Arvind Limited Review Note Q th February 2016, Ahmedabad

Transcription

1 Arvind Limited Review Note Q th February 216, Ahmedabad

2 Agenda Performance Review Q3 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis 2

3 Index Performance Review Q3 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis 3

4 Q : Modest Revenue Growth at 4% : PAT lower by 6% Moderate growth in revenues... EBIDTA Lower by 3% Rev, Rs Cr 2,5 2,74 2, 4% 2,157 EBITDA, Rs Cr % 281 Q Q ,5 PAT*, Rs Cr 1, % Q Q Q Q *PAT before exceptional items 4

5 Business Highlights: Q All Figures in INR Crs Q3 FY16 Q3 FY15 Change Revenue from Operations 2,157 2,74 4% Raw Materials Project Expenses 7 18 Employees' Emoluments Others Stock (Increase) / Decrease Forex (Gain) / Loss 1 EBIDTA % Margin 13.% 13.9% Other Income Interest & Finance Cost 9 12 Cash Accruals % Depreciation Profit Before Taxes % Tax Profit After Tax % Less : Exceptional Item 1 2 Net Profit % Key highlights Revenue growth of 4% 12% growth in Brands & Retail Lower EBIDTA & Margin : While all businesses have individually performed as well or better than comparable quarter, the lower margin is explained by; Increased share of lower margin business (Brands & Retail & Garments) Exclusion Real Estate Business (due to demerger from April 16) Increased pre-operative costs in garments Lower denim volumes PBT Flat & PAT lower on account of higher tax provision 5

6 Textile Revenue growth flat due to lower denim sales : Brands & Retail sales growth healthy at 12% Revenues in Rs. cr Textiles Brands & Retail 1,4 7 1,275 % 1, % Q Q Textiles revenues remained flat due to 14% lower volumes in Denim Business 5% Growth in Woven revenues 8% Growth in Garment revenues Q Q Growth of 12% achieved due to robust growth of 22% achieved in Brands & Retail Business (excluding MegaMart) MegaMart recorded negative growth of 16% on account of planned store closures and rains in South *Without Arvind Internet Business 6

7 Margin expansion in B & R Business; Textile Margins maintained EBITDA (%) EBITDA % Textiles Brands & Retail 2 18.% 18.% MM 3.4%, Other 8.5% 7.% 7.6% MM 3.1%, Other 8.4% 15 1 Q Q Q Q *Without Arvind Internet Business 7

8 Key Financial Ratio Particulars Q M EPS (Annualised) Debt / Equity Debt / EBIDTA ROCE 14.1% 14.% 13.1% ROE 14.5% 14.6% 12.1% Revenue Growth 14.4% 4.% 5.5% 8

9 Index Performance Review Q3 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis 9

10 Financial Performance Q All Figures in INR Crs Q3 FY16 Q3 FY15 Change Revenue from Operations 1,344 1,33 1% Raw Materials Project Expenses 3 2 Employees' Emoluments Others (Increase) / Decrease in Stock Foreign Exchange Loss /(Gain) -2 EBIDTA % Margin 15.4% 16.7% Other Income Interest & Finance Cost Cash Accruals % Depreciation Profit Before Taxes % Tax 31 3 Profit After Tax % Less : Exceptional Item 1 2 Net Profit % 1

11 Index Performance Review Q3 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis 11

12 Textiles Business Rev, Rs Cr % 1,4 1,275 1, , , Knits Voiles Garments Wovens Denim Rev. Growth % 13% 12% 8% 5% -11% Textile revenues flat Due to 11% lower revenues in Denim 8% growth in Garments 5% growth in Wovens 12% growth in Voiles Internal sale -2 Q Q

13 Volume growth: Wovens volume growth at 8% : Denim Volumes reduced by 14% Denim Wovens (Shirting & Khaki) Q3 comparison Vs LY Volume, Mn Mtrs % 23.1 Volume, Mn Mtrs % 32.1 Q Q Q Q Lower volume growth explained by unusually high volume sales in Q3 last year 9M comparison Vs LY Volume, Mn Mtrs % 75.1 Volume, Mn Mtrs % M M M M Lower volume growth explained by significant product mix changes effected by the company 13

14 Key Parameters: Q Textiles Denim Woven Q Q Q Q Exports(Mn Mtrs) Domestic (Mn Mtrs) Avg Prices Major Components Cotton Cost in Rs / Kg

15 Brands & Retail Business grew topline by 12% in Q Strong revenue growth Key highlights Rev, Rs Cr % 739 Revenue growth of 12% achieved due to 22% revenue growth in Brands /other formats De-growth of 16% in Mega-mart Business (planned de-grwoth due to store closures and rains in South India during festive season) 4 3 Like to Like growth Brands with 1.7% LTL growth MegaMart (-)13.9 % LTL growth 2 Q Q *Without Arvind Internet Business 15

16 EBITDA % EBITDA Rs Cr Revenue Rs Cr Strong performance of Power Brands Power brands Revenues Rs Cr % 415 EBITDA Rs Cr 6 13% EBITDA % 13% Q Q Q Q ,5 1, % 1,141 EBITDA Rs Cr % 11 13% 146 EBITDA % M M Q Q Revenue Growth 15% and EBIDTA Margin at ~13%. 1. Note: Tommy Hilfiger numbers reflect 5% Arvind share of the JV company 16

17 Brands & Retail Business Distribution Q Q Q Q Particulars Stores Sq Ft Stores Sq Ft Stores Sq Ft Stores Sq Ft Megamart , , , ,462 Others , , , ,361 Total 951 1,589, ,525, ,595, ,595,823 No of KA Exclusive Counters Sales Increase in Key Account Counters: Growth of 25.4% in Q

18 Outlook Revenue Growth for the Q4 likely to be between 9-1% primarily driven by growth in brands & retail business and Garments manufacturing : Revenue Growth in Textiles 2-3% Revenue Growth in Brands & Retail at about 28-29% EBIDTA margins for Brands & Retail Segment likely to sharply improve in Q4 on account of improved operating leverage. 18

19 Thank You!