Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q4 FY22 Earnings Presentation
24 slides from Arvind Fashions's earnings presentation, May 27, 2022
Slide 1: Outcome of Board Meeting cover letter to exchanges
ARVIND FASHIONS LIMITED A MEMBER OF T l-I E L ALB I IA ! GROUP Corporate Office : Du Pa re Trinty, 8" Floor, 17, M.G. Road , J3e nga luru - 560 001 Te l : 9 1-8 0-4 155 060 I , Fax : 9 1-8 0-4 155 065 1 We bsite: http www.a rvindfashi ons.com May 27, 2022 BSE Li mited National Stock Exchange of Indi
Slide 2: Cover letter continuation
ARVIND FASHIONS LIMITED A MEMB ER OF Tl IE LALB l 1/\ 1 GROUP Corporate Office.: Du Pare Trint y, 8"' r luo r, 17, M.G . Road , Bengaluru - 560 00 I Tel : 9 1-80--t 155 060 I, fa x : 9 1-80-4 155 065 1 Website: http www.arvin cln1shio ns.co111 The meeting of the Board of Directors commenced at 11 :3
Slide 3: Q4 FY22 Results Presentation
Arvind Fashions Limited Q4 FY22 Results Presentation May 2022
Slide 4: 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 5: Agenda
Q4 and FY22 Performance Highlights Agenda Q4 and FY22 Results with IndAS Way Forward 3
Slide 6: FY22 Priorities – What we had set out for ourselves
FY22 Priorities – What we had set out for ourselves at the start of the year Targets Achievement • Robust operational performance with 30%+ • Absolute focus on our high conviction brands sales growth in H2 FY22 despite Covid impact Portfolio 1. • Exit of loss making and marginal brands; financial •
Slide 7: FY22 Priorities – What we had set out for ourselves
FY22 Priorities – What we had set out for ourselves at the start of the year Targets Achievement • Net debt at <400 Crs as of Mar’22 Re-capitalisation of • Reduction in debt to ~600 Crs by year-end 4. the business & de- • Significant strengthening of balance sheet • Adequately capitalizing balance s
Slide 8: Strong financial performance in H2 FY22 despite Covid 3rd wave impact
Strong financial performance in H2 FY22 despite Covid 3rd wave impact Sales (Rs. Crs) 1925 32% 1458 • Significant focus on core brands along with fresh brand retail identities drove higher like-to-like growth • Strong multi-channel play • Aggressive retail expansion across brands with addition of 15
Slide 9: Leading to significant improvement in all operational parameters
Leading to significant improvement in all operational parameters EBITDA (Rs. Crs) PBT (Rs. Crs) 200 32 30% 154 H2 FY21 H2 FY22 H2 FY21 H2 FY22 -43 Gross margin improvement of 180 bps to 45.3% leading to improvement in profitability 7
Slide 10: Posts strong FY22 performance after setback due to pandemic
Posts strong FY22 performance after setback due to pandemic Sales (Rs. Crs) EBITDA (Rs. Crs) 3056 247 60% 131% 1912 107 FY21 FY22 FY21 FY22 8 Revenues crossed pre-Covid levels with sharp turnaround in profitability
Slide 11: H2 FY22 - Groupwise Performance
H2 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) % Growth H2 FY22 H2 FY21 % Growth H2 FY22 H2 FY21 vs H2 FY20 Power 1538 1201 28% 34% 180 150 Brands Specialty Emerging Retail Brands 386 257 50% 36% 20 4 Total 1925 1458 32% 34% 200 154 Note: Power Brands – US Polo Assn., Tommy Hilfige
Slide 12: FY22 - Groupwise Performance
FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) % Recovery FY22 FY21 % Growth FY22 FY21 vs FY20 Power 2475 1529 62% 104% 236 116 Brands Specialty Emerging Retail Brands 581 384 51% 100% 12 (9) Total 3056 1912 60% 103% 247 107 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying M
Slide 13: Strong working capital controls yielding better inventory turns and cash flow
Strong working capital controls yielding better inventory turns and cash flow Figures in Rs Crs. Mar’22 Mar’21 Change Dec’21 Inventory 965 900 65 985 Receivables 572 626 (54) 522 • Sharp working capital management through quick actions to largely offset Covid-led GWC 1537 1525 11 1506 impact Payable
Slide 14: Q4 FY22 Highlights
Q4 FY22 Highlights 12
Slide 15: Q4 FY22 Business Highlights
Q4 FY22 Business Highlights Strong revenue Power Brands Profitability performance • 34% sales growth Y-o-Y; 59% growth • Continued double-digit EBITDA • 36%* growth in EBITDA to Rs. 94 (vs. pre-COVID) margin (pre-IndAS) trajectory in crores; despite normalization of USPA & Tommy Hilfiger costs & Cov
Slide 16: USPA: Opened the largest store with new retail identity in South market
AfVInD +ASWIOn s USPA : Opened the largest store with new retail identity in South market u. S. POLO A.'SSN. 1 SINCE 1890 14
Slide 17: Q4 FY22 - Groupwise Performance
Q4 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) % Growth Q4 FY22 Q4 FY21 % Growth Q4 FY22 Q4 FY21 vs Q4 FY20 Power 732 555 32% 50% 87 85 Brands Specialty Emerging Retail Brands 185 129 43% 75% 7 4 Total 917 685 34% 54% 94 89 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying
Slide 18: Agenda
Q4 and FY22 Performance Highlights Agenda Q4 and FY22 Results with IndAS Way Forward 16
Slide 19: Q4 FY22 - Performance Snapshot
Q4 FY22 - Performance Snapshot Reported (Rs Crs.) Q4 FY22 Q4 FY21 % growth Revenue from Operations 917 685 34% Other Income 21 21 (2%) Total Income 938 706 32% EBITDA* 91 67 36% Reported EBITDA 94 89 6% Finance Costs 23 41 (44%) Depreciation and amortisation 61 62 (1%) PBT from continuing operations
Slide 20: FY22 - Performance Snapshot
FY22 - Performance Snapshot Reported (Rs Crs.) FY22 FY21 % growth Revenue from Operations 3056 1912 60% Other Income 65 109 (39%) Total Income 3122 2021 54% EBITDA 247 107 131% Finance Costs 124 180 (31%) Depreciation and amortisation 233 238 (2%) Exceptional items - (45) - PBT from continuing opera
Slide 21: Balance Sheet
Particulars (Rs Cr.) Mar’22 Mar’21 Net Worth* 996 734 Borrowings 502 903 Capital Employed 1498 1637 Inventory 965 900 Receivables 572 626 Creditors 1048 918 Balance Sheet Net Working Capital 489 608 Net Fixed Asset 273 381 Discontinued Operations Assets 5 81 Other Assets 731 567 Capital Employed 149
Slide 22: Agenda
Q4 and FY22 Performance Highlights Agenda Q4 and FY22 Results with IndAS Way Forward 20
Slide 23: Way forward
Way forward FY23 Priorities • Strong revenue growth coupled with improvement in profitability & ROCE • Significant scaling up of adjacencies across brands – footwear, kidswear, innerwear and women’s wear • Acceleration in store network expansion across brands & markets by opening 200+ stores • Inves
Slide 24: Thank You
Thank You