Arvind Fashion delivers robust quarter performance, revenue increases 14% in Q4

Power brands posted growth of 17% with significantly improved profitability on yoy and qoq basis.

Jun 03, 2021 03:06 IST India Infoline News Service

Arvind Fashions Limited (AFL), India’s leading casual and denim player, has declared its financial results for the fourth quarter and full year ended 31st March, 2021.

Key Highlights:
  • Q4 FY21 revenue grew by 14% with marginally positive LTL store sales. This was driven by strong recovery across the channels and increased footfalls in the stores. It was further aided by continued traction in the online channel
  • Power brands posted growth of 17% with significantly improved profitability on yoy and qoq basis. USPA & Tommy Hilfiger sales recovery was strongest at 125% delivering double digit EBITDA (pre-IndAS)
  • Sephora sales recovery was 114% led by both offline & online channels
  • Significant investments into omni-channel and digital solutions are yielding great results. Overall online channel sales increased by ~4x yoy in Q4 FY21; Direct to consumer online sales witnessed 3.6x growth over last year
  • Strong sales growth coupled with efficient cost management enabled the company to deliver 98% growth in EBITDA for continuing business at 97cr in Q4 FY21 compared to 49cr in Q4 FY20
  • Cost reduction by 40% (amounting to ~540cr) for the year helped offset the huge impact of Covid on the profitability
Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said “We’re very encouraged by the strong sales recovery in H2, for our 6 high conviction brands in the portfolio when Covid related lockdowns eased. This coupled with cost optimization efforts led to significant improvement in our profitability.

While the demand environment continues to stay volatile in near term due to second wave of Covid, we’re confident of medium-term outlook to scale up powerful brands in our portfolio through continued store expansion and digital & omni-channel presence”

Arvind Fashions ended at Rs147.80 apiece down by Rs0.25 or 0.17% on the BSE.

Related Story

Open Free Demat Account (Rs699)