Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q2 FY22 Earnings Presentation
36 slides from Arvind Fashions's earnings presentation, Nov 13, 2021
Slide 1: Outcome of Board Meeting cover letter
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G. Road, Bengaluru – 560 001 Tel: 91 -80-4155 0601 www.arvindfashions.com November 13, 2021 BSE Limited National Stock Exchange of India Ltd. Listing Dept. / Dept. of Corporate Services Listing
Slide 2: Annexure-I Director re-appointment details
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G. Road, Bengaluru – 560 001 Tel: 91 -80-4155 0601 www.arvindfashions.com ANNEXURE-I Details required under Regulation 30 of the SEBI LODR Regulation Particulars Mr. Nilesh Dhirajlal Shah Reason
Slide 3: Independent Auditor's Review Report - Standalone
SORAB S . ENGINEER & CO. DELOITTE HASKINS & SELLS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Arvind Fashions Limited 1. We have reviewed the accompanying Statem ent of Standalone Unaudited Financial Results of Arvind Fashions Li
Slide 4: Auditor's Review Report (continued)
SORAB S . ENGINEER & CO. DELOITTE HASKINS & SELLS 6. The comparative financ ial information of the Company for the quarter and half year ended September 30, 2020, for the year ended March 31, 2021 and for t he quarter ended June 30, 2021 included in this Statement had been reviewed/audited by one of
Slide 5: Standalone Unaudited Financial Results
ARVIND FASHIONS LIMITED A MEMB ER OF THE LALBI-IAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel : 9 1-80-4155 060 I, Fax : 91-80-4 155 065 1 Website : hllp://www.arvindfashions.com Sta tement o f S tandalone Unaudited Financia l Resu lts for the quarter
Slide 6: Standalone Unaudited Balance Sheet
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel : 91-80-4155 0601 , Fax: 91 -80-4155 0651 Website : http://www.arvindfashions.com St a nd alo ne Una udited Bala nce Sheet (Rs on Crores As at As a t Septe mber
Slide 7: Standalone Statement of Cash Flows
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel: 9 1-80-4155 0601, Fax: 9 1-80-4155 0651 Website : http://www.arvindfashions.com I Sta nda lon e Una udite d St ate m e nt o f Cas h Flows for th e half v ear e
Slide 8: Notes to standalone results
ARVIND FASHIONS LIMITED A MEMBER OF Tl IE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel : 91-80-4155 0601, Fax: 9 1-80-4155 065 1 Website : http://www.arvindfashions.com Notes: 1 The above standalone unaudited financial results have been prepared
Slide 9: Notes: Preferential Issue
ARVIND FASHIONS LIMITED A MEMBER OF TIIE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bcngaluru - 560 001 Tel: 9 1-80-4155 0601 , Fax : 9 1-80-4155 0651 Website : http://www.arvinclfashions.com There is no deviation in use of proceeds from the objects stated in the Offe
Slide 10: Independent Auditor's Review Report - Consolidated
SORAB 5. ENGINEER & Co. D ELOITTE HASKINS & SELLS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Arvind Fashions Limited 1. We have r eviewed the accompanying Statement of Consolidated Unaudited Financial Results of Arvind Fashion
Slide 11: Auditor's Review Report (continued)
SORAB S. ENGINEER & Co. DELOITTE HASKINS & SELLS 7. The financial information of 4 subsidiaries included in t he consolidated unaudited financial results, whose interim financia l information reflect total assets of Rs. 1,113.04 crores, total revenues of Rs. 348.86 crores and Rs. 495.42 crores for t
Slide 12: Annexure: List of Subsidiaries
SORAB S. ENGINEER & Co. DELOITTE HASKINS & SELLS Annexure to Independent Auditor's Review Report The Parent 1. Arvind Fashions Limited List of Subsidiaries 1. Arvind Lifestyle Brands Limited 2. Arvind Beauty Brands Retail Private Limited 3. PVH Arvind Fashion Private Limited 4. Arvind Youth Brands P
Slide 13: Consolidated Unaudited Financial Results
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBI-IAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel : 91-80-4155 060 1, Fax: 91-80-4 155 0651 Website : http://www.arvindfashions.com S t a t e m e nt o l Co n s olidate d Una udite d Finan cia l Results for t
Slide 14: Consolidated Unaudited Balance Sheet
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel: 91-80-4155 0601, Fax: 91-80-4155 0651 Website : http://www.arvindfashions.com Consol idated Unnudited Balance Sheet ( Rs in Cr ores As at As at September 30, 20
Slide 15: Consolidated Statement of Cash Flows
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel: 9 1-80-4155 0601 , Fax: 91 -80-4155 0651 Website : http://www.arvindfashions.com Consolidate d U11audi1e d Slaleme nt of Ca s h Flows for t he half year e nded
Slide 16: Notes to consolidated results
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 001 Tel: 91 -80-41 55 0601 , Fax: 91 -80-4155 065 1 Website : http://www.arvindfashions.com Notes: The above consolidated unaudited financial results have been prepared
Slide 17: Notes: Discontinued operations
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Pare Trinity, 8th Floor, 17, M.G. Road, Bengaluru - 560 00 I Tel: 9 1-80-4155 0601, Fax: 91-80-4155 0651 Website : http://www.arvindfashions.com 11 During the year ended March 31, 2021, Arvind Lifestyle Brands Limited (ALBL),
Slide 18: Press Release: Sales growth of 113%
SUOIHSV:t OUIAJV PRESS RELEASE Sales growth of 113% leading to significantly improved profitability; 90%+ sales recovery over pre-COVID Bengaluru, Nov 13, 2021: Arvind Fashions Limited (AFL), India’s leading casual and denim player, has declared its financial results for the second quarter and half
Slide 19: About AFL and Disclaimer
SUOIHSV:t OUIAJV About AFL Arvind Fashions Ltd is India's no. 1 casual and denim player, a lifestyle powerhouse with a strong portfolio of fashion brands catering to consumers across the sub-categories and price points. With a host of renowned brands, both international and indigenous, like US Polo
Slide 20: Q2 FY22 Results Presentation
Arvind Fashions Limited Q2 FY22 Results Presentation November 2021
Slide 21: Agenda
Q2 FY22 Performance Highlights .................................. 'I ~ '-~ ~ -(§)11 Agenda Q2 FY22 Results with IndAS . . . . . . . . . . . . . . . . . •·t~ Way Forward """"""""""""""""""""""""""""""""""""""""""""""""." (@J 2
Slide 22: Q2 FY22 Highlights
AfVInD +ASWIOn s 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
Slide 23: Higher sales growth led to significant improvement in profitability
AfVInD +ASWIOn s 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 24: EBOs witnessed ~90% recovery in Aug & Sep'21 compared to pre-COVID
AfVInD +ASWIOn s 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 25: Continues strong momentum in online channel
AfVInD +ASWIOn s 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 stra
Slide 26: Q2 FY22 - Groupwise Performance
AfVInD +ASWIOn s Q2 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) I I Q2 FY22 Q2 FY21 % Growth Q2 FY22 Q2 FY21 Power Brands __ ._ _ _ _ _ _ _ __I_I_ 674 276 144% 67 (6) ~ _ ._ _ _ _ _ _ _ --I _I_ Specialty Emerging Retail Brands 138 106 30% 5 (8) -------------------------------------
Slide 27: H1 FY22 - Groupwise Performance
AfVInD +ASWIOn s H1 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) I I H1 FY22 H1 FY21 % Growth H1 FY22 H1 FY21 Power Brands __ ._ _ _ _ _ _ _ __I_I_ 936 329 185% 55 (35) ~ _ ._ _ _ _ _ _ _ --I _I_ Specialty Emerging Retail Brands 195 125 56% (8) (12) ---------------------------------
Slide 28: Sharper focus on working capital management
AfVInD +ASWIOn s 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 I I • Strong footfalls in Aug & Sep’21 resulted in improvement in Receivables 639 63
Slide 29: Debt continues to trend lower
AfVInD +ASWIOn s 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 30: Agenda
Q2 FY22 Performance Highlights .................................. 'I --~ -§1 ~ -1§)11 Agenda Q2 FY22 Results with IndAS . . . . . . . . . . . . . . . . . •·t~ Way Forward """""""""""""""""""""""""""""""""""""""""""""""""" ~ 11
Slide 31: Q2 FY22 - Performance Snapshot
AfVInD +ASWIOn s 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
Slide 32: H1 FY22 - Performance Snapshot
AfVInD +ASWIOn s 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) (
Slide 33: Balance Sheet As On 30.09.2021
AfVInD +ASWIOn s 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 2
Slide 34: Agenda
Q2 FY22 Performance Highlights 1 ..:§il ··································[I • Agenda . . . . . . . . . . . . . . . . . •·t~ Q2 FY22 Results with IndAS Way Forward ................................................................................................... ~ 15
Slide 35: 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 36: Thank You
Thank You