Arvind Fashions Ltd, a leading player in the casual and denim segment, on Tuesday reported a multifold rise in consolidated net profit at INR 51.08 crore for the December quarter FY24, helped by gains from sales of Sephora business.
During the quarter, AFL sold its Sephora business to Reliance Retail, resulting in a gain of INR 94.28 crore. Additionally, Arvind Beauty Brands Retail Ltd (ABBRL) no longer functions as a subsidiary.
AFL recorded a net profit of INR 30.12 crore from continuing operations, compared to INR 26.39 crore in the third quarter of the previous fiscal year.
Revenue from operations stood at INR 1,125.05 crore, up from INR 1,072.78 crore in the corresponding period last year.
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“Growth was primarily led by retail and MBO channel,” said an earning statement from the company.
The company’s total expenses in the December quarter stood at INR 1,081.71 crore, reflecting a 3% year-on-year increase.
In the quarter, the combination of revenue growth and an expansion in gross margin led to an 18% increase in EBITDA to INR 150 crore, up from INR 127 crore in Q3 FY23, the company stated.
Total income stood at INR 1,131.96 crore, representing a 4% year-on-year increase.
“Strong financial performance in this quarter reflects the focus on profitable growth with 150 basis points improvement in EBITDA, a growth of 18% over Q3 last year,” MD & CEO Shailesh Chaturvedi said.
AFL manages retail stores of renowned international brands such as U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine.
Shares of Arvind Fashions on Tuesday settled at INR 453.55 apiece on BSE, down 2.5%.