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All-round Performance Boosts Arvind Ltd.’s Results In Q4 FY24

• By  Textile Excellence
• May 07, 2024

Highlights for Q4 FY2023-24:

§  Overall revenues stood at Rs 2,075 Crore a growth of 10%

§  Record EBITDA of Rs 243 Crore a growth of 27%, margin up 11.7%

§  Highest PAT in past seven quarters of Rs 99 Crore, a growth of 19%.

§  AMD revenue at all-time high at Rs 387 Crore, EBITDA Rs 61 Crore

§  Net long-term debt at Rs 399 Crore & ROCE improved to 14.8%

Arvind Limited announced its financial results for the fourth quarter and full Financial Year 2023-24. The company registered all-round strong operational and financial performance in Q4 of FY24. The strategy of verticalization through One Arvind, product mix optimization and business model transition to a customer-centric approach are cited as prime reasons enabling growth and delivering tangible results.

Business Highlights for Q4 & FY2023-24

During quarter four of FY24, Arvind Ltd performed strongly amidst sustained challenges in the global geopolitics and macro-economic environment. Company’s business volumes across Textile segments and Advanced Material division (AMD) clocking a healthy growth. The Denim segment registered a 13% growth, Garments registered 41% growth and AMD’s product volume witnessed 17% growth.

This volume growth led to a healthy revenue growth in Q4 as well. Overall revenue for the quarter stood at Rs 2075 Crore against Rs. 1881 Crore in Q4 FY23, which is a growth of 10% on a YoY basis. On the other hand, full year FY24 revenue stood at Rs 7738 Crore. Revenue for Q4 and full year FY24 includes proceeds from sale of land (Forreste Project) of Rs 32 Crore.

Arvind also registered a record EBITDA, during the quarter, of Rs 243 Crore which is a growth of 27% on a YoY basis backed by growth in volume and operational efficiency. Full year EBITDA grew 6% YoY basis and reached a milestone of Rs 845 Crore which include Rs 6 Crore profit from sale of land.

Improvement of margin in Textile segment resulted due to lower input costs and improvement in efficiencies in Garments division. Also, operating leverage in AMD led to improvement in overall EBITDA margin to reach 11.7% in Q4 FY24.

Company’s Profit after tax (PAT) during the quarter was in line the growth in revenue and stood at Rs 99 Crore with a growth of 19% on YoY basis. Full year PAT stood at Rs 334 Crore.

During the Q4 FY24, Textile Division revenue stood at Rs 1504 Crore with an EBITDA of Rs 173 Crore and improved EBITDA margin of 11.5%. The Textile Division revenue and EBITDA for the full year FY24 stood at Rs 5,803 Crore and Rs 643 Crore respectively.

The AMD delivered its highest ever revenue of Rs 387 Crore in Q4 FY24 a growth of 21% compared to Q4 FY23. This resulted in highest ever EBITDA of Rs 61 Crore for the AMD in a quarter with a growth of 31%. For the full year of FY24, AMD business registered revenue of Rs 1428 Crore and EBITDA of Rs 222 Crore which is a growth of 14% and 35% respectively.

Based on the results, the Board of directors recommended a dividend of Rs 4.75/- per equity share for FY 2023-24 which is subject to approval.

Consolidation of AMD businesses

Arvind Ltd plans to house all the businesses namely Human Protection, Industrial and Composite units through step down subsidiaries under a scheme of arrangements, which is effective from 01st of April 2024. Accordingly, all business units currently reported in Advanced Material Division (AMD) of Arvind Ltd is getting consolidating under one umbrella structure “Arvind Advanced Material Ltd” (AAML).

The new structure is an internal realignment of businesses & entities to address growth imperatives and take advantage of new opportunities thus does not change the consolidated view of Arvind. It will continue to receive support from Arvind Ltd for both organic and inorganic growth.

Coal Free Boiler at Naroda Denim Plant

In line with the Arvind’s mantra for sustainability, the company is aligning its everyday life with the sustainable development goals. During the FY24, Arvind’s denim plant at Naroda commissioned a biomass-based boiler which will reduce emission by 50,000 tons of CO₂ per year and enable the plant to operate coal free. This is in addition to the other ongoing sustainability programs related to water, energy, chemical usage and farm projects.

During quarter four of FY24, Arvind Ltd performed strongly amidst sustained challenges in the global geopolitics and macro-economic environment. Company’s business volumes across Textile segments and Advanced Material division (AMD) clocking a healthy growth. The Denim segment registered a 13% growth, Garments registered 41% growth and AMD’s product volume witnessed 17% growth