Arvind Limited Q2 Review Note 5 th November 2015, Ahmedabad

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1 Arvind Limited Q2 Review Note 5 th November 215, Ahmedabad

2 Contents Performance Review Q2 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis Outlook 2

3 Contents Performance Review Q2 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis Outlook 3

4 Q : Consolidated Revenue up 7% and EBITDA up 8%; PAT lower by 2% Moderate growth in revenues......as well as EBITDA margins Rev, Rs Cr 2,5 2, 1,965 7% 2,96 EBITDA, Rs Cr % 261 Q Q ,5 PAT*, Rs Cr -2% 1, Q Q Q Q *PAT before exceptional items 4

Business Highlights: Q2 215-16 Moderate top-line growth All Figures in INR Crs Q2 FY16 Q2 FY15 Change Revenue from Operations 2,96 1,965 7% RawMaterials 1,15 1,154 Project Expenses 8 2 Employees'

5 Business Highlights: Q Moderate top-line growth All Figures in INR Crs Q2 FY16 Q2 FY15 Change Revenue from Operations 2,96 1,965 7% RawMaterials 1,15 1,154 Project Expenses 8 2 Employees' Emoluments Others Stock (Increase) / Decrease Forex (Gain) / Loss 1 EBIDTA % Margin 12.5% 12.3% Other Income 32 3 Interest & Finance Cost Cash Accruals % Depreciation Profit Before Taxes % Tax Profit After Tax % Less : Exceptional Item 4 3 Net Profit % Key highlights Revenue growth of 7% 9% growth in Brands & Retail 5% growth in Textiles PBT growth of 15%: PAT lower on account of higher tax provision Exceptional items: Rs. 3.8 crs for retrenchment of workers 5

6 Strong growth in Revenue of Brands despite difficult market conditions: Garments Revenue Growth at 3% Revenues in Rs. cr Textiles Brands & Retail 1,4 7 1,214 5% 1, % 75 3 Q Q Q Q Textiles grew by 5% due to healthy growth of 3% in garments and 2% Revenue growth in Denim Business 4% Revenue growth in Wovens Business Robust growth of Power brands (17%) and other brands (21%) led to 9% overall growth of brands & retail business despite Negative revenue growth (-2%) of MegaMart *Without Arvind Internet Business 6

7 Margin expansion in B & R Business; Fall in Textiles Margin due to increased share of Garments in Revenue EBITDA (%) EBITDA % Textiles Brands & Retail % 17.2% MM.9%, Other 6.8% 5.4% 6.7% MM -7.3%, Other 9.2% 15 1 Q Q Q Q Margin Lowered by.6% due to Increase share of Garments in overall revenue Lower capacity utilization of woven fabrics Margin Improved by 1.3% mainly due to ; Operating leverage in power brands Strong performance of new acquired brands *Without Arvind Internet Business 7

8 Consolidated Balance Sheet, as at Sept 3 th 215 As at 3th Sept'15 3th June'15 Shareholders' Fund Share Capital Reserves and Surplus Non Current Liabilities Shortterm Borrowings Current Liabilities Minority Interest Total Assets Fixed Assets Non -Current Investment Long Term Loans and Advances Other Non Current Assets 9 13 Current Assets Total

9 Key Financial Ratios Particulars H H EPS (Annualised) Debt / Equity Debt / EBIDTA ROCE 13.8% 14.1% 12.8% ROE 14.5% 14.5% 11.3% Revenue Growth 16.5% 14.4% 6.3% 9

10 Contents Performance Review Q2 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis Outlook 1

11 Financial Performance Q All Figures in INR Crs Q2 FY16 Q2 FY15 Change Revenue from Operations 1,336 1,268 5% RawMaterials Project Expenses 3 2 Employees' Emoluments Others (Increase) / Decrease in Stock Foreign Exchange Loss /(Gain) -1 EBIDTA % Margin 15.% 15.4% Other Income Interest & Finance Cost Cash Accruals % Depreciation Profit Before Taxes % Tax 36 2 Profit After Tax % Less : Exceptional Item 4 3 Net Profit % 11

12 Standalone Balance Sheet, as on Sept 3th 215 As at 3th Sept'15 3th June'15 Shareholders' Fund Share Capital Reserves and Surplus Non Current Liabilities Shortterm Borrowings Current Liabilities Minority Interest Total Assets Fixed Assets Non -Current Investment Long Term Loans and Advances Other Non Current Assets 5 5 Current Assets Total

13 Contents Performance Review Q2 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis Outlook 13

Textiles Business: Revenues stable in denim and wovens, 29% growth in garments Rev, Rs Cr 5% 1,4 1,278 1,214 71 7 1,2 9 1 1, 174 224 8 468 485 6 4 Knits Voiles Garments Wovens Rev.

14 Textiles Business: Revenues stable in denim and wovens, 29% growth in garments Rev, Rs Cr 5% 1,4 1,278 1, , , Knits Voiles Garments Wovens Rev. Growth % % -1% 29% 4% Textile revenue grew by 5% Led by 29% growth in Garments 4% growth in Wovens 2% growth in denim Denim 2% Internal sale -2 Q Q

15 Volume growth: Wovens volume growth at 6% : Denim Volumes flat Denim Wovens (Shirting & Khaki) Q2 comparison Vs LY Volume, Mn Mtrs % 25.6 Volume, Mn Mtrs % 28.4 Q Q Q Q H1 comparison Vs LY Volume, Mn Mtrs % 52. Volume, Mn Mtrs % 55.7 H H H H

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

17 Brands & Retail Business grew topline by 9% in Q Strong revenue growth Key highlights Rev, Rs Cr % 75 Revenue growth of 9% achieved due to 18% revenue growth in Brands /other formats De-growth of 2% in Megamart Business 6 5 Like to Like growth Brands with (-).9% LTL growth 4 MegaMart (-)18.9% LTL growth 3 2 Q Q *Without Arvind Internet Business 17

18 Strong performance of Power Brands Power brands Revenues Rs Cr % 446 EBITDA Rs Cr 8 EBITDA % 14.4% % Q Q Q Q EBITDA % EBITDA Rs Cr Revenue Rs Cr Revenue Growth 17% and EBIDTA Margin grew from 1.4% to 14.4% 1. Note: Tommy Hilfiger numbers reflect 5% Arvind share of the JV company 18

19 Brands & Retail Business Distribution Q Q Q Particulars Stores Sq Ft Stores Sq Ft Stores Sq Ft Megamart , , ,496 Others , , ,253 Total 951 1,589, ,525, ,595,749 No of KA Exclusive Counters Sales Increase in Key Account Counters: Growth of 16% in Q

20 Contents Performance Review Q2 FY Financial Performance : Consolidated Financial Performance : Standalone Business Analysis Outlook 2

21 Outlook Revenue Growth in H2 likely to be between 1-12% primarily driven by growth in brands & retail business and Garments manufacturing : Revenue Growth in Textiles 3-4% Revenue Growth in Brands & Retail at about 22-24% EBIDTA margins for Textile Segment and Brands & Retail Segment likely to improve in H2 on account of improved operating leverage. 21

22 Thank You!

Arvind Limited Performance Review Note Q4 FY th May 2015, Ahmedabad

Arvind Limited Performance Review Note Q4 FY 214-15 14th May 215, Ahmedabad 1 Agenda Financial Performance: Consolidated Financial Performance: Standalone Business Analysis 2 Agenda Financial Performance: