Q2 2025 Arvind Fashions Ltd Earnings Call Transcript
Key Points
- Arvind Fashions Ltd (BOM:542484) achieved its highest sales and EBITDA despite a muted demand environment, with sales growing by 8.5% and EBITDA by 18%.
- The company reported a healthy 4.6% like-to-like growth in its retail channel and around 20% growth in the online channel.
- Arvind Fashions Ltd (BOM:542484) focused on profitable growth, resulting in improved balance sheet and cash flow metrics, with inventory turns improving to more than four times.
- Significant investments in brand marketing and advertising led to new customer acquisition and market share gains.
- The company increased its retail square footage by 81,000 square feet in H1, adding 56 new stores, and plans to continue expanding its footprint by 15% annually.
- The wholesale channel experienced tepid growth, attributed to muted market conditions and pruning of low-margin distribution points.
- Despite improvements in channel margins, the gross margin remained flat at 50.4% due to a change in channel mix, with a higher share of lower-margin online B2B sales.
- The company faced challenges in maintaining profitability for certain brands, such as Arrow and Flying Machine, which are currently at lower profit trajectories.
- There was a slight increase in receivables due to higher billing in the wholesale channel during the festive season.
- The company is still in the early stages of investment and growth for its Flying Machine brand, requiring further efforts to enhance its market position and profitability.
Good day and welcome to Irvin Fashions Limited Q2 FY25 earnings conference call as a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should, should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Ankit Arora Head of Investor Relations. Thank you and over to you, sir.
And thank you for joining us on Arvind Fashions limited Earnings conference call for the second quarter and half year ended, September 30th 2024. I'm joined here today by Kulin LBA Vice Chairman and Nonexecutive director.
She Chatur, our managing director and CEO and G Chang, our Chief Financial Officer.
Please note that results press release and earnings presentation had been mailed across to you yesterday and these are also
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