Arvind Fashions Ltd Q4FY21 consolidated loss at Rs. 103.25 crores

Arvind Fashions Ltd has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.794.18 crores during the period ended March 31, 2021 as compared to Rs.911.13 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.(103.25) crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.(68) crores for the period ended December 31, 2020.

The company has reported EPS of Rs.(9.89) for the period ended March 31, 2021 as compared to Rs.(5.26) for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 794.18 crs	₹ 911.13 crs	-12.84%
Net Profit	₹ (103.25) crs	₹ (68) crs	51.84%
EPS	₹ (9.89)	₹ (5.26)	88.02%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.794.18 crores during the period ended March 31, 2021 as compared to Rs.715.08 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.(103.25) crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.(204.34) crores for the period ended March 31, 2020.

The company has reported EPS of Rs.(9.89) for the period ended March 31, 2021 as compared to Rs.(26.10) for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 794.18 crs	₹ 715.08 crs	11.06%
Net Profit	₹ (103.25) crs	₹ (204.34) crs	-49.47%
EPS	₹ (9.89)	₹ (26.10)	-62.11%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.2329.50 crores during the 12 months period ended March 31, 2021 as compared to Rs.3673.35 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.(579.78) crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.(400.74) crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.(62.86) for the 12 months period ended March 31, 2021 as compared to Rs.(51.18) for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 2329.50 crs	₹ 3673.35 crs	-36.58%
Net Profit	₹ (579.78) crs	₹ (400.74) crs	44.68%
EPS	₹ (62.86)	₹(51.18)	22.82%

Key Highlights

- Q4 FY21 revenue grew by 14% with marginally positive LTL store sales. This was driven by strong recovery across the channels and increased footfalls in the stores. It was further aided by continued traction in the online channel

- Power brands posted growth of 17% with significantly improved profitability on Y-o-Y and Q-o-Q basis. USPA & Tommy Hilfiger sales recovery was strongest at 125% delivering double digit EBITDA (pre-IndAS)

- Sephora sales recovery was 114% led by both offline & online channels

- Significant investments into omni-channel and digital solutions are yielding great results. Overall online channel sales increased by ~4x Y-o-Y in Q4 FY21; Direct to consumer online sales witnessed 3.6x growth over last year

- Strong sales growth coupled with efficient cost management enabled the company to deliver 98% growth in EBITDA for continuing business at 97 Crs in Q4 FY21 compared to 49 Crs in Q4 FY20

- Cost reduction by 40% (amounting to ~540 Crs) for the year helped offset the huge impact of Covid on the profitability

- Balance Sheet has been strengthened compared to Mar'20 with

- Gross & net working capital reduction by 523 Crs and 172 Crs respectively in FY21 through sharper controls around inventory & debtors and new ways of buying

- Reduction in net debt by 300+ Crs through equity infusion and working capital improvement

Commenting on the performance of the company, Mr. Shailesh Chaturvedi, MD & CEO said "We're very encouraged by the strong sales recovery in H2, for our 6 high conviction brands in the portfolio when Covid related lockdowns eased. This coupled with cost optimization efforts led to significant improvement in our profitability. While the demand environment continues to stay volatile in near term due to second wave of Covid, we're confident of medium-term outlook to scale up powerful brands in our portfolio through continued store expansion and digital & omni-channel presence."

Source : Equity Bulls

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