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Arvind Fashions predicts higher cash generation as brands like Arrow continue to grow
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Arvind Fashions predicts higher cash generation as brands like Arrow continue to grow
May 31, 2023 4:59 AM

Kulin Lalbhai, Vice-Chairman and Non-Executive Director of Arvind Fashions, in an interview with CNBC-TV18 said that certain brands within the company, such as Arrow, are experiencing growth and actively expanding. This expansion is expected to contribute to higher earnings before interest, taxes, depreciation, and amortization (EBITDA) for Arvind Fashions, indicating positive prospects and the potential to drive profitability.

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Lalbhai emphasised the positive trajectory of these brands, stating, "Certain brands within our company are still in their growth phase, and as they continue to scale up, their profitability will significantly improve - brands such as Arrow." This highlights the company's focus on nurturing and maximizing the potential of these brands to enhance their financial performance.

Regarding the pending online license for Sephora, a renowned beauty brand associated with Arvind Fashions, Lalbhai expressed ongoing excitement about the brand's current operations. He mentioned that Sephora is the leading premium beauty retailer in the country and emphasized the company's efforts to continuously strengthen its proposition for consumers. Lalbhai added, "Our stores are looking great, and we continue to add new brands, making the overall offering even more compelling for our customers."

Also Read | Arvind Fashions expects to have double-digit margin in the next 18 months

Speaking further about online contribution, Lalbhai said that online channels are playing a significant role in driving Arvind Fashions' revenues, with their contribution nearing 20 percent.

The Company, through its subsidiary, Arvind Lifestyle Brands Limited, markets branded apparel and licenses international brands in India. Its brand portfolio includes international brands, such as Arrow, US Polo Assn., Tommy Hilfiger, and Flying Machine. And emerging brands are Calvin Klein, Sephora, Ed Hardy, Aeropostale, etc.

Also Read | Nykaa CEO Falguni Nayar sees fashion business improving in FY24, plans to open 50 more stores

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com's blog

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