Arvind (500101) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in Q3 FY25, with strong performance in textiles and garmenting, and stable margins across segments.

• Garmenting volumes exceeded 9 million pieces for the fourth consecutive quarter, aided by new customer acquisitions.

• Company regained No.1 position in India in S&P DJSI sustainability assessment and won Gold at the Spotlight Awards for its 2024 Integrated Annual Report.

• Unaudited standalone and consolidated financial results for Q3 FY25 were approved and reviewed by the Board and auditors, with no material misstatements identified.

• Management remains confident about future growth, supported by innovation, customer centricity, and sustainability initiatives.

Financial highlights

• Consolidated Q3 FY25 revenue was ₹2,089 crore, up 11% year-over-year; EBITDA at ₹237 crore, up 10%, with margin stable at 11.3%.

• Net profit after tax reached ₹103 crore, the highest in 10 quarters, up 13% year-over-year.

• Standalone revenue for Q3 FY25 was ₹1,926.65 crore, up from ₹1,754.24 crore in Q3 FY24; standalone net profit was ₹83.86 crore.

• Return on capital employed improved by 170 bps to 14.6%.

• Net debt increased by ₹36 crore sequentially, with long-term debt down and working capital debt up.

Outlook and guidance

• Garmenting division targets 20%+ revenue growth and capacity expansion to 48-49 million pieces next year.

• AMD division maintains a long-term 20% growth trajectory, with Q4 expected to show mid-teen growth and normalization by Q1 next year.

• Regulatory approval for the transfer of the Advanced Materials division to a wholly owned subsidiary is pending.

• Management is confident in sustaining growth through capacity additions, operational efficiency, and selective inorganic opportunities.