Arvind Fashion to be listed in next few weeks: Executive Director Kulin Lalbhai

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New Delhi | Published: February 15, 2019 5:25:45 AM

The consolidated revenue of AFL stood at Rs 1,259 crore in Q3FY19, up by 17% y-o-y, while its Ebitda increased by 19% y-o-y at Rs 82 crore in Q3FY19. Profit after tax (PAT) increased by 98.5% y-o-y at Rs 8.4 crore in Q3FY19.

arvind fashion, arvid storeLalbhai expects the online business to constitute over 18% of the overall business with 15-20% controlled by omni-channel strategies.

The demerged Arvind Fashions Limited (AFL) brand will be listed in the next few weeks, Arvind Limited executive director Kulin Lalbhai said on Thursday. AFL was demerged from parent entity Arvind Limited on November 29, 2018, and handles the branded and retail business. “AFL will be listed this month,” Lalbhai said in an interview to a business news channel.

AFL has power brands such as US Polo Association, Arrow, Flying Machine and Tommy Hilfiger; speciality retail brands such as Gap, Sephora and Unlimited, which are the company’s family fashion store chain, and emerging brands that include Calvin Klein, Aeropostale, The Children’s Place and Ed Hardy.

Commenting on plans to reclassify some of the speciality and emerging brands as power brands, Lalbhai said the company is thinking about this as brands such as Sephora grew around 40% year-on-year. “Beauty concepts like Sephora will become a Rs 500-crore opportunity in a few years and other concepts like Calvin Klein and GAP are also scaling up. They have hit the `100-crore mark. Our speciality value retail format Unlimited is also touch Rs 1,000 crore next year,” he added. He further said the company had made heavy investments in speciality brands like Unlimited and from next year, speciality retail and emerging brands would contribute materially to bottomline growth.

In Q3FY19, power brands and speciality retail’s contribution to operating profit was 11.9% and 1.5%, respectively, whereas emerging brands had a negative share of 3%, as the company had to adjust a one-time loss of `6 crore for discontinued brands, the investors’ presentation said.

Further, Lalbhai expects the online business to constitute over 18% of the overall business with 15-20% controlled by omni-channel strategies.

The consolidated revenue of AFL stood at Rs 1,259 crore in Q3FY19, up by 17% y-o-y, while its Ebitda increased by 19% y-o-y at Rs 82 crore in Q3FY19. Profit after tax (PAT) increased by 98.5% y-o-y at Rs 8.4 crore in Q3FY19. This growth in profit can be attributed to reduction of the deferred tax credit of Rs 5.6 crore from Rs 9.12 crore in Q3FY18, according to the financial statement for Q3FY19.

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As of December 2018, power brands contributed over 60% to the revenue, speciality retail had a revenue share of 25% and the remaining 15% was contributed by emerging brands.
In Q3FY19, AFL recorded a 24% y-o-y growth in sales. The power and speciality retail brands also saw a growth of 28% y-o-y through channel and category expansion.

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