Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY23 Earnings Presentation
26 slides from Arvind Fashions's earnings presentation, Feb 14, 2023
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 February 14, 2023 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept.
Slide 2: Q3 FY23 Results Presentation
Q3 FY23 RESULTS PRESENTATION February | 2023 Q3 FY23 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 Q3 FY23 Performance Q3 & YTD FY23 Results Way Forward Highlights Q3 FY23 RESULTS 3
Slide 5: Q3 FY23 Performance Highlights
Q3 FY23 PERFORMANCE HIGHLIGHTS Q3 FY23 RESULTS 4
Slide 6: Market & Economy Update
MARKET & ECONOMY UPDATE Consumption and retail demand continued to stay stable in big cities compared to smaller towns With work from office gaining momentum, categories like shirts, jeans and occasion-wear see strong demand Premiumization continues to witness strong demand and remains a key differe
Slide 7: FY23 Targets & Objectives – What We Have Set For Ourselves
FY23 TARGETS & OBJECTIVES – WHAT WE HAVE SET FOR OURSELVES Sales & Profitability Inventory Omni-channel business model • Amongst industry leading growth rates (over • Further improvement in inventory turns • Build scalable omni-channel model with FY22) to >4x higher contribution of direct-to-consume
Slide 8: Q3 FY23 Business Highlights
Q3 FY23 BUSINESS HIGHLIGHTS QUARTERLY POWER CHANNEL-WISE GROWTH DRIVERS GROSS EBITDA & SALES BRANDS PERFORMANCE MARGINS ROCE 17% sales Double digit EBITDA ~25% growth in retail 45%+ growth each in Industry leading full 29% growth in growth Y-o-Y; margin channel Y-o-Y and footwear and price sell-thru
Slide 9: AFL Posted Best Ever Q3 Sales
AFL POSTED BEST EVER Q3 Sales ( ₹ in crores) • Recorded highest quarterly sales in Q3 led by strong affinity for our brands registering industry leading 12%+ retail LTL growth 1179 • Strong performance in the department stores channel • Sharp execution on retail experience, investment in brand build
Slide 10: Resulting in Strong Profitability
RESULTING IN STRONG PROFITABILITY EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 136 34 106 22 8 6 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 PBT PAT (After minority interest) 110 bps improvement in EBITDA margins on account of higher gross margins and operating leverage Q3 FY23 RES
Slide 11: Brand Highlights
Q3 FY23 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 12: Brand Highlights
Brand Highlights • Achieved milestone of NSV • Much loved brand campaign 1500+ Crs in YTD Jan’23 with Indian celebrity, Bollywood actor Arjun Rampal • Strong retail LTL coupled with resulting in strong brand recall high growth in department & loyalty stores resulted in significant reduction in disco
Slide 13: Brand Highlights
Brand Highlights • Brand turnaround completed; • Strong momentum led by sales growth of ~60% in YTD refreshed retail identity, Q3 premium and ceremonial designs in formal line and • Continued double-digit LTL larger assortment of ‘Arrow and positive EBITDA for three Sports’ as well as logoization co
Slide 14: Brand Highlights
Brand Highlights • Strategic partnership with • Fueling of growth through Flipkart group gives brand a adjacent categories unique advantage (footwear, innerwear and kids wear) in the medium term • Consumer connect with sharper focus on young • Investing in omni capabilities millennials / Gen Z’s wit
Slide 15: Brand Highlights
Brand Highlights • Continued leadership in super-premium segment, with double digit EBITDA • Superior customer retail experience along with high quality product designs across 100+ stores in India • Growth opportunity in recently launched ‘Tommy tailored’ line; tied-up with Guru Randhawa as category
Slide 16: Brand Highlights
Brand Highlights • Strong traction in super • Market leadership of bridge to premium category aiding luxury segment in jeans, Tees brand’s robust performance and innerwear segments with industry leading full • Continued strong partnership price sell-thru, retail LTL and with brand ambassador - Disha
Slide 17: Brand Highlights
Brand Highlights • Leading player in the prestige • Strengthening of multiple segment with presence in 26 categories – fragrances, EBOs across key malls in the haircare & skin care through country launch of brands like Hanz De Fuko, MAC and Too Faced • Strong retail LTL growth during the quarter; fr
Slide 18: Q3 FY23 - Groupwise Performance
Q3 FY23 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q3 FY23 Q3 FY22 % Growth Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Power Brands 952 806 18% 122 93 12.9% 11.5% Emerging Brands 227 202 12% 14 13 6.2% 6.4% Total 1179 1008 17% 136 106 11.6% 10.5% Strong growth in power brands coupled with oper
Slide 19: YTD FY23 - Groupwise Performance
YTD FY23 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % YTD FY23 YTD FY22 % Growth YTD FY23 YTD FY22 YTD FY23 YTD FY22 Power Brands 2699 1743 55% 337 148 12.5% 8.5% Emerging Brands 582 397 47% 30 5 5.2% 1.2% Total 3281 2139 53% 367 153 11.2% 7.2% Robust 50%+ sales growth aiding 140% inc
Slide 20: Working Capital Efficiency Leading to Strong Cash Flow Generation
WORKING CAPITAL EFFICIENCY LEADING TO STRONG CASH FLOW GENERATION ( ₹ in crores) Dec’22 Dec’21 Sep’22 Inventory 1041 985 1221 Inventory days 88 88 86 Receivables 572 522 686 Debtor days 44 47 52 GWC 1613 1506 1908 GWC days 132 135 138 Payables 1038 1088 1342 Creditor days 80 99 102 NWC 575 418 566 N
Slide 21: Q3 & YTD FY23 Results
Q3 & YTD FY23 RESULTS Q3 FY23 RESULTS 20
Slide 22: Q3 FY23 - Performance Snapshot
Q3 FY23 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q3 FY23 Q3 FY22 Revenue from Operations 1179 1008 Other Income 16 9 Total Income 1195 1017 EBITDA 136 106 PBT 34 22 Taxes 12 4 Minority Interest 14 11 PAT 8 6 Strong improvement in financial performance across all parameters Q3 FY23 RESULTS 21
Slide 23: YTD FY23 - Performance Snapshot
YTD FY23 - PERFORMANCE SNAPSHOT ( ₹ in crores) YTD FY23 YTD FY22 Revenue from Operations 3281 2139 Other Income 38 46 Total Income 3319 2185 EBITDA 367 153 PBT 92 (120) Taxes 34 7 Minority Interest 33 9 PAT 26 (268) Sharp turnaround in bottom line performance Q3 FY23 RESULTS 22
Slide 24: Way Forward
WAY FORWARD Q3 FY23 RESULTS 23
Slide 25: Way Forward
WAY FORWARD AFL Continue growth momentum powered by portfolio Expansion of retail network across brands through of strong brands, aided by upcoming festival the franchisee model period, wedding season & SS’23 launch Focus on improving profitability further through Strong balance sheet with improved
Slide 26: Thank You
ALVIND £ASHIONS THANK YOU