Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY2021 Earnings Presentation
20 slides from Arvind Fashions's earnings presentation, February 2021
Slide 1: Arvind Fashions Limited Q3 FY21 Results Presentation
Arvind Fashions Limited Q3 FY21 Results Presentation Feb 2021 1
Slide 2: Agenda
Q3 Performance Highlights Q3 & YTD Results with IndAS Agenda Q4 Outlook 2
Slide 3: Q3 FY21 Highlights
Q3 FY21 Highlights 1 Sales more than Doubled between Q2 & Q3 with recovery of 86% 2 Gross Working Capital reduced by Rs. 400+ Crs 3 USPA : Sales Recovery at 91%. Brand back to annualized run rate of Rs. 1,000+ Crs with double digit EBITDA (pre-IndAS). Brand extensions – Innerwear & Footwear on profi
Slide 4: Sales Recovery & EBITDA
Sales Recovery & EBITDA Rs. Crs. Sales EBITDA (pre-IndAS) 901 34 83% 86% 437 39% -82 94 11% -142 Q1 Q2 Q3 Q1 Q2 Q3 4 Sales Doubled between Q2 & Q3 * Continuing Brands
Slide 5: Sales Recovery : Stores
Sales Recovery : Stores Stores 95% 69% 66% 63% 44% 54% 50% 37% 9% Q1 Q2 Q3 Jul Aug Sep Oct Nov Dec5
Slide 6: Sales Recovery : Department Stores
Sales Recovery : Department Stores Department Stores 94% 65% 72% 50% 33% 46% 39% 19% 6% Q1 Q2 Q3 Jul Aug Sep Oct Nov Dec6
Slide 7: Sales Recovery : Online
Sales Recovery : Online Online 320% NNNOW + Marketplaces 230% Revenue 165% FY20 x 121% 125% 124% 113% 40% FY21 YTD Dec 3.3x Q1 Q2 Q3 Jul Aug Sep Oct Nov & Dec 7
Slide 8: Agenda
Q3 Performance Highlights Q3 & YTD Results with IndAS Agenda Q4 Outlook 8
Slide 9: Q3 FY21 - Performance Snapshot
Q3 FY21 - Performance Snapshot (Figures in INR Crs) Reported Q3 FY21 Q2 FY21 Change Q3 FY20 Revenue from Operations (continuing 901 437 106% 1051 operations) Other Operating Income (Rent 10 27 (63%) 11 concessions) Total Income 911 464 96% 1062 EBITDA 84 (18) - 124 PBT (34) (151) - (67) Exceptional
Slide 10: Groupwise Performance
Groupwise Performance Without IndAS Reported Sales (Rs Crs.) EBITDA (Rs Crs.) EBITDA (Rs Crs.) Q3 FY21 % Recovery Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Power 639 97% 41 36 94 63 Brands Specialty Retail 178 70%# -1 2 35 20 Emerging Brands 85 79% -10 -3 (5) 0 Total 901 86% 30 34 124 84 Note: Continuing Bran
Slide 11: YTD Performance Snapshot
YTD Performance Snapshot (Figures in INR Crs) Reported YTD Q3 YTD Q3 Growth FY20 FY21 Revenue from Operations (continuing 2,940 1,433 (51%) operations) Other Operating Income (Rent 18 103 concessions) Total Income 2,958 1,535 (48%) EBITDA 268 24 PBT (259) (368) Exceptional Items - 45 PBT for Discont
Slide 12: YTD Q3 Groupwise Performance
YTD Q3 Groupwise Performance Without IndAS Reported Sales (Rs Crs.) EBITDA (Rs Crs.) EBITDA (Rs Crs.) YTD FY21 % Recovery YTD FY20 YTD FY21 YTD FY20 YTD FY21 Power 259 29 964 51% 108 (92) Brands Specialty Retail 310 43% (33) (53) 63 21 Emerging Brands 159 50% (19) (45) (54) (26) Total 1433 49% 56 (1
Slide 13: Strong Presence in Categories Recovering Faster
Strong Presence in Categories Recovering Faster Accelerated Casualization & Work from Home Innerwear/ Casual Brands Footwear Kidswear DIY Beauty Comfortwear • USPA/TH/FM/CK • Strong consumer • Strong demand for • Strong omni-push portfolio of strong off-take in the • Recovery witnessed kids clothing
Slide 14: Working Capital
Working Capital Inventory (Rs Crs.) Debtors (Rs Crs.) 1367 1322 781 1152 696 679 1013 635 Mar-20 Jun-20 Sep-20 Dec-20 Mar-20 Jun-20 Sep-20 Dec-20 Creditors (Rs Crs.) Net Working Capital (Rs Crs.) 1325 823 739 1280 665 540 1151 1123 Mar-20 Jun-20 Sep-20 Dec-20 14 Mar-20 Jun-20 Sep-20 Dec-20
Slide 15: Cost Control
Cost Control Total (Rs Crs.) Rent Savings (Rs Crs.) 357 338 • Booked in Q1: Rs 70 Crs -16% 300 -11% • Booked in Q2: Rs 29 Crs 300 • Booked in Q3 : Rs 21 Crs Booked Booked Booked Q3’20 Q3’21 Q4’20 Q3’21 in Q1 in Q2 in Q3 Q1 41.3 - - Q2 18.0 25.5 - Employee Emoluments (Rs Crs.) Other Expenses (Rs Crs.
Slide 16: Distribution Footprint
Distribution Footprint Q3 FY21 Exit North Store Sq Ft (Lacs) Store Count Count 505 West Stores 1277 20.0 Store Count 241 Dept. Stores 3500+ - East Store Count 142 MBO 10000+ - South Innerwear Wear Store Count MBO 13000+ - 389 Number of Stores Opened in Q3 : 45 16
Slide 17: Growth Drivers
Q3 FY21 Summary • 6 Strong Brands with leading market positions to drive • Portfolio rationalization completed. All resources focused growth with improved Profitability and ROCE on 6 brands • As a leading Casual – Wear player, product portfolio well • USPA / TH / CK exhibiting strong momentum with h
Slide 18: Agenda
Q3 Performance Highlights Q3 & YTD Results with IndAS Agenda Q4 Outlook 18
Slide 19: Q4 Outlook
Q4 Outlook Channel Performance • Offline sales recovery in January better than December. Overall Q4 revenues to be higher than last year • Online sales will continue high double digit growth • While sales recovery is healthy in the MBO channel, the company is taking a more cautious view on billing a
Slide 20: Thank You
Thank You