Covid-19 impact: Arvind Fashions reports Q4 net loss of Rs 208 crore

Arvind Fashions Ltd (AFL) on Thursday reported a consolidated net loss of Rs 208.12 crore for the quarter ended March2020, impacted by COVID-19 outbreak and subsequent disruptions in the market.

The company had reported a net profit of Rs 21.30 crore in January-March quarter a year ago,AFL said in a regulatory filing to the BSE.

Revenue from operations fell 39.22 per cent to Rs 710.46 crore during the quarter under review as against Rs 1,168.96 crore in the corresponding quarter a year ago.

"During January and February, the company was on track to meet its internal plan. However, revenue was severely hit in March as COVID-19 impacted sales across the channels. This has adversely impacted the reported Q4 FY20 revenues and profitability," AFL said in a post-earnings statement.

The company's total expenses declined 22.98 per cent to Rs 895.58 crore as against Rs 1,162.89 crore in Q4 of 2018-19.

For fiscal year 2019-20, the company reported a net loss of Rs 399.36 crore. It had posted a net profit of Rs 21.48 crore in the previous fiscal.

Its revenue from operations in FY20 declined 16.74 per cent to Rs 3,866.30 crore as compared with Rs 4,643.86 crore in 2018-19.

"Completion of key strategic steps during the year have lent fundamental strength to our business. While COVID has been an unprecedented event which has significantly impacted the entire retail industry, as a leading casual wear company with a portfolio of brands with leading market positions and key capabilities in digital and omni-channel, we expect to gain market share as business gets back to normal," AFL MD & CEO J Suresh said,

The company said it is "well-positioned to resume full operations" at the earliest as market reopens post lockdown.

"With sharpened product portfolio suiting to customer requirements, entrenched distribution network along with capability build-up in analytics for demand planning and fulfilment, as well as omni-channel, AFL, is strongly placed to recover faster from the impact of ongoing pandemic," it said.

AFL is country's leading player in casual and denim segment and hosts a strong portfolio of fashion brands both international and indigenous which includes US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora.

It has a network of 1,290 stores and presence across India.

"After the lockdown, our stores have gradually opened, and currently 75 per cent of our stores are operational," the company said.

Shares of AFL were trading 2.41 per cent higher at Rs 174.10 on the BSE.