Q2 2025 Arvind Ltd Earnings Call Transcript
Key Points
- Arvind Ltd (BOM:500101) reported a 14% growth in revenue for Q2 FY25, reaching INR 2,188 crores, marking the highest quarterly revenue in the past nine quarters.
- The company achieved a 20% increase in profit before tax, reaching INR 135 crores, despite challenges in the macro environment.
- Arvind Ltd's textile division showed strong performance with an EBITDA margin of 10.3%, supported by volume growth and a stable product mix.
- The advanced material division reported a revenue growth of nearly 10% and maintained a margin of 15.3%, with expectations of further growth in the coming quarters.
- The company is on track with its capital management plan, having spent 40% of its annual CapEx plan to augment garmenting and AMD capacity, indicating a focus on future growth.
- Higher logistics costs, particularly air freight, impacted the company's EBITDA, with a spillover cost of INR 11 crores.
- Fixed costs, including salaries, increased during the quarter, affecting overall profitability.
- Deferred tax adjustments eroded the profit after tax, with a one-time impact of INR 29 crores.
- The human protection segment within the advanced material division faced lower-than-expected demand from a major customer, impacting growth.
- The company anticipates being slightly short of its garment volume target for the year, indicating potential challenges in meeting demand expectations.
Ladies and gentlemen, good day and welcome to the Arvind Limited Q2 FY25 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone and thank you for participating in today's call to discuss the financial results for the second quarter and half year ended '24, '25 for Arvind Limited. With me, today is Mr. Punit Lalbhai, the Vice Chairman; Mr. Jayesh Shah, Director and the Board and Group CFO; Mr. Susheel Kaul, our Managing Director and President of Textile Business; and the Chief Financial Officer of Arvind Limited, Mr. Nigam Shah.
The financial results and related presentations were uploaded to our website. I hope you had enough time to go through it. I'm happy to report that we are back on a growth path again after a slow start in quarter one. We have been able to make up some of the ground that we lost in quarter one, which is positive. For the first time in
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