Arvind Fashions Q1 Profit Drops 24% Despite Sales Rise

Commenting on the performance of the company, Amisha Jain, MD & CEO said that the company has begun the year with a strong operating performance, delivering revenue growth of 15.5 per cent and EBITDA growth of 19.6 per cent.

“This performance is particularly noteworthy given the inflationary environment shaped by the West Asia conflict, higher petroleum prices, elevated forex rates and minimum wage increases across several states, and reflects the resilience of our brand portfolio and the discipline of our operating model,” Jain added.

“Looking ahead, our focus remains on accelerating growth across retail and B2C channels while keeping an eye on the impact of war,” Jain mentioned.

The EBITDA margin improved to 12.5 per cent from 12 per cent in the year-ago period, reflecting better operating efficiency, it added in its filing.

However, total expenses climbed 15 per cent to Rs 1,245 crore during the quarter, impacting the company's bottom line.

Arvind Fashions said the quarter was marked by rising raw material costs, partly triggered by the Iran conflict, which added pressure on input prices.

The company also flagged the continuing geopolitical tensions in West Asia and the impact of El Nino on the monsoon as potential drivers of inflationary pressures in the coming months.

It further cautioned that increasing raw material costs and a weakening rupee could affect future capital expenditure plans.

Following the earnings announcement, shares of Arvind Fashions fell about 3.4 per cent in trade.

The company continues to operate a portfolio of international and premium fashion brands, including Arrow, Calvin Klein and Tommy Hilfiger, along with several other lifestyle labels in the Indian market.