Arvind Limited on Tuesday reported double-digit growth in consolidated revenue and profit after tax (PAT) for Q3 FY25. The textile and garment conglomerate clocked in a consolidated revenue of Rs 2,089 crore, marking an 11% year-on-year increase from Q3 FY24’s revenue of Rs 1,888 crore. Its PAT rose to the company’s highest in 10 quarters at Rs 103 crore, rising 13% from the year-ago period’s Rs 92 crore.
Its share price, however, dropped 9.68% from yesterday’s Rs 358.40, closing on Tuesday at Rs 323.70.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the company grew 10% year-on-year to Rs 237 crore from the corresponding year’s Rs 216 crore. Arvind’s EBITDA margin this quarter was 11.3% compared to the corresponding period’s 11.4%.
Arvind registered a 21% year-on-year volume growth in segments such as garmenting, with the current product mix trend showing a higher percentage of knitted products in the overall basket.
Sequentially, the company faced a muted 9% growth in revenue of Rs 376 crore for its apparel, merchandising and design (AMD) segment, owing to factors such as a change in the product mix skewed towards lower value items, diluted value of growth and realignment within the mass transport and industrial segment of the business. EBITDA for the same stood at Rs 57 crore with a margin of 15%. In its media statement, Arvind remains optimistic and predicts an upward growth trajectory for AMD in the future.
Arvind’s textile division reported an 11% revenue growth of Rs 1,577 crore with an EBITDA of Rs 177 crore, translating to a margin of 11.2%. The company attributed this growth to the success of its verticalization strategy, new customer acquisition, diversification of product categories and an overall better demand in the segment. The division is predicted to continue gaining momentum.
Other segments such as woven and denim fabric recorded a 7% and 19% year-on-year basis volume growth, despite a weak season for denim. Woven fabric, however, achieved 100%+ utilization with a volume of 35 mn meters – its highest volume in the past 3 years.
Arvind’s net debt has increased by Rs 36 crore on a quarter-on-quarter basis, presently pegged at Rs 1,345 crore. This is attributed to an increase in working capital debt. In the 9 months of FY25, Arvind’s investments in various capex projects stood to Rs 349 crore. The company predicts this figure to increase to Rs 400-500 crore.
The company’s return on capital employed (ROCE) increased by 170 bps, reaching 14.6% this quarter. It aims to continue the growth momentum in FY25-26 while improving its margins and achieving a targeted ROCE profile of over 20%.