant Jtf ~ l d a t . d Unaud- Awts ■ nd U■ bilitjef lb ,n Crol'f!S M■ rch 11, 2020 Audited I. Non-curr
Slide 8: Consolidated Statement of Cash Flows
ARV lND FASl-llONS LIMlTED A MDIBER OF THE LALIHAJ GROUP corpo..... otlia,: Du Pan:Triniry, s• FlOO<, 17, M.G. Read, llalpluru- 560 001 Td: 91-II0-41550601 . . . .--vindfashioos.com r CoMOlldated statwnent of cash F-s for th■ half vear ended Sel>tamber 30 '2020 ' /Rs in Croresl ] H<llf Year ended Ha
Slide 9: Notes to the Consolidated Financial Results
AR.VINO · ASHIONS LIMfTED A MEMHR 01' TIit LALBHAI GROUP Corporaie Offla:: Du Pare Trioil)', II"' Floor. 17. M.G. Rood, B.,ni;llluru - 560 00 I Tel: 91-M--41550601 www.an,iodlilsboons.com Notes to the Consolidated Financial Results: 1 The above consolidated ftnanclal results have been prepared In ac
Slide 10: Independent Auditor's Review Report (Standalone)
SORAB S. ENGINEER & CO. (Regd.) CHARTERED ACCOUNTANTS TELEPHONE : +91 79 29700466 EMAIL : +91 79 48006782 :sseahm@sseco.in sseahm@hotmail.com 00 804, SAKAR-IX, BESIDES OLD RBI, WEB : www.sseco.in ASHRAM ROAD, AHMEDABAD-380 009 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDLAONE FINAN
Slide 11: Standalone Financial Results
AR VIND FASHIONS LIMITED ,\ MJi:Mti:llO,TIII Ul&IIAI t:■ntr. C.,,0,.1<0fllar: Du PorcTrinil)', r° Floor, 17, MG Raod, llmplwu- 560001 Tt"91 -I0-41SS ll601 \\>WW.an-indfaahionl Q)ffl Star.ment of unaudited Standalone Flnanda,I Results fo, the Quartar and the Hall Yur Ended sept 30, 2020 (Rs. In Cro=
Slide 12: Standalone Statement of Assets and Liabilities
AR VIND FASHlONS LIMITED A MEMBER or THE IALBHAI GROUP Corponolc Ofrice: Du Pare Trinity, 8'° Floor, 17, MO Rood, Benpluru - S60 001 Tel: 91-80-41550601 wv.w,carll'indfastuons..com Unaudlte.d standalone Statement of Assets and Liabilities Rs In Crores September 30, 2020 Mardi 31, 2020 Unaudited Audi
Slide 13: Standalone Statement of Cash Flows
ARVIND FASHlONS LlMlTED A ME.'1111£R OF Tm'. LALBRAI GROUP Corponle Oflb, Du Pan: Trinity,&"' Floor. 17, M.G. Road, B<ngaluru-560 00 I Tel: 91 ~ lSS 0601 \VW\\',arvindfashions.CMJ r Standalone Statement of Cash Flows for the half Year ended September 30 2020 ' CRsln Crores Half Year ended Half Year
Slide 14: Notes to the Standalone Financial Results
ARVIND FASID:ONS LIMITED A Ml:MBER OF' TH[ LALBHAI GROL'P Corporate Off"ict: Du Pare Trinity. gm Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel: 91 -80-4155 0601 www.ai-vindfashions.com Notes to the Standalone Financial Results: 1 The above standalone financial results have been prepared in accordan
Slide 15: Press Release: Appointment of Shailesh Chaturvedi as MD and CEO
SUOIHSV:t OUIAJV Press Release Arvind Fashions Limited announces appointment of Shailesh Chaturvedi as Managing Director and CEO National, November 12, 2020 – Arvind Fashions Limited (AFL), India's leading fashion denim and premium casual wear company, today named Shailesh Chaturvedi as the Managing
Slide 16: Press Release: Shailesh Chaturvedi profile and About AFL
SUOIHSV:t OUIAJV A proven leader in the textile and apparel space with a total career that spans 28 years, Shailesh has launched and developed some of the biggest brands in Indian retail including Tommy Hilfiger, Calvin Klein, Arrow, Louis Philippe, Van Heusen and Allen Solly. Before his long stint
Slide 17: Press Release: Business recovery and balance sheet strengthened
J\fVInD +ASWIOns PRESS RELEASE Arvind Fashions continues to make progress on business recovery; balance sheet strengthened through reduction of debt & working capital Bengaluru, November 12, 2020: Arvind Fashions Limited (AFL), India’s leading casual and denim player, has declared its financial resu
Slide 18: About AFL, contact and disclaimer
J\fVInD +ASWIOns About AFL Arvind Fashions Ltd is India's no. 1 casual and denim player, a lifestyle powerhouse with a strong portfolio of fashion brands catering to consumers across the sub-categories and price points. With a host of renowned brands, both international and indigenous, like US Polo
Slide 19: Q2 FY21 Results Presentation
Arvind Fashions Limited Q2 FY21 Results Presentation Nov 2020 0
Slide 20: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 1
Slide 21: 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 22: Sales Recovery
Sales Recovery Overall 41% 75% 50% 46% 39% 12% Q1 Q2 Jul Aug Sep Oct 3
Slide 23: 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 24: 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 25: 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 26: 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 27: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 8
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Agenda
Q2 Performance Highlights Q2 & H1 Results Agenda Future Outlook 14
Slide 34: 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 35: Exit FY21 - Well Positioned for Value Creation
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 36: Annexures
Annexures
Slide 37: 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 38: 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 39: Thank You
Thank You