Moreover, Arvind Fashions also experienced a substantial uptick in its earnings before interest, taxes, depreciation, and amortisation (EBITDA), which rose to ₹505 crore in FY23 from ₹247 crore in FY22, the company said in a press release.

Reflecting the company's increased profitability, profit before tax (PBT) rebounded to ₹128 crore after posting a loss of ₹110 crore in the previous year. Similarly, the company reported a profit after tax (PAT) of ₹37 crore, a remarkable turnaround from a loss of ₹267 crore in FY22.

The company's power brands witnessed a growth rate of 46 per cent, contributing ₹3,623 crore in FY23, up from ₹2,475 crore in FY22. The EBITDA for power brands surged to 12.6 per cent, up from 9.5 per cent in FY22. The emerging brands, on the other hand, reported a 37 per cent increase in revenue, reaching ₹798 crore in FY23 from ₹581 crore in FY22. The EBITDA margin for emerging brands also improved to 5.9 per cent, up from 2 per cent in FY22. The total sales EBITDA percentage improved from 8.1 per cent in FY22 to 11.4 per cent in FY23.

In the fourth quarter (Q4) of FY23, revenues grew by 24 per cent to ₹1,140 crore compared to ₹917 crore in Q4 FY22. This growth was largely due to strict discipline in retail operations leading to a robust retail like-to-like (LTL) growth of 17 per cent and a robust growth in other offline channels. Power brands revenues registered a growth of 26 per cent, leading to a strong improvement in its EBITDA margins by 120 bps. U.S. Polo Assn. continued its dominance in the casual lifestyle category, with a significant momentum in its journey towards 2,000-plus crore net sales value (NSV). The EBITDA in Q4 FY23 rose by 47 per cent to ₹138 crore compared to ₹94 crore in Q4 FY22.

“Our differentiated brand proposition across multiple categories and channels continued to attract robust consumer demand, resulting in company crossing milestone of ₹4,000 crore NSV and an improved financial performance across all metrics during FY23. We continue to expand our reach across the country and remain excited about the future potential to capture significant growth opportunities that lie ahead along with sharper focus on improving profitability further and generate higher return on capital employed (ROCE),” said Shailesh Chaturvedi, managing director and CEO.

Fibre2Fashion News Desk (DP)