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Entry Price

760.00

Target

860.00

Recommend Date

10-07-2020

Return

-13.16 %
BUY

Date : 10-07-2020

Arvind Fashions (AFL) reported its first quarterly numbers post its demerger from Arvind Ltd. Revenues grew 1.5% YoY to | 1169.0 crore. The muted revenue growth was on account of exit from long credit cycle customers in power brands and subdued market conditions. On account of lower discounting days, gross margins improved significantly by 239 bps YoY to 53.2% while EBITDA margins expanded 75 bps YoY to 7.3%. Substantial increase in interest cost (up 71% YoY to | 35 crore) further impacted PAT growth. The ensuing PAT declined 9.2% YoY to | 21.3 crore