Arvind Ltd Q4 Results: Net profit up 19% at ₹99 crore; dividend declared

Shares of Arvind Ltd recovered on Monday after witnessing a sudden slump in the afternoon following the fourth quarter results announcement.

Arvind reported a 19% year-on-year (YoY) jump in its Q4FY24 net profit at ₹99 crore, its highest figure in the past seven quarters. Revenue rose 10% to ₹2,075 crore during the quarter under review.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 27% to ₹243 crore, whereas EBITDA margin improved by 150 basis points to 11.7%.

The company pointed out that while the Denim segment registered a 13% growth, the full-garments segment witnessed 41% growth, and the AMD combined product volume registered a 17% growth.

For the entire fiscal year 2024, Arvind reported a 4% YoY decline in its net profit at ₹334 crore. Revenue fell 8% to ₹7,738 crore while EBITDA rose 6% to ₹845 crore. The board of directors recommended a dividend of ₹4.75 per share.

The firm said its long-term debt at the end of FY24 came down further by ₹34 crore from December 2023 levels to close at ₹399 crore. Total net debt stood at ₹1,250 crore compared to ₹1,327 crore in March 2023.

FY25 guidance

The company said it expects deliver strong results in FY25, with growth likely to be lodged across key parameters.

Arvind expects to grow its traditional textile business at a more secular rate aligned to the gross domestic product (GDP), while the AMD business is expected to grow at a 20% compounded annual growth rate (CAGR).

The firm also said it has budgeted a capex of ₹400-450 crore for FY25. The investments will go towards a capacity increase in AMD and garments as well as to augment product differentiation capabilities and maintenance in the fabric business.

Shares of the company have gained over 31% since the beginning of the year. The stock has risen over 202% in the last one year.