Q3 2024 Arvind Fashions Ltd Earnings Call Transcript
Key Points
- Arvind Fashions Ltd (BOM:542484) achieved a 5% sales growth in Q3 FY24, demonstrating resilience despite a subdued demand environment.
- The company saw a 150-basis point improvement in EBITDA margin, even with a 130 basis point increase in marketing costs.
- Offline channels, particularly retail and MBO, showed double-digit growth, driving overall revenue and EBITDA gains.
- The B2C online channel nearly doubled in revenue, indicating strong consumer sales growth.
- The company reduced its gross working capital by five days, reflecting improved balance sheet management.
- The online B2B channel experienced a significant de-growth, impacting overall revenue growth.
- The Diwali festival sales were negatively affected by the Cricket World Cup, leading to flat like-to-like growth during the period.
- The company had to participate in an early end-of-season sale to liquidate inventory, which could indicate inventory management challenges.
- There was a noticeable increase in operating expenses, rising by 14% compared to a 5% increase in revenue.
- The company is still in the process of de-stocking its online B2B channel, which may continue to affect short-term revenue.
Ladies and gentlemen, good day, and welcome to the Q3 FY24 earnings conference call of Arvind Fashions Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ankit Arora, Head - Investor Relations & Treasury. Thank you, and over to you, sir.
Thank you, Michelle. Hello, welcome everyone, and thank you for joining us on Arvind Fashions Limited earnings conference call for the third quarter and nine months ended December 31, 2023. I am joined here today by Kulin Lalbhai, Vice Chairman and Non-Executive Director; Shailesh Chaturvedi, our Managing Director and CEO; and Girdhar Chitlangia, Chief Financial Officer.
Please note that results, press release, and earnings presentation had been mailed across to you yesterday, and these are also available on our website, www.arvindfashions.com. I hope you had the opportunity to browse through the
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