Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q2 FY25 Earnings Presentation
32 slides from Arvind Fashions's earnings presentation, Oct 28, 2024
Slide 1: Exchange filing cover letter
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 October 28, 2024 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept. /
Slide 2: Q2 FY25 Results Presentation
Q2 FY25 RESULTS PRESENTATION Oct | 2024 Q2 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 Q2 Performance Highlights Q2 & H1 FY25 Results Way Forward Q2 FY25 RESULTS 3
Slide 5: Q2 FY25 Performance Highlights
Q2 FY25 PERFORMANCE HIGHLIGHTS Q2 FY25 RESULTS 4
Slide 6: FY25 Objectives – What We Have Set for Ourselves
FY25 OBJECTIVES – WHAT WE HAVE SET FOR OURSELVES Objectives • Aspiration to grow revenues by double-digit with focus on profitability Sales & Profitability • Maintain cost control focus & operating leverage to aid EBITDA & PAT margins expansion • Continued investments in advertisement to drive marke
Slide 7: Market & Economy Update
MARKET & ECONOMY UPDATE Market conditions continue to stay muted, further impacted by adverse weather conditions Casualization trend continues to stay strong across categories Premiumization continues to be key growth lever Demand expected to recover in H2 aided by festive season & strong wedding ca
Slide 8: Q2 FY25 Business Highlights
Q2 FY25 BUSINESS HIGHLIGHTS QUARTERLY GROWTH DRIVERS CHANNEL-WISE GROSS EBITDA WORKING CAPITAL SALES PERFORMANCE MARGINS & PAT Continued momentum Adjacent categories Retail & online Highest ever GWC days remained in revenue with 8.5% like womenswear channel witnessed quarterly EBITDA at stable; inve
Slide 9: Sustained Sales Growth Momentum
SUSTAINED SALES GROWTH MOMENTUM Sales ( ₹ in crores) 1273 • Overall revenue growth of 8.5%; momentum witnessed in Q1 continued • Strong growth in retail & online channels, wholesale channel witnessed tepid growth 1174 • EBO count stood at 954 as of Sep’24, net sq. ft. addition at ~36k Q2 FY24 Q2 FY2
Slide 10: Leading to Strong Profitability Improvement
LEADING TO STRONG PROFITABILITY IMPROVEMENT EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 170 67 52 143 30 22 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 PBT PAT (After minority interest) Improvement in EBITDA margins by 110+ bps Y-o-Y aided by cost control Q2 FY25 RESULTS 9
Slide 11: Growth in H1 Accelerated Compared to FY24
GROWTH IN H1 ACCELERATED COMPARED TO FY24 Sales ( ₹ in crores) 2228 • Overall revenue growth of 9.2%, despite muted market conditions • H1 FY25 net sq. ft. addition stood at ~81k, especially through iconic stores in USPA 2040 H1 FY24 H1 FY25 Q2 FY25 RESULTS 10
Slide 12: Driving Continued Profitability Improvement in H1
DRIVING CONTINUED PROFITABILITY IMPROVEMENT IN H1 EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 90 292 246 66 31 5 H1 FY24 H1 FY25 H1 FY24 H1 FY25 PBT PAT (After minority interest) Improvement in EBITDA margins by ~110 bps Y-o-Y aided by higher gross margin and cost opti
Slide 13: Channel Mix
CHANNEL MIX Q2 FY24 Q2 FY25 27% 30% 37% 37% 36% 33% Wholesale (MBO + Dept. Stores) Retail Online & Others Q2 FY25 RESULTS 12
Slide 14: Continued Progress on Flagship EBOs
CONTINUED PROGRESS ON FLAGSHIP EBOs DB Mall, Bhopal Lulu Mall, Calicut Q2 FY25 RESULTS 13
Slide 15: Continued Progress on Flagship EBOs
CONTINUED PROGRESS ON FLAGSHIP EBOs City Centre, Raipur Q2 FY25 RESULTS 14
Slide 16: Brand Highlights
Q2 FY25 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 17: Brand Highlights
Brand Highlights • Witnessing strong growth momentum in the brand with higher LTL helping cement leadership position in casual lifestyle category across channels; brand poised to cross 2,000 Crs NSV mark soon • Investments in marketing through campaign with Pacho (Maharaja Sawai Padmanabh Singh of J
Slide 18: USPA x Pacho – High decibel marketing campaign
USPA x Pacho – High decibel marketing campaign Q2 FY25 RESULTS 17
Slide 19: Brand Highlights
Brand Highlights • Mega marketing event with Hrithik Roshan – Arrow X GQ • Achieved significant improvement in EBITDA margins through operating leverage • Premiumization drive through ‘1851’ & Italian line delivered higher sell-thru’s • NewYork line helping brand become more young & cool • Continued
Slide 20: Brand Highlights
Brand Highlights • Signed up Orry has new brand ambassador; targeted to add considerable interest amongst Gen Zs • Key KPIs have significantly improved and continue to track positively in SS24 • Positive response across channels; higher retail LTL for renovated stores with fresh identity Q2 FY25 RES
Slide 21: Brand Highlights
Brand Highlights • Premiumization trend coupled with superior customer experience continue to help strengthen brand positioning & business growth • Robust sell-thru’s in SS24 Q2 FY25 RESULTS 20
Slide 22: Brand Highlights
Brand Highlights • Premiumization trend helping brand deliver industry leading sell-thru’s and LTL growth • Strong growth despite challenging consumer demand scenario • New innerwear campaign with Disha Patani Q2 FY25 RESULTS 21
Slide 23: Q2 FY25 - Groupwise Performance
Q2 FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q2 FY25 Q2 FY24 % Q2 FY25 Q2 FY24 % Q2 FY25 Q2 FY24 Growth Growth Power Brands 1273 1174 8.5% 170 143 18.5% 13.3% 12.2% Total 1273 1174 8.5% 170 143 18.5% 13.3% 12.2% EBITDA margin expansion of 110+ bps with stronger cost control No
Slide 24: H1 FY25 - Groupwise Performance
H1 FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % H1 FY25 H1 FY24 % H1 FY25 H1 FY24 % H1 FY25 H1 FY24 Growth Growth Power Brands 2228 2040 9.2% 292 246 18.8% 13.1% 12.1% Total 2228 2040 9.2% 292 246 18.8% 13.1% 12.1% Revenue growth picked up (compared to FY24 levels) aiding ~110 bp
Slide 25: Q2 & H1 FY25 Results
Q2 & H1 FY25 RESULTS Q2 FY25 RESULTS 24
Slide 26: Q2 FY25 - Performance Snapshot
Q2 FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q2 FY25 Q2 FY24 Revenue from Operations 1273 1174 Other Income 7 4 Total Income 1280 1178 EBITDA 170 143 PBT 67 52 Taxes 21 11 Minority Interest 15 15 PAT 30 26 Profit/(loss) from discontinued operations (0) (4) Reported PAT 30 22 * Taxes higher on accou
Slide 27: H1 FY25 - Performance Snapshot
H1 FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) H1 FY25 H1 FY24 Revenue from Operations 2228 2040 Other Income 15 14 Total Income 2243 2054 EBITDA 292 246 PBT 90 66 Taxes 31 30 Minority Interest 28 27 PAT 31 9 Profit/(loss) from discontinued operations 0 (4) Reported PAT 31 5 Q2 FY25 RESULTS 26
Slide 28: Efficient Working Capital Management
EFFICIENT WORKING CAPITAL MANAGEMENT ( ₹ in crores) Sep’24 Sep’23 Jun’24 Inventory 1163 1283 1063 Inventory days 89 93 91 Receivables 815 644 575 Debtor days 53 45 49 GWC 1978 1927 1637 GWC days 141 138 141 Payables 1189 1153 923 Creditor days 82 83 81 NWC 789 774 715 NWC days 60 55 59 Note for days
Slide 29: Balance Sheet as on 30-Sep-2024
BALANCE SHEET AS ON 30-SEP-2024 ( ₹ in crores) Particulars 30-Sep-24 31-Mar-24 Net Worth 1189 1192 Borrowings 446 466 Capital Employed 1635 1658 Inventory 1163 1068 Receivables 815 647 Creditors 1189 936 Net Working Capital 789 779 Net Fixed Asset 295 274 Other Assets 578 636 Discontinued Business (
Slide 30: Way Forward
WAY FORWARD Q2 FY25 RESULTS 29
Slide 31: Way Forward
WAY FORWARD AFL With festival season & strong Continue execution on Focused retail network wedding calendar, hopeful of profitability improvement expansion across brands through continuation of growth through operating leverage & FOFO model momentum cost optimization etc. Decisive focus on scaling e
Slide 32: Thank You
ALVIND £ASHIONS THANK YOU