Chennai, August 6, 2018: Arvind Limited has declared its financial results for the first quarter of FY 2019.
- Overall revenues increased 10 percent year on year
- PAT before exceptional items grew 13 percent
- EBITDA for branded apparel grew by 75 percent
- Adjusted for GST & IndAS, revenues for branded apparel grew 18 percent
Outlook: Branded apparel segment is likely to continue its industry leading 20 percent plus growth momentum and steady margin expansion is expected
|Results (Rs. cr)||Q1 FY 2019||Q1 FY 2018||Growth|
|PAT before exceptional items||75||67||13%|
|PAT after exceptional items||67||60||12%|
Q1 FY2019 Financial Performance
The Board of Directors of Arvind Limited has approved the first quarter results of the Company. Backed by the strong performance of Branded Apparel business the Company delivered an impressive EBITDA growth of 18% accompanied by an increase in top-line of 10%. Profit After Tax (PAT before exception items) grew by 13% to Rs 75 cr.
Business segment highlights
- EBITDA for Branded Apparel grew by 75% while revenues grew by 13% over Q1 in the previous year. Adjusting for GST & IndAS, the revenue growth was ~18%.
- Power Brands – Arrow, US Polo Association, Flying Machine and Tommy Hilfiger – grew by strong 16% (20% adjusted for GST). Unlimited – the value retail offering – grew by 20%.
- Garment volumes up ~20% following the verticalization strategy – greenfield expansion across 3 new states underway
- Fabric volumes held nearly steady despite GST related base effect and Denim industry overcapacity
Branded Apparel segment is likely to continue its industry leading 20%+ growth momentum and steady margin expansion is expected.
Backed by garment expansion and new products, Textiles segment is likely to grow by 10% with improving margins.
Update on demerger
As stated earlier, the Company is looking to demerge its Branded Apparel and Engineering businesses into separate companies. This process is progressing as planned, and final approvals are expected in early Q2.
About Arvind Limited
Arvind Limited is the largest Textiles, Apparel and Fashion player with revenues exceeding $1.7 billion. The company is full supply chain partner to world’s leading fashion brands. The domestic fashion business includes the most iconic brands like US Polo Association, Tommy Hilfiger, Calvin Klein, Arrow, Flying Machine, Gap and Sephora, to name a few.