Amidst the ongoing challenges in the macroeconomic environment, Arvind Limited, one of the leading textile players in the country, announced that the volumes across segments of Textile and Advanced Material division (AMD) clocked a healthy growth in the Q4 of FY24. Additionally, the textile and garment major said that their growth journey for the financial year 2024-25 is to be led with a discrete Capex program for the next three years till FY27.
As per the company statement, the Denim segment registered a 13% growth while the full garments registered 41% growth and, AMD (Advanced Material segment) combined product volume registered a growth of 17% compared to Q4 in FY23. In the Q4 of FY24, the overall revenue for Arvind stood at Rs 2075 crore against Rs 1881 crore in Q4 FY23, a 10% growth on a YoY basis. The revenue for full FY24 witnessed a drop of around 8% and stood at Rs 7738 crore compared to the revenue of Rs 8382 crore in FY23.
While the PAT (Profit after tax) for Q4, FY24 witnessed an increase of 19% to reach Rs 99 crore from Rs 83 crore in the same quarter previous year, it declined by around 4% to Rs 334 crore in FY24 against Rs 349 crore in FY23. Registering a growth of 21% compared to Q4 FY23, the AMD segment delivered its highest ever revenue of ₹387 Cr in Q4 FY24. The company also said that the operating leverage helped in achieving the highest ever EBITDA margin of 15.8%, an improvement of 131 bps on a YoY basis. In the full year of FY24, AMD business registered revenue of ₹1428 Cr and EBITDA of ₹222 Cr, a growth of 14% and 35% respectively.
As per the company statement, all business units currently reported in the Advanced Material (AMD) segment of Arvind Ltd are consolidating under one umbrella structure named ‘Arvind Advanced Material Ltd’ (AAML). The company expects FY25 to deliver a strong set result across key parameters of volume and revenue resulting in growth in EBITDA with healthy margins and returns with its traditional textile business growing at a more secular rate aligned to GDP, while the AMD business is expected to grow at 20% CAGR.
Furthermore, Arvind Limited has budgeted Rs 400-450 crore for its capex program for this financial year. The proposed capex investments will go towards capacity increase in AMD, garments and augment product differentiation capabilities & maintenance in Fabric business. This initiative also includes investment in sustainability programs like renewable energy, which will help Arvind’s share of renewable power to improve from the current 47% to 90%. The Capex plan will be funded mostly from internal accruals, the company release stated.
After the announcement of the results, the share prices of Arvind Limited (NSE: ARVIND) ended up in red. By the end of the trading for the day, the share closed at Rs 332 per share, witnessing a drop of Rs 1.55 or 0.46%.