Arvind Fashions posts Q3 net of Rs 6 crore after narrowing biz

After narrowing its business down to branded apparel early in the current fiscal year 2021-22, Arvind Fashions Ltd. (AFL) has registered a consolidated net profit of Rs 6 crore in the third quarter ended December 31, 2021.

Having raised funds to deleverage, AFL had exited certain brands and businesses to focus on only six marquee brands including US Polo Association, Arrow, Flying Machine, Calvin Klein, Tommy Hilfiger and beauty brand Sephora to yield profitability and untapped growth.

The efforts to narrow its focus seem to have worked since AFL had incurred a net loss of Rs 68 crore during the third quarter in the previous year 2020-21.

AFL's revenue grew by 30 per cent on a year-on-year (YoY) basis to Rs 1008 crore in Q3 of FY'22, up from Rs 773 crore in Q3 of FY'21.

Commenting on the performance of the company, AFL MD & CEO Shailesh Chaturvedi said that the quarter's financial performance was achieved on the back of sharp execution in retail channel resulting in over 40 per cent like-to-like (LTL) growth and continued momentum in online channel, leading to EBITDA margins expansion by 200 bps.

"With significant de-leverage and leaner balance sheet coupled with continued focus on our 6 high conviction brands, we’re confident of delivering sustainable profitable growth over long term while creating value for all our stakeholders," said Chaturvedi.

The power brands clocked a revenue growth of 25 per cent in the quarter with EBITDA margin expanding by 150 bps on YoY basis.

Meanwhile, the company's net debt stood at Rs 430 crore, lower by roughly Rs. 500 crore compared to March 2021.

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