Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q1 FY23 Earnings Presentation
16 slides from Arvind Fashions's earnings presentation, August 2022
Slide 1: Arvind Fashions Limited Q1 FY23 Results Presentation
Arvind Fashions Limited Q1 FY23 Results Presentation Aug 2022
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
Q1 FY23 Performance Highlights Agenda Q1 FY23 Results with IndAS Way Forward
Slide 4: FY23 Objectives – What we have set for ourselves
FY23 Objectives – What we have set for ourselves Targets & Objectives • Amongst industry leading growth rates (over FY22) 1. Sales & Profitability • Expansion in operating margins with significant growth in PAT 2. Inventory • Further improvement in inventory turns to >4x Omni-channel • Build scalabl
Slide 5: Q1 FY23 Business Highlights
Q1 FY23 Business Highlights Growing category Record sales quarter Power Brands extensions • 2.9x sales growth Y-o-Y; 40% • Double-digit EBITDA margin (pre- • 3.6x growth in footwear business growth (vs. pre-COVID; Q1 FY20) IndAS) trajectory continued in USPA (vs. pre-COVID) & Tommy Hilfiger • Retail
Slide 6: The biggest ever Q1 in terms of sales
The biggest ever Q1 in terms of sales Sales (Rs. Crs) 920 • Delivered best ever Q1 results through sharper retail execution in the first 658 steady-state quarter after 2 years • Recorded highest ever full price sell- thru’s across brands with significant improvement over Spring Summer’19 (SS’19; pre
Slide 7: Leading to record profitability in the quarter
Leading to record profitability in the quarter EBITDA (Rs. Crs) PBT (Rs. Crs) 94 13 Q1 FY22 Q1 FY23 62 Q1 FY20 Q1 FY22 Q1 FY23 -25 -120 Gross margin improvement of 640 bps (Y-o-Y) to 49.4% aided sharp jump in profitability 7
Slide 8: USPA: Investment in brand marketing campaigns and adjacencies
USPA : Investment in brand marketing campaigns and adjacencies 8
Slide 9: Tommy Hilfiger: Investing behind brands to drive premiumization
Tommy Hilfiger : Investing behind brands to drive premiumization 9
Slide 10: Q1 FY23 - Groupwise Performance
Q1 FY23 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) % Growth Q1 FY23 Q1 FY22 Q1 FY20 Q1 FY23 Q1 FY22 vs Q1 FY20 Power 749 262 521 44% 83 (12) Brands Specialty Emerging Retail Brands 171 57 137 25% 11 (13) Total 920 319 658 40% 94 (25) Note: Power Brands – US Polo Assn., Tommy Hilfiger,
Slide 11: Continued focus on inventory and working capital control
Continued focus on inventory and working capital control Figures in Rs Crs. June’22 June’21 Change Mar’22 Inventory 1013 879 134 965 Receivables 549 554 (5) 572 • Strong retail mix and better collections led to reduction in debtors GWC 1562 1433 129 1537 Payables 996 1071 (62) 1048 NWC 566 362 204 4
Slide 12: Agenda
Q1 FY23 Performance Highlights Agenda Q1 FY23 Results with IndAS Way Forward
Slide 13: Q1 FY23 - Performance Snapshot
Q1 FY23 - Performance Snapshot Reported (Rs Crs.) Q1 FY23 Q1 FY22 Revenue from Operations 920 319 Other Income 2 21 Total Income 922 340 EBITDA 94 (25) PBT 13 (120) Discontinued operations - (63) Minority Interest 9 (6) PAT (0) (177) 13
Slide 14: Agenda
Q1 FY23 Performance Highlights Agenda Q1 FY23 Results with IndAS Way Forward
Slide 15: Way forward
Way forward Short term • Revenue momentum to stay strong led by better quality on-time launch of AW’22 coupled with continued growth across online & other channels • Profitability to improve further by better full price sell-thru’s, operating leverage etc. • Continued focus on inventory turns and wo
Slide 16: Thank You
Thank You