Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Arvind Fashions continues to focus on profitable growth & cash flow

Posted On: 2019-10-23 16:59:50


Arvind Fashions Limited (AFL), India's leading casual and denim player, has declared its financial results for the second quarter and half year ended September 30, 2019.

Arvind Fashions Limited continues to make progress in Q2 FY20 on its stated goal of exiting non-strategic emerging brands, reducing exposure to long payment-cycle customers and aligning primary sales more closely with secondary sales. While these measures are helping the inherent strength of the business, they continue to adversely impact the reported Q2 FY20 revenues and EBITDA for the continuing brands. Financial results were also impacted by the ongoing consumption slowdown in the country.

Commenting on the financial performance of the company, Mr. J Suresh, Managing Director and Chief Executive Officer said "We are on track on our strategic decision to exit nonstrategic brands and alignment between primary and secondary sales. Brand exits will be completed in Q3. While this had a short-term impact on our performance, but it augurs extremely well for long-term health of our business. The external environment continues to remain volatile, but we remain optimistic about our future given our inherent strengths."

Financial performance for Q2 FY20

- Total revenues for continuing brands was INR 1,119 Crore. Net of brands that are planned to be discontinued, reported revenue was INR 1,114 Crore

- EBITDA was INR 112 Crore including benefit of INR 101 Crore in EBITDA towards lease expenses

Business Group Highlights (for continuing brands)

- Power Brands (comprising of US Polo, Arrow, Flying Machine and Tommy Hilfiger) revenues de-grew by 4% in Q2 FY20 to INR 734 Crore. Three out of four brands posted growth with improved sequential profitability while one of the brands continues to be impacted on account of exit of institutional channel and conscious measure to reduce our exposure to long credit cycle customers. Q2 FY20 EBITDA (excluding IndAS 116 impact) for the power brands was INR 43 Crore vs INR 98 Crore in LY Q2.

- Specialty Retail (consisting of Unlimited, GAP and Sephora) registered flat revenue in Q2 FY20 to INR 248 Crore. GAP and Sephora continue to post robust growth and remain profitable. Unlimited losses were contained at similar levels in Q2 FY20 compared to LY Q2, despite accounting for store closure costs.

- Emerging brands(comprising of brands like Calvin Klein, Aeropostale, Ed Hardy, etc.) reported revenue de-grew by 5% in Q2 FY20 to INR 132 Crore. EBITDA loss was higher than estimate at INR 12 Crore, on account of channel correction, store closure & royalty settlement costs. The process of exiting non-strategic brands is likely to be completed in Q3 FY20.

Outlook

During FY20, Company will continue to focus on working capital efficiency through disciplined efforts around debtors' control, secondary sales alignment, reduction in inventory and closure of unviable brands & retail stores.

Operationally, we continue to focus on taking the required in-market actions to improve secondary sales, add to our retail presence, expand online sales and continue accelerated growth in our leadership categories across Premium Casual and Denimwear, Kidswear, Innerwear and Prestige Beauty. Our capability build-up in Analytics for demand planning and fulfilment as well as Omnichannel is continuing and will contribute to growth, profitability and capital efficiency in future.


We continue to remain optimistic about the future of our business as we take necessary actions to make the company future ready with right capabilities and fit for profitable growth.

Rights Issue

Board has approved issue of equity shares up to Rs. 300 crores on rightsissue basisto meet the general corporate purposes including capital expenditure and working capital requirements of the Company, and to reduce the levels of borrowing for the company.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Blue Dart Express Sales at Rs. 31,664 million

Sun Pharma Advanced Research Company Ltd board to announce 4th quarter results on June 2, 2020

Stovec Industries Ltd board to consider Q4, FY20 results on June 4, 2020

Greaves Cotton Limited board to approve Q4, FY20 results on June 5, 2020

CRISIL reaffirms commercial papers rating of Edelweiss Financial Services Limited

Gulshan Polyols Ltd Q4 PAT at Rs. 2.78 crore

Alkem Laboratories Ltd Board to consider FY20 results & Final Dividend on June 05, 2020

Wonderla Holidays Ltd Q4 FY20 PAT slides to Rs. 1.56 crore

S H Kelkar and Company Ltd consolidated Q4 FY2020 PAT at Rs. 12.02 crore

Kewal Kiran Clothing Ltd posts Rs. 15.76 crore consolidated PAT in Q4 FY2020

Gujarat Gas Ltd board to consider FY20 results, dividend on June 5, 2020

Kewal Kiran Clothing Ltd Board approves Dividend of Rs. 6

Deepak Nitrite Ltd reports consolidated PAT of Rs. 172.30 crore in Q4 FY2020

Coromandel International Ltd board recommends dividend of Rs. 12 for FY2020

Fiinovation Partners with Dhampur Sugar to help Delhi Slums Fight COVID-19 Pandemic

LTI Wins 2020 SAP® Pinnacle Award as the Industry Innovation Partner of the Year

Kotak Mahindra Bank fixes floor price for QIP as Rs. 1147.75

Wipro launches Global Channel Partner Program for innovative products and platforms

Shanthi Gears Limited announces financial results for period ended March 31, 2020

V I P Industries Ltd reports consolidated Q4 FY20 PAT at Rs. 9.52 crore

Coromandel International Ltd Q4 FY20 consolidated net profit at Rs. 234.20 crore

PRAJ Industries Ltd posts Rs. 24.86 crore PAT in Q4 FY20

Visaka Industries Ltd reports Q4 PAT of Rs. 6.85 crore

Maruti Suzuki partners with ICICI bank to offer customers specially curated, flexible EMI financing schemes

ITI Limited manufactures face shields -Joins fight against COVID19

Sundaram Finance Ltd board to consider final dividend for FY20

Add-Shop Promotions Ltd Board approves 3:4 Bonus Issue

Satia Industries Limited Signs Agreement with Minerals Technologies to Construct a 42,000 Metric Ton Per Year Satellite PCC Plant in India

Vakrangee announces corporate agency tie up with LIC

Symphony Limited board to announce 4th quarter results on May 29, 2020

Firstsource Solutions Ltd Q4 FY20 consolidated PAT climbs QoQ to Rs. 91.57 crore

Automotive Axles Ltd posts PAT of Rs. 5.75 crore in Q4

Daawat Basmati Rice celebrates relationships with # PehliDaawat Campaign

Newgen Software Technologies Ltd Board approves dividend of Rs. 2 for FY20

Automotive Axles Ltd board recommends dividend of Rs. 0.80

Newgen Software Technologies Ltd Q4 FY20 consolidated PAT up QoQ at Rs. 41.46 crore

McDonald's India Introduces Contactless Take-Out Service For Customers

Infosys and Avaloq Partner to Strengthen Wealth Management Capabilities through Digital Platforms

Reliance Power wins lawsuit in Indonesian Court, to get arbitration award of $68 million

Menon Bearings Ltd Q4 PAT at Rs. 3.30 crore

Indoco receives USFDA approval for Succinylcholine Chloride Injection USP

Steel Strips Wheels Ltd's tractor segment production running at 90% capacity

Orient Electric Ltd board to announce Q4, FY20 results, final dividend on June 1, 2020

Customer Safety in focus: Maruti Suzuki issues safety norms for True Value

Glenmark to commence another new Phase 3 clinical trial on a combination of two anti-viral drugs Favipiravir and Umifenovir in hospitalized patients of moderate COVID-19 in India

Zuari Agro Chemicals Ltd's NPK-A plant resumes operation from May 25, 2020

Polyplex Corporation Ltd Q4 FY2020 consolidated PAT falls to Rs. 22.97 crore

InterGlobe Aviation Ltd board to consider Q4, FY20 results on June 2, 2020

Jubilant Life Sciences Ltd board to approve FY20 results, NCD issue on May 29, 2020

Polyplex Corporation Ltd Board approves final dividend of Rs. 6







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019