Arvind Fashions (ARVINDFASN) Q4 18/19 earnings summary

Executive summary

• FY19 marked the demerger of the branded apparel business and listing on NSE and BSE in March 2019; portfolio growth and profitability improved.

• Portfolio spans lifestyle brands, value fashion and prestige beauty, supported by multi-channel distribution, online sales and brand extensions into kidswear and innerwear.

Financial highlights

• Consolidated revenue from operations was ₹4,643.86 crore, up 10% YoY; underlying growth was 15% after normalizing for Ind AS 115 restatement.

• EBITDA rose 26% to ₹288 crore; EBITDA margin reached 6.2%, up 80 bps YoY.

• Consolidated profit after tax was ₹21.48 crore versus ₹12.92 crore; PBT was ₹12.88 crore versus ₹11.57 crore.

• Finance costs increased to ₹126.21 crore from ₹91.34 crore, reflecting incremental borrowing and higher use of non-fund-based limits.

Outlook and guidance

• FY20 outlook was for strong performance, with focus on profitable growth and increasing ROCE.

• Priorities include strengthening premium casual/denim, premium kidswear and prestige beauty, while expanding men's innerwear.

• Technology investment, digital-first execution and faster speed to market targeted higher productivity and operational efficiency.