Arvind Fashions is buzzing loud today on the back of its very good show for Q2FY24. The stock, which had closed yesterday at Rs.366.70, opened slightly higher today at Rs.368.30 and rose over 4.5% to hit a new 52-week high at Rs.383.25.
The salient features of its earnings for Q2FY24 are as under:
- Revenues grew by 7% to Rs. 1,267 crore and this was despite slower consumer demand. Growth was largely led by retail and MBO channel.
- The company’s Gross margins expanded by 510 bps to 49.5% led by retail LTL growth of 9% and higher retail channel mix by 400 bps.
- Steady improvement in power brands led EBITDA margin of 13.2%, up 50bps and this was despite higher advertising spends.
- The company posted its highest ever PAT of Rs. 22 crore, growth of 19%.
- Also tighter control over inventory & debtors led to reduction in gross working capital by 10 days.
- Its Return on capital employed (TTM) stood at 14%.
Arvind Fashions is India's no. 1 casual and denim player, with a portfolio of fashion brands like U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein and Flying Machine.