Q3 2025 Arvind Ltd Earnings Call Transcript
Key Points
- Arvind Ltd (BOM:500101) reported double-digit growth in both revenue and profitability, reinforcing its position as a leader in the textile industry.
- The Woven Fabric segment achieved its highest volume in three years, with a 7% year-on-year growth, driven by 100% capacity utilization.
- The Garmenting division saw a 21% year-on-year growth in garment volume, reaching 9.3 million pieces, with a focus on knitted products.
- The AMD division posted a 9% growth, with a stable EBITDA margin of 15%, despite challenges in product mix and order deferment.
- The company crossed the INR100 crore mark in consolidated net profit after tax for the first time in 10 quarters, showing a 13% year-on-year growth.
- The AMD division's growth was impacted by order deferment and inventory buildup in the human protection segment, affecting high-value product sales.
- There was a contraction in average selling prices (ASPs) in the Garmenting business due to changes in product mix, particularly with a higher proportion of knit garments.
- The company faces challenges with labor availability and costs, which are expected to rise, necessitating less labor-intensive models.
- The domestic market for AMD products is currently underdeveloped compared to exports, which could pose a risk if international demand fluctuates.
- The Denim division, despite growth, is not expected to return to its previous peak revenue levels due to strategic shifts towards vertical integration.
Ladies and gentlemen, good day and welcome to the Arvind Limited Q3 FY25 earnings conference call. (Operator instructions)
I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir.
Good afternoon, everyone, and thank you for participating in today's call to discuss the financial results for the third quarter and nine months of the financial year '24, '25 for Arvind Limited. On behalf of the management team of Arvind Limited, let me wish you all a very prosperous and new year of 2025 ahead.
Joining me today is Mr. Punit Lalbhai, the Vice Chairman; Mr. Jayesh Shah, Director in the Board and Group CFO; Mr. Susheel Kaul, our Managing Director and President, Textile Business; and the Chief Financial Officer of Arvind Limited, Mr. Nigam Shah. Punit, sir, also will introduce you to our new CEO of AMD Business later on. The financial results for the quarter and related presentations were uploaded to our website. Hope you had enough time to go through it.
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