Bengaluru, February 5, 2025 – Arvind Fashions Limited (NSE: ARVINDFASN, BSE: 542484), a leading player in India's casual and denim wear segment, has announced its financial results for the third quarter (Q3 FY25) and nine months ended December 31, 2024.
Key Financial Highlights (₹ in Crores)
| Metric | Q3 FY25 | Q3 FY24 | YoY Growth | YTD FY25 | YTD FY24 | YoY Growth |
|---|---|---|---|---|---|---|
| Revenue | 1,203 | 1,125 | 6.9% | 3,431 | 3,165 | 8.4% |
| EBITDA | 174 | 150 | 16.1% | 467 | 396 | 17.8% |
| PBT | 69 | 44 | 55.5% | 159 | 110 | 44.0% |
| PAT (Continuing) | 28 | 16 | 70.9% | 59 | 25 | 132.5% |
Operational Highlights
- Revenue Growth: The company posted a 7% YoY increase in revenue, reaching ₹1,203 crore for Q3 FY25. Growth was driven by strong retail and online B2C channel sales, while wholesale remained flat.
- Retail Performance: Retail LTL growth stood at 11%, benefiting from customer experience enhancements and celebrity capsule collections.
- Highest-Ever EBITDA: EBITDA touched a record ₹174 crore, up 16% YoY, with EBITDA margins expanding 110 bps YoY to 14.5%, driven by an optimized channel mix, reduced discounting, and continued cost efficiencies.
- Profit Growth:
- PBT surged by 55% to ₹69 crore.
- PAT from continuing operations grew by 71% to ₹28 crore.
- Working Capital Management: Gross working capital (GWC) days remained stable at 143 days, with inventory days improving by five days.
Segment-Wise Performance
- Retail Channel: 15% YoY growth, contributing 47% to total revenue.
- Online Business: 20% YoY growth, with a higher margin profile.
- Wholesale Channel: Flat YoY performance.
- Women’s Wear: Doubled YoY, driving overall business expansion.
Brand Performance
- U.S. Polo Assn.: Strong leadership position, poised to cross ₹2,000 crore in net sales value (NSV). A high-impact USPA x Pacho campaign supported festive season sales.
- Arrow: Benefited from a strong wedding season, new premium Italian line, and expansion of New York-themed collections.
- Flying Machine: Successfully engaged Gen Z consumers through the ‘Flying Machine x Orry’ campaign, winning IFF’s most admired celebrity endorsement award.
- Tommy Hilfiger & Calvin Klein: Continued premiumization drove industry-leading sell-throughs and LTL growth.
Strategic Outlook
- Retail Expansion: Plans to open 150 new stores, primarily through franchise-owned, franchise-operated (FOFO) models.
- Brand Strengthening: Aggressive investments in advertising, celebrity collaborations, and product innovation.
- Profitability Focus: Continued cost optimization, operating leverage, and richer channel mix to drive higher margins.
- Financial Discipline: Strong cash flow generation, working capital efficiency, and ongoing deleveraging efforts to improve ROCE & ROE.
Management Commentary
Shailesh Chaturvedi, MD & CEO, Arvind Fashions Limited, stated:"AFL delivered another quarter of differentiated performance despite a tepid demand environment. Our focus on premiumization, enhanced retail experience, and celebrity collaborations has helped achieve 11% retail LTL growth and 7% revenue expansion. The highest-ever quarterly EBITDA and 71% PAT growth reflect our strategic focus on scaling key brands and optimizing costs. Looking ahead, we remain committed to profitable growth and improved ROCE."