ARVIND FASHION Research Tear Sheet Q3 FY2022

Arvind Limited is an Indian textile manufacturer and the flagship company of the Lalbhai Group. The company was incorporated in 1931. It has its headquarter in Ahmedabad, India, The products include cotton shirting, denim, knits and bottom weight (khaki) fabrics. Arvind Fashion is a major player of fashion in the India market. It has both global and international presence. It deals with renowned brands, both international and indigenous, like US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora, it has presence across lifestyle brands and prestige beauty.  

Key Financial Highlights

Rs. Crore	Q3 FY22	Q3 FY21	Y-o-Y Growth
Revenues	1008	773	30%
EBITDA	106	65	62%
PBT (continuing operations)	22	-29
PAT including discontinued operations	6	-68

Revenues grew by 30% to Rs. 1,008 Crs in Q3 FY 2022.

Power brands revenues grew by 25% with an EBITDA margin increased by 150 bps on Y-o-Y basis.

Strong sales growth, higher gross margin and cost control led to EBITDA growth of 62% to Rs. 106 Crs.

EBITDA margins increased by 200 bps .

Net debt stood at Rs. 430 Crores.

Positive cash flow from operations.

Outlook

Growth expected from retail and online channel.

Expected to open 150+ stores by FY22.

Expected to drive better working capital by focusing on debtor & inventory turnover.

Conference Call Highlights

Management Updates

Omni-linkage of 50+ stores in Q3 taking the total count to 800+.

1.3 Mn+ orders processed from own D2C warehouse.

Online channel stabilizing at ~25-30% of overall revenues.

Business Updates

Significant scale up in innerwear, footwear and kids wear.

Retail network expanded in smaller towns through the franchisee model.

To focus on higher ROCE.