ARVIND FASHIONS 2023-24 Annual Report Analysis

Mon, 29 Jul

ARVIND FASHIONS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ARVIND FASHIONS Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.1% in FY24 as against 10.7% in FY23.
• Depreciation charges increased by 13.3% and finance costs increased by 15.3% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year declined by 2.4% YoY.
• Net profit margins during the year declined from 2.7% in FY23 to 2.5% in FY24.

ARVIND FASHIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,695	42,591	4.7%
Other income	Rs m	503	337	-33.0%
Total Revenues	Rs m	41,198	42,929	4.2%
Gross profit	Rs m	4,374	5,162	18.0%
Depreciation	Rs m	2,031	2,301	13.3%
Interest	Rs m	1,353	1,561	15.3%
Profit before tax	Rs m	1,493	1,638	9.7%
Tax	Rs m	401	573	42.9%
Profit after tax	Rs m	1,093	1,066	-2.4%
Gross profit margin	%	10.7	12.1
Effective tax rate	%	26.8	34.9
Net profit margin	%	2.7	2.5

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ARVIND FASHIONS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 17 billion as compared to Rs 19 billion in FY23, thereby witnessing an decrease of -11.4%.
• Long-term debt down at Rs 106 million as compared to Rs 306 million during FY23, a fall of 65.4%.
• Current assets fell 4% and stood at Rs 22 billion, while fixed assets rose 5% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 33 billion during FY23, thereby witnessing a fall of 1%.

ARVIND FASHIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,935	9,839	10.1
Current Liabilities	Rs m	19,027	16,867	-11.4
Long-term Debt	Rs m	306	106	-65.4
Total Liabilities	Rs m	32,600	32,177	-1.3
Current assets	Rs m	22,771	21,856	-4.0
Fixed Assets	Rs m	9,830	10,305	4.8
Total Assets	Rs m	32,600	32,177	-1.3

ARVIND FASHIONS Cash Flow Statement Analysis

• ARVIND FASHIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 36.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 319 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -252 million from the Rs 911 million net cash flows seen during FY23.

ARVIND FASHIONS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	3,173	4,342	36.8%
Cash Flow from Investing Activities	Rs m	-285	319	-
Cash Flow from Financing Activities	Rs m	-1,977	-4,912	-
Net Cash Flow	Rs m	911	-252	-

Current Valuations for ARVIND FASHIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an decline from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 495.0, stands at 64.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	306.4	320.3
TTM Earnings per share	Rs	8.2	8.0
Diluted earnings per share	Rs	8.2	8.0
Price to Cash Flow	x	12.0	15.7
TTM P/E ratio	x	39.4	64.1
Price / Book Value ratio	x	4.5	5.4
Market Cap	Rs m	40,369	53,018
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for ARVIND FASHIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.0x during FY24, from 2.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 10.8% during FY24, from 12.2% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 32.2% during FY24, from 30.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.2% during FY24, from 7.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	5	6
Interest coverage	x	2.1	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	8.2
Return on equity	%	12.2	10.8
Return on capital employed	%	30.8	32.2

To see how ARVIND FASHIONS has performed over the last 5 years, please visit here.

ARVIND FASHIONS Share Price Performance

Over the last one year, ARVIND FASHIONS share price has moved up from Rs 327.5 to Rs 495.0, registering a gain of Rs 167.5 or around 51.1%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for ARVIND FASHIONS and quarterly results for ARVIND FASHIONS)