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Arvind Fashions posts consolidated net profit of Rs 21.30 crore in Q4

FY19 saw the apparel maker's business segments, including power brands, specialty retail and emerging brands, post a healthy growth

Lifestyle, garments, clothes

Arvind Fashions Ltd, the recently de-merged entity of Arvind Ltd, posted a consolidated net profit of Rs 21.30 crore for the fourth quarter (Q4) ended March 31, 2019, according to its BSE filing on Thursday. The company's total consolidated income for Q4FY19 stood at Rs 1,168.98 crore.

In October 2018, the National Company Law Tribunal (NCLT) had approved the demerger of Arvind Limited's apparel brand to create Arvind Fashions Limited. All assets, liabilities, income and expenses of the brand had been transferred to the newly formed entity. Consequently, the current quarter and year-end numbers are not comparable with the corresponding periods of previous years. 

In FY18, Arvind Fashions had posted a consolidated net profit of Rs 23.46 crore and total income of Rs 1,159.44 crore. The company reported a consolidated net profit of Rs 21.48 crore and total income of Rs 4647.99 crore in FY19.

FY19 saw the apparel maker's business segments, including power brands, specialty retail and emerging brands, post a healthy growth. Among these, the power brands segment, comprising brands like the flagship US Polo Association, Arrow, Flying Machine and Tommy Hilfiger, accounted for revenue growth of nine per cent at Rs 2,797 crore.

Specialty retail, comprising Unlimited, GAP and Sephora, reported 17 per cent growth at Rs 1110 crore, while the emerging brands segment, with names like Calvin Klein and Aeropostale, grew 5 per cent to Rs 737 crore.

According to Arvind Fashions Ltd's BSE filing, the company saw its flagship line, US Polo Association, emerge as a Rs 1,000-crore brand with its innerwear sales doubling. The company's four categories registered healthy growth in FY19 -- led by innerwear at 54 per cent, prestige beauty at 35 per cent, kidswear by 25 per cent and casuals/denim by 20 per cent. 

At the end of FY19, Arvind Fashions' power brands had a store count of 1,018 across 890,000 sq ft, after a net addition of 78 stores during the financial year. The company's 107 Unlimited stores occupy 1.08 million sq ft and 35 specialty retail stores occupy 150,000 sq ft.

Arvind Fashions Ltd said that it would remain focused on driving improved profitability, along with increasing discipline around cash generation and consolidation of its Unlimited business during FY20. The company also plans to focus on a continuous evaluation of its brand portfolio to optimise returns and profitability in the future. "Power brands and other selected lines will continue to grow on the back of increased investments in both marketing and channel expansion in tier 2 & 3 cities," it further stated.