Arvind Fashions, India’s leading clothing company, has reported a 5 percent increase in revenues for the third quarter of the fiscal 2024 (Q3 FY24), reaching ₹1,125 crore up from ₹1,073 crore in the same quarter of the previous year, alongside a notable two-year revenue CAGR of 12 percent. This growth was primarily attributed to the retail and multi-brand outlet (MBO) channels.
A significant aspect of Arvind Fashions’ success this quarter was its gross margin expansion, which surged by 480 basis points year-on-year (YoY) to 53.3 percent. This improvement was driven by a 2 percent retail like-to-like (LTL) growth, enhanced execution in the retail channel, and a strategy of lower discounting, the company said in a press release.
Furthermore, the company’s EBITDA witnessed an 18 percent growth, reaching ₹150 crore compared to ₹127 crore in Q3 FY23. Despite higher investments in advertising, which increased by 130 basis points YoY, the EBITDA margin improved by approximately 150 basis points.
The profit after tax (PAT) from continuing business, excluding exceptional items, stood at ₹22 crore, marking an 83 percent YoY growth. The reported PAT experienced a significant leap, growing more than sixfold to ₹51 crore from ₹8 crore in Q3 FY23.
“Strong financial performance in this quarter reflects the focus on profitable growth with 150 bps improvement in EBITDA, a growth of 18 percent over Q3 last year. The leadership of our key brands is getting strengthened with our conscious investment in marketing along with product innovation which has yielded differentiated results and market share gain,” said Shailesh Chaturvedi, MD and CEO.
