During Tuesday’s trading session, the shares of one of India’s top casual and denim players surged nearly 4 percent to Rs. 578.5 on BSE, after reporting Q2 FY25 results with a rise in net profit by nearly 221.4 percent QoQ and 21.6 percent YoY.
With a market cap of Rs. 7,648 crores, the shares of Arvind Fashions Limited opened in the green at Rs. 576.35, up by nearly 3.5 percent, compared to its previous closing price of Rs. 557.15.
What’s the news:
The fluctuations in the share prices were observed after Arvind Fashions Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Monday post-market hours.
For Q2 FY25, Arvind Fashions reported consolidated revenue from operations of Rs. 1,273 crores, reflecting a significant growth of around 33.3 percent QoQ from Rs. 955 crores in Q1 FY25, as well as an increase of about 8.4 percent YoY from Rs. 1,174 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 45 crores, representing a significant increase of around 221.4 percent QoQ from Rs. 14 crores in Q1 FY25, as well as a year-on-year increase of nearly 21.6 percent from Rs. 37 crores in Q2 FY24.
Arvind Fashions reported an EBITDA of Rs. 170 crores for Q2 FY25, reflecting an increase of around 18.5 percent YoY from Rs. 143 crores in Q2 FY24.
Additionally, the EBITDA margin stood at 13.3 percent, up from 12.2 percent during the same period, with an expansion of over 110 basis points, supported by strong cost control.
Management Guidance:
For FY25, Arvind Fashions anticipates double-digit revenue growth with a focus on profitability, while maintaining a focus on cost control and operating leverage to support the expansion of EBITDA and PAT margins.
The company plans to open nearly 150 new stores, and expects to generate higher free cash flow by improving working capital efficiency and adopting an asset-light approach, along with further enhancements in ROCE and ROE.
The company will continue investments in advertisements to drive market
share gains, alongside an increased emphasis on product innovation.
Further, the company expects that demand will recover in the second half of FY25, supported by the festive season and a strong wedding calendar, while premiumization remains a key driver of growth.
Stock Performance:
The stock has delivered positive returns of nearly 68 percent in one year, as well as around 18.3 percent returns in the last six months. So far in 2024, the shares of Arvind Fashions have given positive returns of about 35 percent.
About the company:
Arvind Fashions Limited is engaged in the business of designing, sourcing, marketing and selling branded readymade apparel, footwear, innerwear and other accessories for men, women and kids.
Written by Shivani Singh
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