Q1 2025 Arvind Fashions Ltd Earnings Call Transcript
Key Points
- Arvind Fashions Ltd (BOM:542484) reported double-digit revenue growth and a 1.5% like-for-like retail growth in Q1 FY25.
- EBITDA increased by 100 basis points, with a value growth of nearly 20%, reaching INR123 crores.
- The company saw growth across all brands and channels, with a significant 15% growth in wholesale channels.
- Online direct-to-consumer business grew more than 60% year-on-year, contributing to higher channel profitability.
- Gross Profit (GP) improved by 80 basis points to 55.2%, driven by better price realization and efficient product costs.
- Market conditions were challenging due to elections, a peak heat wave, and fewer wedding dates, impacting traffic across offline and online channels.
- Like-for-like retail sales growth was subdued at 1.5%, below the company's normal expectation of above 5%.
- The company delayed its End of Season Sale (EOSS), which impacted short-term revenue.
- Arrow and Flying Machine brands are still in the process of re-energization, with Arrow at low single-digit EBITDA and Flying Machine close to breakeven.
- The company's net debt stood at INR225 crores, with expectations of a slight increase in the next quarter due to inventory build-up for the season.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of Arvind Fashions. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. Ankit Arora. Thank you, and over to you, sir.
Thanks Viya. Hello and welcome everyone and thank you for joining us on Arvind Fashions Limited earnings conference call for the first quarter ended June 30, 2024. I am joined here today by Mr. Shailesh Chaturvedi, our Managing Director and CEO; and Mr. Girdhar Chitlangia, Chief Financial Officer.
Please note that result 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 highlights of the performance. We will start with Shailesh covering the business highlights and financial performance. And post that at
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