SSPL WEALTH PVT LTD

Hot Pursuit

Scrips, which has significant changes during the market hours.

Arvind Q4 PAT rises 13% YoY to Rs 104 cr

06-May-24 15:29 Hrs IST

Profit before tax grew by 27.77% year on year to Rs 138.22 crore during the quarter.

EBITDA in Q4 FY24 was at Rs 243 crore, up 27% from Rs 191 crore recorded in Q4 FY23. EBITDA for Q4 FY24 includes profit on account of sale of land (Foreste Project) of Rs 6 crore.

Improvement of margin in Textile due to lower input costs, improvement in efficiencies in Garments division and operating leverage in AMD led to around 156 bps, improvement in overall EBITDA margin to reach 11.7% in Q4 FY24.

During Q4 FY24, a strong performance was delivered by the company, as guided during earlier quarters, amidst sustained challenges in the global geopolitics and macroeconomic environment, with volumes across segments of textile and advanced material division (AMD) clocking a healthy growth. While denim registers a 13% growth, full garments registers 41% growth and, AMD combined product volume registers 17% growth.

Textile division revenue stood at Rs 1,504 crore with an EBITDA of Rs 173 crore translating into the EBITDA margin of 11.5%. Textile margin improved by 200 bps on a YoY basis on account of softening of input costs, efficiency gains in garmenting and better product and customer mix.

AMD delivered its highest ever revenue of Rs 387 crore in Q4 FY24 a growth of 21% compared to Q4 FY23. Volume and revenue growth resulted in highest ever EBITDA reported of Rs 61 crore for the AMD in a quarter, which is a growth of 31%. Operating leverage helped in achieving highest ever EBITDA margin of 15.8%. EBITDA margin improved by 131 bps on a YoY basis.

On a full year basis, the company's consolidated net profit declined 15.38% to Rs 352.63 crore on 7.69% decrease in revenue to Rs 7,737.75 crore in FY24 over FY23.

Long-term debt at the end of FY24 has come down further by Rs 34 crore from December 2023 levels to close at Rs 399 crore. Total net debt stood at Rs 1,250 crore compared to Rs 1,327 crore in March 2023.

Explaining its guidance for FY25, the company said, ?We expect FY25 to deliver a strong set result across key parameters of volume and revenue resulting in growth in EBITDA with healthy margins and returns. We expect to grow our traditional textile business at a more secular rate aligned to GDP, while the AMD business is expected to grow at 20% CAGR.

A new path in our growth journey is being charted with a discrete and discretionary Capex program for next three years till FY27, of which Rs 400 ? Rs 450 crore is budgeted for FY25. The investments will go towards capacity increase in AMD, Garments and augment product differentiation capabilities & maintenance in Fabric business. The capex also includes investment in sustainability programs like renewable energy, which will help Arvind?s the share of renewable power to improve from current 47% to go close to 90%. The capex plan will be funded mostly from internal accruals. Our long term debt will remain at similar levels.?

Meanwhile, the company?s board has recommended a final dividend of Rs 3.75 per share and one-time special dividend of Re 1 per share, totaling to a dividend of Rs 4.75 per equity share for FY24. The dividend will be paid/dispatched to the shareholders within 30 days of declaration.

Arvind is one of India?s leading vertically integrated textile company with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and others.

The scrip fell 0.87% to currently trade at Rs 331.05 on the BSE.