Arvind Fashions had a strong performance in the second quarter. The stock in November is up nearly 12 percent. Year-over-year second quarter revenue rose 113% to Rs 812 crore from Rs 382 crore and the loss fell to Rs 98 crore from Rs 212 crore.
Kulin Lalbhai, director of Arvind Fashions, said the good news for the business is that the business is now fully recovered to pre-COVID levels. In the second quarter, power brands grew 140% on a weak basis. In August and September itself, we returned to pre-COVID levels and from the season of Diwali we are seeing healthy growth as consumers are also back in the offline channel, as well as the online channel, that continues to grow.
He said that while they don’t give a revenue forecast, they expect a full recovery. The Diwali season, comparable to that before COVID, saw a strong adolescence, as for comparable growth that they had not seen for a very long time. It shows that consumers are really back in the market and all of the hard work to improve the efficiency and freshness of merchandise has started. So there would be a good scale from the third quarter, he added.
He added, “While we expect the revenue to come back, the main focus of the business is how we drastically improve the bottom line for the business. In fact, we realized a cash profit in the second quarter and we expect that in the second half we should also achieve a positive PBT. So the goal is not just to generate results, yes, but to generate results and constantly improve cash flow by improving working capital. “
Regarding debt, he said, “we expect net debt to be around Rs 600 crore at the end of the year, which is a very healthy number.”
Speaking of emerging brands, he said that the second quarter had an impact on July where the markets were not fully open, but that in the future they see an improvement in emerging brands, and strong brands in particular. are where much of the traction will go into the second half of the year, he says.
For the full discussion, watch the accompanying video