An important aspect of Arvind Fashions' success this quarter was the expansion in its gross margin, which rose 480 basis points year-on-year (YoY) to 53.3 per cent. This improvement was driven by comparable retail (LTL) growth of 2 percent, better execution in the retail channel and a lower discounting strategy, the company said in a press release.
Indian company Arvind Fashions reported a 5 percent revenue growth in Q3FY24 to Rs 1,125 crore, with a notable two-year revenue CAGR of 12 percent, driven by retail and MBO channels. The company's gross margin expanded 480 basis points to 53.3 per cent, driving EBITDA growth of 18 per cent to Rs 150 crore. PAT grew six-fold to ₹51 crore in Q3FY24.
Additionally, the company's EBITDA witnessed a growth of 18 percent, reaching Rs 150 crore compared to Rs 127 crore in Q3 FY23. Despite higher investments in advertising, which increased by 130 points On a year-on-year basis, the EBITDA margin improved by approximately 150 basis points.
Profit after tax (PAT) from continuing business, excluding exceptional items, stood at Rs 22 crore, representing a year-on-year growth of 83 per cent. The reported PAT saw a significant jump, increasing more than six-fold to ₹51 crore from ₹8 crore in Q3FY23.
“The strong financial performance in this quarter reflects the focus on profitable growth with a 150 basis point improvement in EBITDA, an 18 percent growth over the third quarter of last year. “The leadership of our key brands is being strengthened with our conscious investment in marketing along with product innovation, which has produced differentiated results and increased market share,” he said. Shailesh Chaturvedi, MD & CEO.
Fiber2Fashion News Desk (DP)
