Arvind Fashions - Rights Issue To The Rescue Yet Again: ICICI Securities  
Spools of cotton thread in Malaysia. (Photographer Samsul Said/Bloomberg)

Arvind Fashions - Rights Issue To The Rescue Yet Again: ICICI Securities  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Key takeaways from Arvind Fashions Ltd.’s Q3 FY21 result -

1. Overall sales recovery at 86% in Q3 FY21 with online sales growing 130% YoY owing to stronger festive season, winter shopping and increased footfalls;

2. power brands achieved sales recovery of 97%; however pre-Indian Accounting Standard 116 Ebitda margin was low at 5.6% owing to higher discounting;

3. company plans to further raise Rs 2 billion equity via rights issue to fund future growth/working capital needs; and

4. net debt though declined by Rs 1.4 billion to Rs 9.2 billion as of December 2020-end is likely to increase in Q4 FY21 owing to working capital requirement.

Click on the attachment to read the full report:

ICICI Securities Arvind Fashion Q3FY21 Result Update.pdf

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