Arvind Fashions Limited, a leading lifestyle company in India, has reported revenue from operations of Rs. 4,421 cr in fiscal 2023 (FY23), marking a significant rise from the Rs. 3,056 cr reported in FY22. The company’s total income for FY23 stood at Rs. 4,474 cr, compared to Rs. 3,123 cr for FY22. Other income was registered at Rs. 53 cr, slightly lower than the previous fiscal’s Rs. 67 cr.
Moreover, Arvind Fashions also experienced a substantial uptick in its earnings before interest, taxes, depreciation, and amortisation (EBITDA), which rose to Rs. 505 cr in FY23 from Rs. 247 cr in FY22, the company said.
Reflecting the company’s increased profitability, profit before tax (PBT) rebounded to Rs. 128 cr after posting a loss of Rs. 110 cr in the previous year. Similarly, the company reported a profit after tax (PAT) of Rs. 37 cr, a remarkable turnaround from a loss of Rs. 267 cr in FY22.
The company’s power brands witnessed a growth rate of 46 percent, contributing Rs. 3,623 cr in FY23, up from Rs. 2,475 cr in FY22. The EBITDA for power brands surged to 12.6 percent, up from 9.5 percent in FY22. The emerging brands, on the other hand, reported a 37 percent increase in revenue, reaching Rs. 798 cr in FY23 from Rs. 581 cr in FY22. The EBITDA margin for emerging brands also improved to 5.9 percent, up from 2 percent in FY22. The total sales EBITDA percentage improved from 8.1 percent in FY22 to 11.4 percent in FY23.
In the fourth quarter (Q4) of FY23, revenues grew by 24 percent to Rs. 1,140 cr compared to Rs. 917 cr in Q4 FY22. This growth was largely due to strict discipline in retail operations leading to a robust retail like-to-like (LTL) growth of 17 percent and a robust growth in other offline channels. Power brands revenues registered a growth of 26 percent, leading to a strong improvement in its EBITDA margins by 120 bps. U.S. Polo Assn. continued its dominance in the casual lifestyle category, with a significant momentum in its journey towards 2,000-plus cr net sales value (NSV). The EBITDA in Q4 FY23 rose by 47 percent to Rs. 138 cr compared to Rs. 94 cr in Q4 FY22.
“Our differentiated brand proposition across multiple categories and channels continued to attract robust consumer demand, resulting in company crossing milestone of Rs. 4,000 cr NSV and an improved financial performance across all metrics during FY23. We continue to expand our reach across the country and remain excited about the future potential to capture significant growth opportunities that lie ahead along with sharper focus on improving profitability further and generate higher return on capital employed (ROCE),” said Shailesh Chaturvedi, Managing Director and CEO.
