Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY25 Earnings Presentation
29 slides from Arvind Fashions's earnings presentation, February 2025
Slide 1: Q3 FY25 Results Presentation
Q3 FY25 RESULTS PRESENTATION Feb | 2025 Q3 FY25 RESULTS
Slide 2: 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 3: Agenda
AGENDA 01 02 03 Q3 Performance Highlights Q3 & YTD FY25 Results Way Forward Q3 FY25 RESULTS 3
Slide 4: Q3 FY25 Performance Highlights
Q3 FY25 PERFORMANCE HIGHLIGHTS Q3 FY25 RESULTS 4
Slide 5: 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 6: Market & Economy Update
MARKET & ECONOMY UPDATE Overall market conditions continue to stay muted Casualization trend continues to gain relevance Premiumization emerging as a dominant theme and key differentiator Timely onset of winters and strong wedding calendar aided stable demand scenario Q3 FY25 RESULTS 6
Slide 7: Q3 FY25 Business Highlights
Q3 FY25 BUSINESS HIGHLIGHTS QUARTERLY GROWTH DRIVERS CHANNEL-WISE GROSS EBITDA & PAT WORKING CAPITAL SALES PERFORMANCE MARGINS & ROCE Continued revenue Adjacent categories Retail channel witnessed Clocked highest ever GWC days remained momentum with ~7% like womenswear strong growth of ~15% quarterl
Slide 8: Continued Sales Growth Momentum Despite Challenging Conditions
CONTINUED SALES GROWTH MOMENTUM DESPITE CHALLENGING CONDITIONS Sales ( ₹ in crores) • Revenue growth of ~7%, despite muted market 1203 environment • Superior execution in retail resulting in 11% LTL leading to strong channel growth; revenue mix higher by 3% 1125 • ~20% growth in online B2C channel,
Slide 9: Strong Profitability Improvement: EBITDA, PBT and PAT
LEADING TO STRONG PROFITABILITY IMPROVEMENT EBITDA ( ₹ in crores) PBT and PAT * ( ₹ in crores) 174 69 44 150 28 16 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 PBT PAT* * For continuing business Improvement in EBITDA margins by 110+ bps Y-o-Y through better channel mix, lower discounting and continued cost optim
Slide 10: Channel Mix
CHANNEL MIX Q3 FY24 Q3 FY25 27% 27% 44% 47% 26% 29% Wholesale (MBO + Dept. Stores) Retail Online & Others Q3 FY25 RESULTS 10
Slide 11: Growth Acceleration in YTD Compared to Last Year
GROWTH ACCELERATION IN YTD COMPARED TO LAST YEAR Sales ( ₹ in crores) 3431 • Revenue growth of 8.4%, significantly higher compared to previous year • Healthy double digit growth in retail & online channels 3165 • Slower growth in wholesale channel • YTD FY25 net sq. ft. addition stood at ~76k YTD FY
Slide 12: Continued Profitability Improvement During YTD
DRIVING CONTINUED PROFITABILITY IMPROVEMENT DURING YTD EBITDA ( ₹ in crores) PBT and PAT * ( ₹ in crores) 467 159 110 396 59 25 YTD FY24 YTD FY25 YTD FY24 YTD FY25 PBT PAT* * For continuing business Improvement in EBITDA margins by 110 bps Y-o-Y aided by favorable channel mix and control over discou
Slide 13: Channel Mix (YTD)
CHANNEL MIX YTD FY24 YTD FY25 28% 29% 42% 43% 30% 28% Wholesale (MBO + Dept. Stores) Retail Online & Others Q3 FY25 RESULTS 13
Slide 14: Continue to Open Marquee EBOs
CONTINUE TO OPEN MARQUEE EBOs Magneto, Raipur Hilite, Thrissur Q3 FY25 RESULTS 14
Slide 15: Brand Highlights
Q3 FY25 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 16: Brand Highlights
Brand Highlights • Continuing strong growth momentum in the brand with a dominating leadership position in casual lifestyle category across channels; brand poised to cross 2,000 Crs NSV mark soon • 360-degree advertising campaign (USPA x Pacho) including very elevated collab collection during festiv
Slide 17: Brand Highlights
Brand Highlights • Strong wedding calendar helped brand’s performance • Continued journey of improving EBITDA margins through operating leverage • Product innovation through premium Italian line driving differentiation • NewYork line helping brand become more young & cool • Focus on accelerating EBO
Slide 18: Brand Highlights
Brand Highlights • Marketing campaign ‘Flying Machine x Orry’ created strong buzz amongst Gen Zs • Won prestigious industry accolade at IFF for the most admired celebrity endorsement marketing campaign of the year • Brand delivered significantly improved financial results coupled with robust perform
Slide 19: Brand Highlights
Brand Highlights • Premiumization trend aiding brand’s performance delivering superior sales growth & profitability • Robust sell-thru’s in AW24 Q3 FY25 RESULTS 19
Slide 20: Brand Highlights
Brand Highlights • Premiumization trend helping brand deliver industry leading sell-thru’s and LTL growth • Strong growth helped deliver profitability improvement through operating leverage Q3 FY25 RESULTS 20
Slide 21: Q3 FY25 - Groupwise Performance
Q3 FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q3 FY25 Q3 FY24 % Q3 FY25 Q3 FY24 % Q3 FY25 Q3 FY24 Growth Growth Power Brands 1203 1125 7% 174 150 16% 14.5% 13.3% Total 1203 1125 7% 174 150 16% 14.5% 13.3% EBITDA margin expansion of 110+ bps through richer channel mix, lower dis
Slide 22: YTD FY25 - Groupwise Performance
YTD FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % YTD YTD % YTD YTD % YTD YTD FY25 FY24 Growth FY25 FY24 Growth FY25 FY24 Power Brands 3431 3165 8.4% 467 396 17.8% 13.6% 12.5% Total 3431 3165 8.4% 467 396 17.8% 13.6% 12.5% Revenue growth acceleration (vs last year) coupled with op
Slide 23: Q3 & YTD FY25 Results
Q3 & YTD FY25 RESULTS Q3 FY25 RESULTS 23
Slide 24: Q3 FY25 - Performance Snapshot
Q3 FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q3 FY25 Q3 FY24 Revenue from Operations 1203 1125 Other Income 9 7 Total Income 1211 1132 EBITDA 174 150 Exceptional item - (6) PBT 69 44 Taxes 21 14 Minority Interest 20 14 PAT 28 16 Profit/(loss) from discontinued operations (1) 35 Reported PAT 27 51 Q
Slide 25: YTD FY25 - Performance Snapshot
YTD FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) YTD FY25 YTD FY24 Revenue from Operations 3431 3165 Other Income 23 21 Total Income 3454 3186 EBITDA 467 396 Exceptional item - (6) PBT 159 110 Taxes 52 44 Minority Interest 48 41 PAT 59 25 Profit/(loss) from discontinued operations (1) 31 Reported PAT
Slide 26: Efficient Working Capital Management
EFFICIENT WORKING CAPITAL MANAGEMENT ( ₹ in crores) Dec’24 Dec’23 Sep’24 Inventory 1127 1068 1163 Inventory days 89 94 89 Receivables 639 547 815 Debtor days 54 45 53 GWC 1766 1615 1978 GWC days 143 139 142 Payables 1139 968 1189 Creditor days 84 82 82 NWC 628 647 789 NWC days 59 57 60 Note for days
Slide 27: Way Forward
WAY FORWARD Q3 FY25 RESULTS 27
Slide 28: Way Forward
WAY FORWARD AFL With execution on new season Continue execution on higher Focused retail network launch (SS’25), hopeful of growth profitability through better expansion across brands through momentum (vs Q3 levels) channel mix, operating leverage & FOFO model cost optimization etc. Decisive focus o
Slide 29: Thank You
ALVIND £ASHIONS THANK YOU