Arvind Limited · NSE:ARVIND
Arvind — Q3 FY2015 Earnings Presentation
21 slides from Arvind's earnings presentation, Feb 5, 2015
Slide 1: Performance Review Note Q3 FY2014-15
Performance Review Note Q3 FY2014-15 5th February 2015, Ahmedabad
Slide 2: Agenda
Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 2
Slide 3: Agenda
Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 3
Slide 4: Financial Performance: Q3 2014-15
Financial Performance: Q3 2014-15 Consolidated Revenue growth of 17% and EBITDA growth of 16% Strong growth in revenues... ...with steady weighted margins Rev, Rs Cr EBITDA, Rs Cr 16% 2,500 300 288 249 200 17% 2,074 100 2,000 1,772 0 Q3 13-14 Q3 14-15 1,500 PAT*, Rs Cr 150 9% 103 112 1,000 100 50 50
Slide 5: Business Highlights: Q3 2014-15
Business Highlights: Q3 2014-15 Strong top-line growth with moderated PAT due to higher tax out go. Q3 Rs Cr Key highlights 2014-15 2013-14 Change Revenue from Operations 2,074 1,772 17% RawMaterials 847 821 Revenue growth of 17% achieved due to Project Expenses 18 17 • 22% top-line growth in Brands
Slide 6: Business Highlights: 9M 2014-15
Business Highlights: 9M 2014-15 Strong top-line growth with moderated bottom-line 9M Rs Cr 2014-15 2013-14 Change Revenue from Operations 5,811 4,980 17% RawMaterials 2,849 2,481 Project Expenses 53 57 Employees' Emoluments 600 510 Others 1,831 1,472 (Increase) / Decrease in Stock -272 -228 Foreign
Slide 7: B & R Revenue growth moderate and Margin impacted; Textile growth in line
B & R Revenue growth moderate and Margin impacted due to weak festive season: Textile growth in line with expectation Brands & Retail Textiles Revenue, Rs Cr Revenue, Rs Cr 9% 9% volume 1,000 22% 1,500 1,275 growth in Woven 1,173 Revenue, 661 & 10% Volume 544 1,000 growth in Denim Q3 Vs LY 500 500 0
Slide 8: Consolidated Balance Sheet, as at Dec 31st 2014
Consolidated Balance Sheet, as at Dec 31st 2014 Rs Crs As at 31st 30th Dec'14 Sept'14 Shareholders' Fund Share Capital 258 258 Reserves and Surplus 2433 2328 Share application Money pending allotment 0 0 Non Current Liabilities 1517 1462 Shortterm Borrowings 1828 1767 Current Liabilities 1827 1981 M
Slide 9: Key Financial Ratios
Key Financial Ratios 2013-14 Q1 14-15 Q2 14-15 Q3 14-15 9M 14-15 EPS 14.4 3.5 3.7 4.3 11.4 Debt / Equity 1.16 1.28 1.34 1.34 1.34 Debt / EBIDTA 3.0 3.4 3.2 3.0 3.3 ROCE 13.5% 13.7% 14.5% 15.6% 14.0% ROE 14.0% 14.3% 14.9% 16.6% 14.8% Revenue Growth 30% 17% 14% 17% 17% Current Ratio 2.3 2.1 2.3 2.6 2.
Slide 10: Agenda
Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 10
Slide 11: Standalone Financial Performance Q3 14-15
Standalone Financial Performance Q3 14-15 Q3 Rs in Crs 2014-15 2013-14 Change Revenue from Operations 1,330 1,205 10% RawMaterials 563 553 Project Expenses 2 2 Employees' Emoluments 146 128 Others 432 343 (Increase) / Decrease in Stock -32 -19 Foreign Exchange Loss /(Gain) -2 -3 EBIDTA 222 201 11% M
Slide 12: Balance Sheet, as on 31st Dec 2014
Balance Sheet, as on 31st Dec 2014 As at 31st 30th Dec'14 Sept'14 Shareholders' Fund Share Capital 258 258 Reserves and Surplus 2538 2441 Share application Money pending allotment 0 0 Non Current Liabilities 1253 1257 Shortterm Borrowings 1435 1371 Current Liabilities 972 1001 Minority Interest Tota
Slide 13: Agenda
Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 13
Slide 14: Textiles Business: Revenue Mix in 2014-15 Q3
Textiles Business: Revenue Mix in 2014-15 Q3 Rev, Rs Cr Rev. Growth % 9% 1,400 1,275 71 Knits 1,173 21% 1,200 58 75 Voiles Textile revenue grew by 9% 73 3% 186 Garments 4% • 8% growth in Woven 1,000 179 fabrics 800 12% • 4% growth in garments 526 Wovens 471 • 12% growth in Denim 600 • 3% growth on a
Slide 15: Volume growth: Denim and Wovens
Volume growth: Denim volumes growth at 10%, while Wovens achieved 9% volume growth in Q3 14-15 Denim Wovens (Shirting & Khaki) Volume, Mn Mtrs Volume, Mn Mtrs 9% +10% 29.8 30 26.8 30 27.3 24.2 Q3 comparison 20 20 Vs LY 10 10 0 0 Q3 13-14 Q3 14-15 Q3 13-14 Q3 14-15 Volume, Mn Mtrs Volume, Mn Mtrs +4%
Slide 16: Key Parameters: FY2014-15 – Textiles
Key Parameters: FY2014-15 – Textiles Denim Woven Q3 14'15 Q3 13'14 Q3 14'15 Q3 13'14 Exports (Mn Mtrs) 11 9 7 6 Domestic (Mn Mtrs) 15 16 23 21 Avg Prices (Rs / Mtr) 182 178 170 168 Major Components Cotton Q3 14'15 Q3 13'14 Cost (Rs / kg) 104 114 16
Slide 17: Brands & Retail – Financial Performance: Q3 FY15
Brands & Retail – Financial Performance: Q3 FY15 Revenue Growth of 22% despite subdued festive season Strong revenue growth Key highlights • Revenue growth of 22% achieved due to Revenue, Rs Cr 31% revenue growth in Brands /other formats 22% 800 661 3% revenue de-growth in Mega-Mart Retail 600 5
Slide 18: Performance of Power Brands
Performance of Power Brands Q3 FY15 Vs Q3 FY14 YTD FY15 Vs YTD FY14 Revenues Rs Cr Revenues Rs Cr +25% +26% Power brands 400 360 1,000 978 288 776 200 500 0 0 Q3 FY14 Q3 FY15 YTD FY14 YTD FY15 EBITDA Rs Cr EBITDA % EBITDA Rs Cr EBITDA % 12.8% 13.4% 60 15 120 11.4% 11.5% 15 10 90 10 30 48 60 112 37 5
Slide 19: Brands & Retail Business – Distribution
Brands & Retail Business – Distribution Q4 2013-14 Q1 2014-15** Q2 2014-15** Q3 2014-15** Particulars # Stores Sq ft # Stores Sq ft # Stores Sq ft # Stores Sq Ft Brands 698 717,236 741 7,54,529 761 765,450 800 7,89,753 MM 166 744,785 158 7,96,467 146 806,143 145 8,42,078 Total 864 1462021 899 15,50,
Slide 20: Outlook for FY2014-15
Outlook for FY2014-15 • Revenue growth expected to be 14-15% – Sales prices of textile products to fall in Q4 in line with fall in cotton/yarn prices • International demand for textiles strong: Indian retail demand very sluggish due to failed festive season • Cotton prices, which witnessed sharp cor
Slide 21: Thank You
Thank You