Arvind Fashions on Tuesday posted Q2 profit for the financial year 2023-24 at Rs 37.03 crore, up 31.9 per cent in comparison to Rs 28.08 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 1266.94 crore, up 7.2 per cent as against Rs 1181.81 crore during the second quarter of FY23, despite slower consumer demand. It said that the growth was largely led by retail and MBO channels. While retail channel execution led to a LTL growth of 9 per cent, MBO channels recorded a growth of over 15 per cent.
Arvind Fashions posted steady improvement in power brands EBITDA margin to 13.2 per cent. The company recorded the highest ever quarterly EBITDA of Rs 152 crore compared to Rs 136 crore in Q2FY23. EBITDA margin, meanwhile, improved by ~50 bps despite higher advertising spends of ~100 bps YoY.
“We have delivered the highest ever quarterly financial performance across revenues, EBITDA & PAT, while consumer demand continued to remain soft during the quarter. Sharper execution in the retail channel along with premiumization offering across our marquee brands and decisive focus strategy continue to yield good results. We remain committed to profitably growing the business thereby improving the return ratios, aiding shareholder value creation,” said Shailesh Chaturvedi, MD & CEO, Arvind Fashions.
Arvind Fashions recorded a gross addition of 46 EBOs during Q2. While the sales from power brands including US Polo Assn, Tommy Hilfiger, Flying Machine and Arrow was recorded at Rs 1047 crore during Q2, sales from emerging brands (Calvin Klein, Sephora, Ed Hardy, Aeropostale and Others) was at Rs 220 crore.
Going forward, Arvind Fashions said, the company will work towards driving higher market share through increased investments in advertising and product innovation. It plans to focus on high quality season launch, drive customer experience with better sell-thru’s and lower discounting and even pilot new retail format(s) for existing brands while executing multi-category play. The company is planning to open ~200 stores largely through franchise owned franchise operated model.