Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q2 FY22 Earnings Presentation
17 slides from Arvind Fashions's earnings presentation, November 2021
Slide 1: Q2 FY22 Results Presentation
Arvind Fashions Limited Q2 FY22 Results Presentation November 2021
Slide 2: Agenda
Q2 FY22 Performance Highlights Agenda Q2 FY22 Results with IndAS Way Forward 2
Slide 3: Q2 FY22 Highlights
Q2 FY22 Highlights 1 Sales : Strong growth of 2.13x over Q2 FY21; 90%+ recovery pre-COVID (Q2 FY20) Power Brands : Grew by ~2.45x leading to significant improvement in EBITDA; USPA back to double digit margins (pre-IndAS) 2 EBITDA : Rs. 72 Crs compared to Rs. 14 Crs loss in Q2 FY21 Turned cash break
Slide 4: Higher sales growth led to significant improvement in profitability
Higher sales growth led to significant improvement in profitability Sales (Rs. Crs) EBITDA (Rs. Crs) 812 72 Sales recovery at ~100% in Aug+Sep’21 vs. pre-COVID 382 Q2 FY21 Q2 FY22 -14 Q2 FY21 Q2 FY22 4 Sales recovery at 90%+ pre-COVID (Q2 FY20) * Continuing Business
Slide 5: EBOs witnessed ~90% recovery in Aug & Sep'21 compared to pre-COVID
EBOs witnessed ~90% recovery in Aug & Sep’21 compared to pre-COVID Stores Dept. Stores 93% FY21 FY22 83% FY21 FY22 118% 61% 45% 48% 56% 28% 43% 29% 13% 5% July Aug Sep July Aug Sep Current year & last year sales as % of same months in FY20 * Continuing Business 5
Slide 6: Continues strong momentum in online channel
Continues strong momentum in online channel Revenue over same period Key Drivers Omni-channel Q2 FY20 x • Omni-linkage of 150+ stores in Q2 taking total count to 750+ Order fulfilment • 15-20% of store sales continue to get fulfilled through omni- channel Q2 FY21 1.2x SMU strategy • Specially
Slide 7: Q2 FY22 - Groupwise Performance
Q2 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) Q2 FY22 Q2 FY21 % Growth Q2 FY22 Q2 FY21 Power Brands 674 276 144% 67 (6) Specialty Emerging Retail Brands 138 106 30% 5 (8) Total 812 382 113% 72 (14) Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow Emergi
Slide 8: H1 FY22 - Groupwise Performance
H1 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) H1 FY22 H1 FY21 % Growth H1 FY22 H1 FY21 Power Brands 936 329 185% 55 (35) Specialty Emerging Retail Brands 195 125 56% (8) (12) Total 1131 454 149% 47 (47) Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow E
Slide 9: Sharper focus on working capital management
Sharper focus on working capital management Figures in Rs Crs. • Lower inventory due to tighter Sep’21 Sep’20 Change June’21 controls coupled with Unlimited transaction Inventory 969 1152 (183) 1015 • Strong footfalls in Aug & Sep’21 resulted in improvement in Receivables 639 636 3 578 inventory tur
Slide 10: Debt continues to trend lower
Debt continues to trend lower 1097 976 943 913 843 • Proceeds from preferential allotment utilized to reduce debt further as on date Sep'20 Dec'20 Mar'21 June'21 Sep'21 Gross debt (INR Crs) Debt to be lower by ~350 Crs by Mar’22 on Y-o-Y basis 10
Slide 11: Agenda
Q2 FY22 Performance Highlights Agenda Q2 FY22 Results with IndAS Way Forward 11
Slide 12: Q2 FY22 - Performance Snapshot
Q2 FY22 - Performance Snapshot Reported (Rs Crs.) Q2 FY22 Q2 FY21 % growth Revenue from Operations 812 382 113% Other Income 16 24 (34%) Total Income 828 406 104% EBITDA 72 (14) - • Turned cash break-even for continuing business PBT before exceptional items (22) (119) - Exceptional items - (45) - Di
Slide 13: H1 FY22 - Performance Snapshot
H1 FY22 - Performance Snapshot Reported (Rs Crs.) H1 FY22 H1 FY21 % growth Revenue from Operations 1131 454 149% Other Income 37 82 (55%) Total Income 1168 536 118% EBITDA 47 (47) - PBT before exceptional items (142) (268) - Exceptional items - (45) - Discontinued operations (133) (112) - Current Ta
Slide 14: Balance Sheet As On 30.09.2021
Particulars (in Rs Cr.) 30.09.21 31.03.21 30.09.20 Net Worth 743 591 652 Borrowings 843 903 1058 Capital Employed 1,586 1,495 1,710 Inventory 948 900 1018 Receivables 622 626 576 Balance Sheet Creditors 1092 932 1053 As On Net Working Capital 477 594 542 30.09.2021 Net Fixed Asset 297 381 422 Other
Slide 15: Agenda
Q2 FY22 Performance Highlights Agenda Q2 FY22 Results with IndAS Way Forward 15
Slide 16: Way forward
Way forward Short term • Expects robust business momentum to continue aided by high-teens LTL growth (over pre-COVID) witnessed in festive period in Oct’21, leading to significantly improved profitability in H2 FY22 • Exit of discontinued businesses completed; no losses from Q3 onwards • 150+ stores
Slide 17: Thank You
Thank You