Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q4 FY23 Earnings Presentation
30 slides from Arvind Fashions's earnings presentation, May 30, 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 May 30, 2023 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept. / Dep
Slide 2: Q4 FY23 Results Presentation
Q4 FY23 RESULTS PRESENTATION May | 2023 Q4 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 Q4 & FY23 Performance Q4 & FY23 Results Way Forward Highlights Q4 FY23 RESULTS 3
Slide 5: Q4 FY23 Performance Highlights
Q4 FY23 PERFORMANCE HIGHLIGHTS Q4 FY23 RESULTS 4
Slide 6: Market & Economy Update
MARKET & ECONOMY UPDATE Delayed onset of winter this year helped drive demand of winter wear at attractive sell-thru’s in Jan’23 Premiumization across brands emerges as a key differentiator Expansion across adjacent categories continues to be an attractive growth lever Retail consumption and discret
Slide 7: FY23 Targets & Objectives – What We Had Set for Ourselves
FY23 TARGETS & OBJECTIVES – WHAT WE HAD SET FOR OURSELVES AT THE START OF YEAR Targets Achievement • Amongst industry leading growth rates (over FY22) • Added 1,350+ Crs in sales; 45% growth Y-o-Y Sales & Profitability • Expansion in operating margins with significant • ~400 Crs swing in EBITDA (FY2
Slide 8: Q4 FY23 Business Highlights
Q4 FY23 BUSINESS HIGHLIGHTS QUARTERLY POWER CHANNEL-WISE GROWTH DRIVERS EBITDA WORKING CAPITAL SALES BRANDS PERFORMANCE 24% sales Continued Double 25%+ growth in retail 50%+ growth in 47% growth in EBITDA 22 days growth Y-o-Y digit EBITDA margins channel Y-o-Y footwear and ~25% to ₹ 138 crores (Y-o-
Slide 9: AFL Posted Another Quarter of Strong Performance
AFL POSTED ANOTHER QUARTER OF STRONG PERFORMANCE Sales ( ₹ in crores) • Witnessed 24% sales growth led by robust winter wear business aided by late onset of winter and good EOSS 1140 • Strong performance in retail, MBO and department stores channel • Sharper retail rigour in SS’23 helped deliver 17%
Slide 10: Continuing with Improved Profitability
CONTINUING WITH IMPROVED PROFITABILITY EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 36 138 94 10 11 1 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 PBT PAT (After minority interest) 190 bps improvement in EBITDA margins on account of lower discounting, higher sell-thru’s and operatin
Slide 11: Q4 FY23 - Groupwise Performance
Q4 FY23 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q4 FY23 Q4 FY22 % Growth Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Power Brands 924 732 26% 122 87 13.1% 11.9% Emerging Brands 216 185 17% 17 7 7.9% 3.7% Total 1140 917 24% 138 94 12.1% 10.3% Strong growth in power brands leading to margins h
Slide 12: FY23 Performance Highlights
FY23 PERFORMANCE HIGHLIGHTS Q4 FY23 RESULTS 11
Slide 13: Strong Scale Up with ~4500 Crores Sales
STRONG SCALE UP WITH ~4500 CRORES SALES Sales ( ₹ in crores) • Industry leading growth of 45% led by multi-channel performance with focus on retail execution 4421 • Retail channel mix higher by 400+ bps Y-o-Y to 43% delivering strong LTL and record sell-thru’s • Robust bounce back in offline channel
Slide 14: Resulting in Strong Profitability Metrics
RESULTING IN STRONG PROFITABILITY METRICS EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 128 505 37 247 -110 -267 FY22 FY23 FY22 FY23 PBT PAT (After minority interest) 330 bps EBITDA margins improvement led by operational efficiencies, sell-thru improvement and scale leve
Slide 15: FY23 - Groupwise Performance
FY23 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % FY23 FY22 % Growth FY23 FY22 FY23 FY22 Power Brands 3623 2475 46% 458 236 12.6% 9.5% Emerging Brands 798 581 37% 47 12 5.9% 2.0% Total 4421 3056 45% 505 247 11.4% 8.1% Strong sales growth resulting in >2X growth in EBITDA; margin impro
Slide 16: Brand Highlights
Q4 FY23 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 17: Brand Highlights
Brand Highlights • Annual growth of 600+ Crs NSV • Focused investment in bottom in FY23 wear leading to strong growth Y-o-Y • Continued domination in casual lifestyle category; significant • Adjacent category expansion brand momentum in its journey continues to positively aid sales towards 2,000+ Cr
Slide 18: Brand Highlights
Brand Highlights • Exceptional swing in sales • Strong momentum led by growth & EBITDA profitability refreshed retail identity, led to completion of brand premium and ceremonial turnaround designs in formal line and larger assortment of ‘Arrow • Rollout of super premium Sports’ as well as logoizatio
Slide 19: Brand Highlights
Brand Highlights • Re-energizing the brand • Improvement in full price sell- through new logo, design and thru’s in SS’23 despite brand positioning slowdown in the market • Launched new retail identity • Fueling of growth through in Bengaluru adjacent categories (footwear, innerwear and kids • Build
Slide 20: Brand Highlights
Brand Highlights • With its market leadership position in super-premium segment, growth in sales by nearly 50% in FY23 with high profitability • Superior customer retail experience along with high quality product designs across 100+ stores in India • Growth opportunity in recently launched ‘Tommy ta
Slide 21: Brand Highlights
Brand Highlights • Strong traction in super • Market leadership in 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 22: 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 country • Delivers industry leading sales • Unique engagement with density per sq. ft. in malls women consumers through
Slide 23: Q4 & FY23 Results
Q4 & FY23 RESULTS Q4 FY23 RESULTS 22
Slide 24: Q4 FY23 - Performance Snapshot
Q4 FY23 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q4 FY23 Q4 FY22 Revenue from Operations 1140 917 Other Income 14 21 Total Income 1154 938 EBITDA 138 94 PBT 36 10 Taxes 6 (12) Minority Interest 18 22 PAT 11 1 Consistent financial performance across all parameters Q4 FY23 RESULTS 23
Slide 25: FY23 - Performance Snapshot
FY23 - PERFORMANCE SNAPSHOT ( ₹ in crores) FY23 FY22 Revenue from Operations 4421 3056 Other Income 53 67 Total Income 4474 3123 EBITDA 505 247 PBT 128 (110) Taxes 40 (6) Minority Interest 50 31 PAT 37 (267) Strong improvement in profitability leading to sharp turnaround in bottom line performance Q
Slide 26: Balance Sheet as on 31-Mar-2023
BALANCE SHEET AS ON 31-MAR-2023 ( ₹ in crores) Particulars 31-Mar-23 31-Mar-22 Net Worth* 1092 996 Borrowings 598 502 Capital Employed 1690 1498 Inventory 1131 965 Receivables 560 572 Creditors 1020 1048 Net Working Capital 671 489 Net Fixed Asset 259 273 Other Assets 760 731 Discontinued Business -
Slide 27: Working Capital Efficiency Leading to Strong Cash Flow Generation
WORKING CAPITAL EFFICIENCY LEADING TO STRONG CASH FLOW GENERATION ( ₹ in crores) Mar’23 Mar’22 Dec’22 Inventory 1131 965 1041 Inventory days 87 97 88 Receivables 560 572 572 Debtor days 45 57 44 GWC 1691 1537 1613 GWC days 132 154 132 Payables 1020 1048 1038 Creditor days 82 104 80 NWC 671 489 575 N
Slide 28: Way Forward
WAY FORWARD Q4 FY23 RESULTS 27
Slide 29: Way Forward
WAY FORWARD AFL Demand environment remains very soft; expect Momentum on retail network expansion across trends to improve gradually by festival season brands through the franchisee model Continue decisive focus on scaling existing brands Strengthening balance sheet through FCF through cash accruals
Slide 30: Thank You
ALVIND £ASHIONS THANK YOU