Arvind Fashions Q3 results: Net profit rises multifold at Rs 51 crore

Arvind Fashions Ltd, a leading player in the casual and denim segment, on Tuesday reported multifold rise in consolidated net profit at Rs 51.08 crore for December quarter FY24, helped by gains from sales of Sephora business.

The company had logged a profit of Rs 8.09 crore in October-December FY23, according to a regulatory filing by Arvind Fashions Ltd (AFL).

During the quarter, AFL sold its Sephora business to Reliance Retail and had a gain of Rs 94.28 crore. Also, Arvind Beauty Brands Retail Ltd (ABBRL) ceased to be a subsidiary.AFL's net profit from continuing operations was at Rs 30.12 crore as against Rs 26.39 crore in Q3 last fiscal.

Revenue from operations was at Rs 1,125.05 crore as against Rs 1,072.78 crore in the year-ago period."Growth was primarily led by retail and MBO channel," said an earning statement from the company.

Total expenses in December quarter stood at Rs 1,081.71 crore, higher by 3 percent year-on-year.

During the quarter, revenue growth coupled with gross margin expansion resulted in 18 percent growth in EBITDA to Rs 150 crore compared to Rs 127 crore in Q3 FY23, it added.

Total income was at Rs 1,131.96 crore, up 4 percent year-on-year." Strong financial performance in this quarter reflects the focus on profitable growth with 150 basis points improvement in EBITDA, a growth of 18 percent over Q3 last year," MD & CEO Shailesh Chaturvedi said.AFL operates retail outlets of leading global brands, including U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein and Flying Machine.

Shares of Arvind Fashions on Tuesday settled at Rs 453.55 apiece on BSE, down 2.5 percent.