Arvind Fashions Ltd reported its Q4 FY24 earnings, delivering an 8.8% year-on-year increase in revenue to ₹1,189 crore, compared to ₹1,093 crore in the same period last year. However, despite the top-line growth and an 18% rise in EBITDA to ₹158.6 crore, the company posted a net loss of ₹93.15 crore, swinging from a profit of ₹24.3 crore a year ago.
This disappointing bottom-line figure raises concerns over cost pressures and operational challenges in the fashion retail space. The EBITDA margin improved slightly to 13.34% from 12.3% YoY, reflecting some operational efficiency gains, but not enough to offset other expenses and interest costs.
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Arvind Fashions currently trades at ₹458, down 2.14% from the previous close. The company commands a market capitalization of ₹6,106 crore. It trades at a steep P/E of 177, indicating richly priced valuations despite profitability concerns. The price-to-book value stands at 6.37, which is also significantly above the industry average of 2.67.
Promoter holding in the company is 35.19%, with FIIs holding 9.42% and DIIs at 21.94%. The stock’s return on equity (ROE) stands at 3.51%, while return on capital employed (ROCE) is reported at 16.3%. Net profit margin has dropped to 0.74% as of the latest fiscal year, indicating tight earnings compared to peers.
Arvind Fashions operates across premium fashion and lifestyle categories with a portfolio of global brands. Despite its strong brand portfolio and multi-channel distribution, the company has faced challenges maintaining profitability over the years. Sales growth over the last three years was 14.8%, with profit growth at 28.9%, although current earnings performance reflects volatility.
For investors tracking the branded apparel segment, this quarterly result underscores the importance of balancing revenue scale with sustainable cost management. As operational efficiency improves and discretionary spending rebounds, the company will need to regain consistent profitability to justify current valuations.
For more details, visit the official website of Arvind Fashions.
Disclaimer
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Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
