Arvind Fashions reported a consolidated net loss of Rs 52 crore in Q3 December 2019 as against a net profit of Rs 6.95 crore posted in Q3 December 2018.Net sales declined 9.8% to Rs 1135.45 in Q3 December 2019 over Q3 December 2018. The company announced its Q3 December 2019 result during market hours today, 11 February 2020.
The company reported a pre tax loss of Rs 80.9 crore in Q3 December 2019 as against a pre-tax profit of Rs 15.02 crore in Q3 December 2018.
Arvind Fashions said it made further progress in the steps already underway towards its stated intention of exiting non-strategic emerging brands, reducing exposure to long payment-cycle customers and aligning primary sales with secondary sales. This continued correction, coupled with ongoing consumption slowdown, adversely impacted the reported Q3 FY20 revenues and profitability on a year on year basis.
Commenting on the financial performance of the company, J Suresh, Managing Director and Chief Executive Officer said, We have completed the exit of non-strategic brands and have aligned primary and secondary sales. While external environment continues to stay challenging, we are confident that the steps undertaken during this year will have positive effect on sales growth & profitability going forward and shall further strengthen the fundamentals of our business.
During Q4 March 2020, the company will continue to focus on working capital efficiency through continued disciplined efforts around reduction in debtors and inventory. Operationally, the company will continue to focus on taking the required in-market actions to improve secondary sales, add to our retail presence, expand online sales and drive accelerated growth in our leadership categories across premium casual and denim wear, kids wear, innerwear and prestige beauty. The firm's capability build-up in analytics for demand planning and fulfillment as well as Omni channel is continuing and will contribute to growth, profitability and capital efficiency. The firm said it continues to remain optimistic about the future of its business as it takes necessary actions to make the company future ready with right capabilities and fit for profitable growth.
Arvind Fashions is India's no. 1 casual and denim player, a lifestyle powerhouse with a strong portfolio of fashion brands catering to consumers across the sub-categories and price point. The company owns renowned brands like US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora.
Shares of Arvind Fashions jumped 5.06% at Rs 372.55 on BSE.
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