Arvind Ltd. — Interim / Quarterly Report 2021

Aug 5, 2021

1 ArVIOD

www.arvind.com

August 5, 2021

BSE Ltd. Listing Dept. I Dept. of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

Security Code : 500 101 Security ID : ARVIND

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

Symbol : ARVIND

Dear Sir I Madam,

Sub: Outcome of the Meeting of the Board of Directors held on 301 ^hJune 2021

Ref.: Regulations 30, 33 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the following:

• 1. Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June 2021 approved by the Board of Directors of the Company at their meeting held today along with Limited Review Reports by the Deloitte Haskins & Sells LLP, Statutory Auditors of the Company, for the said quarter.
• 1. A copy of the press release being issued by the Company in respect of unaudited financial results for the quarter ended 30th June 2021.
• 1. Investor Presentation for Ql issued in this regard.

The meeting of the Board of Directors of the Company commenced at 11:30 a.m. and concluded at 12.. :.45 p.m.

You are requested to bring this to the notice of all concerned.

Thanking You,

Encl : As above

Arvlnd Limited. Naroda Road, Ahmedabad. 380 025, India Tel.: +91 79 68268000 CIN: L 17119GJ1931 PLC000093

Arvind Limited Investor Review Note

5 th August 2021| Ahmedabad

Safe harbour statement

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.

Q1 FY22 Executive Summary: Relatively strong performance despite wave-2 impact in April/May

Q1 FY22 Consolidated P&L

₹ Crs	Q1 FY22	Q1 FY20	YoY
Revenue from Operations	1,439	599	140%
Contribution	385	176
Contribution %	26.8%	29.4%
Fixed Cost	281	205
EBIDTA	104	-29	460%
EBIDTA %	7.2%	-4.8%
Other Income	10	4
Interest	47	59
Cash Accruals	67	-84	179%
Depreciation	67	72
PBT	0	-156
PAT	- 5	-95	95%
Less : Exceptional Items	4	0
Net Profit	- 8	-95	91%

• Exceptional items includes payments of stamp duty on prior period items
• As government has announced the continuation of RoSTCL for garments, EBIDTA includes ~ Rs 13.2 Cr related to Q4 FY21 provision. It also includes provision of one time pay-out to employees of Rs 15 Cr
• As government has not announced rates for refund of duties on exports (RoDTEP), the company has not accrued any income relating to RoDTEP for Q1 (at 2%, RoDTEP would amount to 8 cr)

Segment wise performance

₹ Crs	Q1 FY22			Q1 FY21
Business	Revenue	EBIDTA	% EBIDTA	ROCE%	Revenue	EBIDTA	% EBIDTA	ROCE%
Textiles	176 1 ,	104	8 9%	6 5%	436	35 -	9% 7 -	9 0% -
Advanced Material	193	25	13 0%	18 1%	106	15	2% 14	5% 7
Others	70	16 -			57	5 -
Total	439 1 ,	114	9% 7	3 8%	599	25 -	2% -4	1% -7

• Despite lock-down, Textiles revenues were up 170% on Y-o-Y, and stood at 89% of Q4

• Fabric margins have also recovered well, despite steep increase in RM prices
• Garment volumes were impacted, and Q1 revenues were only +57% on Y-o-Y
• Advanced Materials businesses only had a minor impact, and delivered a strong quarter as planned

Textile revenues higher by 170% of Q1 in FY22; price realization also improved across categories

Textile revenues (₹ Crs)

DENIM

• Overall volumes grew to ~2.8x YoY
• Robust Export demand offset domestic softness seen on sequential basis
• Average price realization improved to ₹202/meter (₹ 195/m in Q4 FY21)

WOVENS

• Overall volumes grew to ~3.3x YoY
• Domestic (+ indirect exports) slipped vs Q4
• Average price realization improved to ₹159/meter (₹ 151/m in Q4 FY21)

GARMENTS

• Overall volumes improved to 1.8x YoY

Monthly volumes across all categories recovering June onwards

• Lockdowns during April and May resulted in closure of garmenting plants in Southern India – resulting in lower garment volumes as well as fabric consumptions
• Above also impacted fabric volumes going to other garment factories
• Q2 volumes should play out as planned, subject to future disruptions related to fresh Covid waves

* Exports volumes includes sales made to export customers and shipments made to their garment factories in India

AMD continued delivered robust performance in Q1 FY22

Revenues INR Crs

Industrials:

• Strong demand across all segments yarns, belting, liquid and hot-gas filtration products
• Traction for higher margin products (e.g. mono x mono filters, non-woven belts)
• Coating business picking up momentum

Human Protection:

• Strong demand from India (utilities), North America (key accounts) and UK
• Regulator engagement in India
• Production started in Ethiopia

Composites:

• Momentum in high value products with anchor customer opportunities
• Sports business expanding rapidly (import substitution & China+1 opportunities)
• Mass Transport to deliver stock for UP metros

Export markets continued the momentum of strong/ improving performance; Domestic traction showing revival

• Export markets continued to be robust, many players have upped the forward guidance as well, but with a note of caution about potential new waves
• Spring-early Summer results of most US brands and retailers (e.g. PVH, Gap Inc, Target) show strong double digit growth even compared to 2019 numbers; rising infection rates among the nonvaccinated population cited as emerging concern
• European markets also delivered strong performance, aided by sharp increase in online volumes that partially offset the soft sales numbers from company stores
• Most brands and retailers across key markets reported increase of their online sales in the range of 50%-100% over last year
• Soaring demand for certified/ Sustainable (Organic/ BCI/ Re-cycled) cotton products
• Domestic demand revival has started as retail buying is resuming, and brands gear up for festival season
• Large brands and retailers are coming out of Wave-2, led by northern/western India
• Leisure and sports inspired clothing seeing strong recovery; formalwear demand still soft
• Online apparel buying which typically accounts for 20% in normal times, surges to around 50% during Covid lock-downs

Forward looking commentary regarding Q2 FY22

• Exports demand remains strong, domestic revival gaining momentum
• Domestic order book has started to see traction; momentum expected in August
• Key export markets in EU/UK/US continue to remain strong, may get impacted if recent signs of Covid resurgence gathers steam
• With wave 2 impact tapering off, the manufacturing activities are returning to normalcy
• Continued increase in input costs likely to impact % margins
• As market absorbs increased pricing, absolute margins will recover albeit with a lag effect
• %age margins may continue to be lower
• RoDTEP rates have not been announced our Q2 projections assume a similar level of government support to continue in line with earlier schemes
• Expect to reduce debt to near Q4FY20 levels, during the quarter

Thank You!