In This Article:
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Consolidated Revenue: INR 2,089 crores, growth of 11% year-on-year.
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Consolidated EBITDA: INR 237 crores, growth of 10% year-on-year.
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EBITDA Margin: 11.3%.
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Textile Division Revenue: INR 1,577 crores, growth of 11% year-on-year.
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Textile Division EBITDA: INR 177 crores, EBITDA margin of 11.2%.
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AMD Division Revenue: INR 376 crores, growth of 9% year-on-year.
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AMD Division EBITDA: INR 57 crores, margin of 15%.
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Net Profit After Tax: INR 103 crores, growth of 13% year-on-year.
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Return on Capital Employed: Improved by 170 basis points to 14.6%.
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CapEx: INR 350 crores.
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Woven Fabric Volume: 35 million meters, 7% growth year-on-year.
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Denim Fabric Growth: 19% year-on-year.
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Garmenting Division Volume: 9.3 million pieces, 21% growth year-on-year.
Release Date: January 28, 2025
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 double-digit growth in both revenue and profitability, reinforcing its position as a leader in the textile industry.
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The Woven Fabric segment achieved its highest volume in three years, with a 7% year-on-year growth, driven by 100% capacity utilization.
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The Garmenting division saw a 21% year-on-year growth in garment volume, reaching 9.3 million pieces, with a focus on knitted products.
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The AMD division posted a 9% growth, with a stable EBITDA margin of 15%, despite challenges in product mix and order deferment.
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The company crossed the INR100 crore mark in consolidated net profit after tax for the first time in 10 quarters, showing a 13% year-on-year growth.
Negative Points
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The AMD division's growth was impacted by order deferment and inventory buildup in the human protection segment, affecting high-value product sales.
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There was a contraction in average selling prices (ASPs) in the Garmenting business due to changes in product mix, particularly with a higher proportion of knit garments.
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The company faces challenges with labor availability and costs, which are expected to rise, necessitating less labor-intensive models.
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The domestic market for AMD products is currently underdeveloped compared to exports, which could pose a risk if international demand fluctuates.
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The Denim division, despite growth, is not expected to return to its previous peak revenue levels due to strategic shifts towards vertical integration.
Q & A Highlights
Q: Can you provide more details on the AMD segment, particularly regarding the human protection segment and any deferred orders? A: The AMD segment is experiencing some inventory buildup with key customers, leading to deferred orders. However, no accounts have been lost, and the situation is expected to normalize in four to six months. We are also developing new accounts in high-value product categories.