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Apparels & Accessories company Arvind Fashions announced Q3FY24 results:
- Revenues grew by 5% to Rs 1,125 crore compared to Rs 1,073 crore in Q3FY23, with a 2-year revenue CAGR of 12%. The growth was primarily driven by the retail and MBO channels.
- Gross margin expanded by 480 basis points (bps) YoY to 53.3%, attributed to retail LTL growth of 2% with sharper execution in the retail channel and lower discounting.
- Revenue growth, coupled with gross margin expansion, resulted in an 18% growth in EBITDA to Rs 150 crore compared to Rs 127 crore in Q3FY23.
- EBITDA margin improved by approximately 150 bps, despite higher investment in advertising, which increased by 130 bps YoY.
- Profit After Tax (PAT) from the continuing business (excluding exceptional items) stood at Rs 22 crore, reflecting a YoY growth of 83%. Reported PAT grew by over 6 times to Rs 51 crore compared to Rs 8 crore in Q3FY23.
- Control over inventory and lower debtors led to a reduction in gross working capital by 5 days.
Commenting on the performance of the company, Shailesh Chaturvedi, MD & CEO said, “Strong financial performance in this quarter reflects the focus on profitable growth with 150 bps improvement in EBITDA, a growth of 18% over Q3 last year. The leadership of our key brandsis getting strengthened with our conscious investment in marketing along with product innovation which has yielded differentiated results and market share gain”
