India's Arvind Fashions' revenue ascends 5% to ₹1,125 cr in Q3 FY24
14 Feb 24 2 min read
Insights
- Indian firm Arvind Fashions reported a 5 per cent revenue increase in Q3 FY24 to ₹1,125 crore, with a notable two-year revenue CAGR of 12 per cent, driven by retail and MBO channels.
- The company's gross margin expanded by 480bps to 53.3 per cent, fuelling an 18 per cent EBITDA growth to ₹150 crore.
- PAT soared over sixfold to ₹51 crore in Q3 FY24.
A significant aspect of Arvind Fashions' success this quarter was its gross margin expansion, which surged by 480 basis points year-on-year (YoY) to 53.3 per cent. This improvement was driven by a 2 per cent retail like-to-like (LTL) growth, enhanced execution in the retail channel, and a strategy of lower discounting, the company said in a press release.
Furthermore, the company's EBITDA witnessed an 18 per cent growth, reaching ₹150 crore compared to ₹127 crore in Q3 FY23. Despite higher investments in advertising, which increased by 130 basis points YoY, the EBITDA margin improved by approximately 150 basis points.
The profit after tax (PAT) from continuing business, excluding exceptional items, stood at ₹22 crore, marking an 83 per cent YoY growth. The reported PAT experienced a significant leap, growing more than sixfold to ₹51 crore from ₹8 crore in Q3 FY23.
“Strong financial performance in this quarter reflects the focus on profitable growth with 150 bps improvement in EBITDA, a growth of 18 per cent over Q3 last year. The leadership of our key brands is getting strengthened with our conscious investment in marketing along with product innovation which has yielded differentiated results and market share gain,” said Shailesh Chaturvedi, MD and CEO.
Fibre2Fashion News Desk (DP)
Popular News
|
China's fabric exports rise in Q1 2024; Vietnam leads as top market |
|
Demand rises in south India’s cotton yarn market, prices up in Mumbai |
|
Italy’s consumer confidence index up from 95.2 to 96.4 in May: Istat |
|
AI-driven tech can revolutionise global fast fashion industry: Study |
|
North India cotton yarn prices up as ICE cotton gains, demand sluggish |
|
SU.RE, British Council partner to promote sustainability in fashion |