In This Article:
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Revenue: INR2,188 crores, a 14% growth, highest in past nine quarters.
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EBITDA: INR221 crores, reflecting similar growth as revenue.
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EBITDA Margin: Adjusted margin at 10.6% YoY.
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Profit Before Tax: Increased by 20% to INR135 crores.
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Profit After Tax: Adjusted figure at INR97 crores after deferred tax impact.
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Textile Division Revenue: INR1,633 crores with an EBITDA of INR168 crores, margin at 10.3%.
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Advanced Material Division Revenue: INR388 crores with an EBITDA of INR60 crores, margin at 15.3%.
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CapEx: INR167 crores spent in the first half, 40% of the annual plan.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Arvind Ltd (BOM:500101) reported a 14% growth in revenue for Q2 FY25, reaching INR 2,188 crores, marking the highest quarterly revenue in the past nine quarters.
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The company achieved a 20% increase in profit before tax, reaching INR 135 crores, despite challenges in the macro environment.
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Arvind Ltd's textile division showed strong performance with an EBITDA margin of 10.3%, supported by volume growth and a stable product mix.
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The advanced material division reported a revenue growth of nearly 10% and maintained a margin of 15.3%, with expectations of further growth in the coming quarters.
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The company is on track with its capital management plan, having spent 40% of its annual CapEx plan to augment garmenting and AMD capacity, indicating a focus on future growth.
Negative Points
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Higher logistics costs, particularly air freight, impacted the company's EBITDA, with a spillover cost of INR 11 crores.
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Fixed costs, including salaries, increased during the quarter, affecting overall profitability.
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Deferred tax adjustments eroded the profit after tax, with a one-time impact of INR 29 crores.
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The human protection segment within the advanced material division faced lower-than-expected demand from a major customer, impacting growth.
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The company anticipates being slightly short of its garment volume target for the year, indicating potential challenges in meeting demand expectations.
Q & A Highlights
Q: Can you elaborate on the performance and future outlook of the Advanced Material Division (AMD)? A: Punit Lalbhai, Vice Chairman, Executive Director: We are confident about achieving 15%+ value growth in AMD. Despite some price erosion due to raw material price drops, volume growth was around 15%. Human protection demand was unexpectedly low from a major customer, but we have compensated for this in future quarters.