Arvind Limited · NSE:ARVIND

Arvind — Q4 FY2014-15 Earnings Presentation

24 slides from Arvind's earnings presentation, May 14, 2015

  1. Slide 1: Arvind Limited Performance Review Note Q4 FY 2014-15

    Arvind Limited Performance Review Note Q4 FY 2014-15 14th May 2015, Ahmedabad 1

  2. Slide 2: Agenda

    Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 2

  3. Slide 3: Agenda

    Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 3

  4. Slide 4: Financial Performance: Q4 2014-15

    Financial Performance: Q4 2014-15 Consolidated revenue growth of 8% and PAT growth of 3% Moderate growth in revenues... ...as well as margins Rev, Rs Cr EBITDA, Rs Cr 8% 2,500 300 239 260 200 8% 2,041 100 2,000 1,882 0 FY2013-14 FY2014-15 1,500 PAT*, Rs Cr 3% 100 94 97 1,000 50 500 0 FY2013-14 FY201

  5. Slide 5: Business Highlights: Q4 2014-15

    Business Highlights: Q4 2014-15 Moderate top-line growth with moderated bottom-line due to higher tax 2014-15 2013-14 Change Revenue from Operations 2,041 1,882 8% Key highlights RawMaterials 847 852 Project Expenses 18 45 Revenue growth of 8% achieved due to Employees' Emoluments 203 169 • 17% top-

  6. Slide 6: Financial Performance: FY 2014-15

    Financial Performance: FY 2014-15 Revenue growth of 14% and PAT growth of 7% Strong revenue growth Strong improvement in operating profits Rev, Rs Cr EBITDA, Rs Cr 9,000 1,500 11% 14% 1,013 7,851 1,000 911 7,500 6,862 500 6,000 0 FY2013-14 FY2014-15 4,500 PAT*, Rs Cr 7% 370 395 3,000 400 300 1,500 2

  7. Slide 7: Business Highlights: FY 2014-15

    Business Highlights: FY 2014-15 Strong top-line & bottom-line growth Rs in Cr 2014-15 2013-14 Change Key highlights Revenue from Operations 7,851 6,862 14% Raw Material Consumed 2,292 2,179 Revenue growth of 14% achieved due to Purchase of Finished Goods 1,404 1,154 • 23% top-line growth of Brands &

  8. Slide 8: Margin moderated in both key business segments in FY 2014-15

    Margin moderated in both key business segments in FY 2014-15 Quarterly margins lower than LY due to Forex loss and MegaMart Performance Textiles Brands & Retail MM 2.8%, EBITDA % EBITDA % Other 6.5% 20 6 5.2% 5.2% FY 17.8% 17.4% MM 1.3%, comparison 4 Other 6.2% 15 Vs LY 2 10 0 FY 2013-14 FY 2014-15

  9. Slide 9: Consolidated Balance Sheet, as at Mar 31st 2015

    Consolidated Balance Sheet, as at Mar 31st 2015 As at 31st 31st Mar'15 Mar'14 Shareholders' Fund Share Capital 258 258 Reserves and Surplus 2545 2325 Non Current Liabilities 1495 1437 Shortterm Borrowings 1701 1449 Current Liabilities 1943 1870 Minority Interest 35 24 Total 7976 7363 Assets Fixed As

  10. Slide 10: Key Financial Ratios

    Key Financial Ratios 2010-11 2011-12 2012-13 2013-14 2014-15 EPS 6.50 9.48 9.63 14.4 15.3 Debt / Equity 1.31 1.00 1.11 1.16 1.25 Debt / EBIDTA 3.7 3.0 3.2 3.0 3.1 ROCE 10.5% 13.1% 11.9% 13.8% 14.1% ROE 8.4% 12.0% 11.1% 14.0% 14.5% Revenue Growth 25% 20% 7% 30% 14% 10

  11. Slide 11: Agenda

    Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 11

  12. Slide 12: Standalone Financial Performance Q4 14-15

    Standlone Financial Performance Q4 14’15 Q4 Rs in Crs 2014-15 2013-14 Change Revenue from Operations 1,349 1,284 5% Raw Material Consumed 505 546 Purchase of Finished Goods 35 19 RawMaterials 540 565 Project Expenses 0 9 Employees' Emoluments 146 128 Others 423 372 (Increase) / Decrease in Stock 36

  13. Slide 13: Standalone Financial Performance FY2014-15

    Standalone Financial Performance FY2014-15 Rs in Cr 2014-15 2013-14 Change Revenue from Operations 5,225 4,775 9% RawMaterials 2,272 2,174 Project Expenses 8 15 Employees' Emoluments 571 509 Others 1,652 1,354 (Increase) / Decrease in Stock -94 -66 Foreign Exchange Loss /(Gain) -13 14 EBIDTA 827 776

  14. Slide 14: Standalone Balance Sheet, as on Mar 31st 2015

    Standalone Balance Sheet, as on Mar 31st 2015 As at 31st 31st Mar'15 Mar'14 Shareholders' Fund Share Capital 258 258 Reserves and Surplus 2666 2378 Non Current Liabilities 1282 1233 Shortterm Borrowings 1332 1095 Current Liabilities 1114 1070 Minority Interest Total 6652 6034 Assets Fixed Assets 269

  15. Slide 15: Agenda

    Agenda • Financial Performance: Consolidated • Financial Performance: Standalone • Business Analysis 15

  16. Slide 16: Textiles Business: Revenue Mix in FY2014-15

    Textiles Business: Revenue Mix in FY2014-15 Rev, Rs Cr Rev. Growth % 6% 5,500 4,977 33% 4,683 275 Knits 5,000 10% Textile revenue grew by 6% 207 360 Voiles 4,500 326 6% 712 Garments • Led by 8% growth Woven 4,000 672 fabrics 3,500 8% • 6% growth in garments 3,000 1,944 Wovens 1,797 • 2% growth in De

  17. Slide 17: Volume growth: Wovens volume growth at 8%: Denim at 1%

    Volume growth: Wovens volume growth at 8% : Denim at 1% Denim Wovens (Shirting & Khaki) Volume, Mn Mtrs -8% Volume, Mn Mtrs 7% 30 28.4 26.0 30 26.3 28.2 Q4 comparison 20 20 Vs LY 10 10 0 0 Q4 2013-14 Q4 2014-15 Q4 2013-14 Q4 2014-15 Volume, Mn Mtrs Volume, Mn Mtrs +1% 8% 150 150 FY 105.0 106.1 103.3

  18. Slide 18: Key Parameters: FY2014-15 – Textiles

    Key Parameters: FY2014-15 – Textiles Denim Woven Q4 14-15 Q4 13-14 Q4 14-15 Q4 13-14 Exports(Mn Mtrs) 12 12 8 7 Domestic(Mn Mtrs) 14 16 20 19 Avg Prices 180 179 166 171 Major Component Cotton Cost (Rs/Kg) 95 114 Denim Woven 14-15 13-14 14-15 13-14 Exports(Mn Mtrs) 47 45 25 22 Domestic(Mn Mtrs) 60 60

  19. Slide 19: Brands & Retail Business grew topline by 17% in Q4 2014-15

    Brands & Retail Business grew topline by 17% in Q4 2014-15 Strong revenue growth Key highlights • Revenue growth of 17% achieved due to Rev, Rs Cr – 25% revenue growth in Brands /other formats 600 17% 587 – Flat revenue in MegaMart Retail 501 • Like to Like growth 500 – 8.2% LTL growth in Brands – 2

  20. Slide 20: Brands & Retail Business grew topline by 23% in FY2014-15

    Brands & Retail Business grew topline by 23% in FY2014-15 Strong revenue growth Key highlights • Revenue growth of 23% achieved due to Rev, Rs Cr – 31% revenue growth in Brands/Other formats 2,500 23% 2,361 – 2% revenue growth in MegaMart Retail, as business went through a repositioning and model ch

  21. Slide 21: Performance of Power Brands

    Performance of Power Brands Revenues Rs Cr Revenues Rs Cr +24% +25% 400 363 1,500 1,334 Power brands 292 1,068 300 1,000 200 100 500 0 0 Q4 2013-14 Q4 2014-15 FY 2013-14 FY 2014-15 EBITDA Rs Cr EBITDA % EBITDA Rs Cr EBITDA % 60 12.6% 11.6% 15 200 11.7% 11.4% 15 40 10 150 10 100 20 37 42 5 125 152 5

  22. Slide 22: Brands & Retail Business – Distribution

    Brands & Retail Business – Distribution Q3 2014-15 Q4 2014-15 Particulars Stores Sq Ft Stores Sq Ft Brands 800 7,89,753 811 7,56,615 MM 145 8,42,078 140 8,32,896 Total 945 16,31,831 951 15,89,511 No of KA 923 989 Exclusive Counters • Sales Increase in Key Account Counters: Growth of 30% in FY2014-15

  23. Slide 23: Outlook

    Outlook • Revenue Growth likely to be between 15-17% primarily driven by volume growth in brands & retail business and Garments manufacturing : – Revenue Growth in Textiles 9-11% – Revenue Growth in Brands & Retail at about 24-26% • Weighted Margins likely to up marginally on account of margin impro

  24. Slide 24: Thank You!

    Thank You!

Arvind — Q4 FY2014-15 Earnings Presentation on 6ix