-: Stock News :- ARVINDFASN
Arvind Fashions Ltd.
Q2FY22 Quarterly Result Announced for Arvind Fashions Ltd.
Highlights: Q2 FY22 revenues grew by 113% to Rs. 812 Crs compared to Q2 FY21. This was driven by significant easing of COVID related restrictions resulting in strong footfalls across retail channel and continued growth in online business. Sales recovery was 90%+, compared to pre-COVID levels of Q2 FY20 Power brands grew by 145% with significantly improved profitability on YoY basis Online channel sales higher by 55% compared to Q2 FY21, contributing 40%+ of company’s revenues Strong sales recovery has continued in Oct’21 registering high-teens like-to-like growth in the festive period in retail channel, compared to pre-COVID Robust sales growth coupled with cost optimization measures led to significantly improved operating profitability resulting in EBITDA of Rs. 72 Crs compared to loss of Rs. 14 Crs in Q2 FY21. This translated into cash break-even for continuing business Continued focus on working capital coupled with divestment of Unlimited retail business resulted in inventory and gross working capital lower by Rs. 180 Crs compared to Sep’20 Gross debt lower by Rs. 70 Crs compared to June’21. Proceeds from preferential allotment utilized to reduce debt further, as on date Raised Rs. 400 Crs through preferential allotment to various marquee investors and promoters, thereby strengthening the balance sheet and insulating from any near-to-medium term uncertainties Successfully completed strategic sale of assets of ‘Unlimited’ retail business to V-Mart Retail Ltd. Exit of discontinued businesses completed; no losses pertaining to them from Q3 FY22 onwards Commenting on the performance of the company, Mr. Shailesh Chaturvedi, MD & CEO said “We are happy to see rapid sales recovery across channels aided by strong nationwide vaccination program leading to positive consumer sentiment. Business has returned to normalcy towards end of quarter, thereby, providing a strong start to festive period. During the quarter, we raised Rs. 400 Crs via preferential issue through marquee investors and promoters resulting in strengthened balance sheet along with adequate funds available for growth moving ahead. With exit of discontinued brands completely behind us, our sharp focus on 6 high conviction brands will help deliver robust sales growth with significantly improved operational profitability in H2 FY22” Result PDF