Arvind Ltd. — Earnings Release 2025

Oct 28, 2024

28th October, 2024

To, BSE Limited Listing Dept. / Dept. of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

Security Code: 500101 Security ID: ARVIND

To,

National Stock Exchange of India Limited Listing Dept., Exchange Plaza, 5th Floor, Plot No. C/1, G. Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Symbol: ARVIND

Dear Sir/Madam,

Sub: Press Release - Unaudited Financial Results for quarter and half year ended 30th September, 2024

Ref.: Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Pursuant to Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose a copy of the press release being issued by the Company in respect of unaudited financial results for the quarter and half year ended on 30th September, 2024.

Kindly take the same on records.

Thanking you.

Yours faithfully, For Arvind Limited KRUNAL DEVENDRAK UMAR BHATT Digitally signed by KRUNAL DEVENDRAKUMAR BHATT DN: c=IN, o=Personal, postalCode=380007, l=Ahmedabad, st=Gujarat, street=J-7 Komal Enclave 380007- Near Shantivan Cross Roads, title=4605, 96485bfd8f2fdc39683b5c5c0c, serialNumber=f1e7a9013d0c693b0ecfedd28c8f46434 c88ce4b4dc213a883d1855d85ed0f83, email=krunal.bhatt@arvind.in, cn=KRUNAL DEVENDRAKUMAR BHATT Date: 2024.10.28 12:58:23 +05'30'

Krunal Bhatt Company Secretary

Encl.: As above.

PRESS RELEASE

Arvind bounces back to growth territory in Q2 FY25

Highlights for Q2 FY25 (Comparison on a YoY basis):

• Consolidated Revenues grew 14% YoY to ₹2,188 Cr
• Consolidated EBITDA margin stood at 10.1% (₹221 Cr)
• AMD continued strong performance (₹388 Cr revenues & ₹60 Cr EBITDA)
• Third consecutive quarter of 9 mn+ pcs for full garment volumes

Ahmedabad, 28 th October 2024: Arvind Limited today announced its financial results for the second quarter and half year 30th September 2024, for the Financial Year 2024-25.

In quarter two FY25, Arvind Ltd recovered from challenges of quarter one and made progress on its growth path. All plants operated normally, contributing to a strong performance. Despite ongoing geopolitical issues and pessimistic macroeconomic forecasts creating uncertainty, the company's operating performance this quarter showed promising signs. Volume gains were reported across all segments, including Fabric, Garmenting, and AMD, supported by stable raw material costs and a favourable product mix.

Business Highlights for Q2 FY25

• Denim volume highest in nine quarters, and touched a utilization level of ~90%.
• Woven segment achieved 11% growth and 32.7 mn meters with ~100% utilization
• The Garmenting division surpassed 9 mn achieving 21% growth and improved sequential realization.

Volume growth in Textile is attributed to new customer acquisition and better demand. This also reflects the success of our verticalization strategy. The AMD division reported 10% volume growth, however order deferments in Mass Transport and slow recovery in Human Protection resulted in lower-than-expected growth.

Financial Highlights for Q2 FY25

• Consolidated Revenue and EBITDA for the quarter stood at ₹2,188 Cr and ₹221 Cr respectively, which is a growth of 14% and 7%. EBITDA margin at 10.1%.
• Textile Division Revenue grew by 12% the highest in nine quarters, and reached ₹1,633 Cr with an EBITDA of ₹168 Cr translating in to the EBITDA margin of 10.3%.,
• AMD reported a revenue of ₹388 Cr which is a growth of ~9%. EBITDA for the same period stood at ₹60 Cr with a stable margin of 15.3%.

• Consolidated Profit before tax during the Q2 FY25 increased by 20% to reach ₹135 Cr and PAT stood at ₹60 Cr. Without the impact of change in Tax and one time cost adjusted PAT would have been at ~₹97 Cr.
• Tax expenses is higher due to exceptional deferred Tax of ₹29 Cr for change in tax rate in the new Finance Act 2024. The above said tax has no impact on cashflow.
• ROCE on a run rate basis increased by 150 bps and reached 13.9%.
• The company has spent ₹167 Cr in various capex projects in H1 FY25.
• Net debt higher by ₹58 Cr in H1 as small part of the loan taken in Q1 remained.

Guidance for H2 Rest of FY25

• Textile division has a buoyant orderbook, thus, it is expected to do well in H2 FY25
• AMD is expected to do well and touch a volume growth of 20% on a run rate basis.
• After a slow start, the capex programs for FY25 have regained momentum and is expected to touch ₹400-₹450 Cr as all approved projects have expedited execution.
• Our long-term debt is expected to be around ₹400 Cr by the end of FY25.

Conclusion

After delivering a healthy performance in quarter two, the company is expecting to maintain the momentum and achieve the guided growth for the full year in FY25 (partly adjusted for impact of industrial action) while maintaining or marginally improving the margin and positively moving towards a targeted ROCE profile of 20%+. We remain steadfast in our goal of investing in our future and improving value for all our stakeholders.

About Arvind Ltd: Arvind is a textile to retail conglomerate with focus on textiles, apparels, advanced materials, environmental solutions, telecom and Omni-channel commerce. Arvind Limited is an integrated solutions provider in textiles with strong fibre to fashion capabilities for a global customer base. It is also a design powerhouse implementing innovative concepts and generating intellectual property. It ranks amongst the top suppliers of fabric worldwide. The company strives every day to create opportunities beyond conventional boundaries and believes that the possibilities are endless. For more information, please visit https://www.arvind.com/

For further information please contact: Satya Prakash Mishra Head - Investor Relations (Mobile: 7036228882) Satyaprakash.mishra@arvind.in

Disclaimer:

Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of Arvind Limited or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.