Arvind Limited share declared top-line advancement leading to a best ever quarterly performance on Thursday.
Q3 FY22 Executive Summary
- Exceptional top-line growth across both segments
- EBIDTA rose by 46% despite high cotton prices, other input prices and international logistics challenges
- Surge in volumes due to continued strength in domestic market and sharp improvement in export demand, especially for Wovens
- Debt reduction by about 157 crore & 226 crore compared to Sept and March 21
- Digital and cost deduction initiatives proceed to enable offset input price burdens
Q3 FY22 Consolidated P&L, All time elevated PBT and PAT volumes
Revenue from Operations is 2276 as compare to 1514 in Q3 FY21 with YoY change of 50%
EBIDTA is 237 as compare to 162 in Q3 FY21 with YoY change of 46%
Strong improvement in ROCE as EBIDTA boosted due to
• Fabric volumes thrived smartly and exceeded pre-covid phases transmitting an extra ₹62cr EBITDA
• Advanced Materials industries thrived by 42%
Textile revenues elevated by 57% ridden by ~25% improvement in higher culmination and remaining from volume growth
Increasing culmination and operational efficiency have enabled manage the historic surge in cotton rates
- Global cotton markets turbulence begins again as pressure stays powerful at 124M+ bales while supply impeded because of weather circumstances and supply chain difficulties
- Strong prices have funded speculative attitude by merchants as well as stocking up by spinners or vertical mills
Q4 revenues and margins inclined to be related to Q3 abundances
• Strong demand side circumstance will enable maintain robust volumes and price completion
• EBITDA will be decent, though margins will glance under tension as top-line will be increased.
