Advanced materials business crosses Rs 1,000 crore in turnover
Arvind Limited ended FY22 on a strong note in terms of Q4 performance, which was similar to Q3. For Q4, Arvind posted revenues of Rs 2,204 crore and EBITDA of Rs 235 crore, helping close the year at tRs 8,034 crore revenues and Rs 788 crore EBITDA. Fabric and garment volumes remained strong across both domestic as well as export markets. Denim volumes improved from 62M metres to 92M metres, woven volumes from 81M metres to 120M metres and garment volumes from 32M to 36M pieces.
Margins continued to be under pressure as cotton prices continued to soar, and other input costs also remained high. While price increases helped offset the cost increases, margin numbers looked lower compared to the previous periods. Advanced materials crossed the Rs 1000 crore mark during the year and delivered EBITDA margin of 13%. Arvind Limited closed the financial year at a net debt of Rs 1,682 crore which was Rs 268 crore lower than the March 2021 levels. Long-term debt reduced by Rs 415 crore over this period.
Arvind Limited is one of the largest textile companies in India with revenues exceeding USD 1 billion. The company is an end-to-end supply chain partner to the world’s leading fashion brands and its Advanced Materials Division makes a variety of technical textile products. Arvind’s textiles business grew by 65% and advanced materials business grew by 51%. Advanced materials, focussing on technical textile products, crossed the Rs 1,000 crore mark in FY22. Within the advanced materials business, the human protection segment clocked Rs 500 crore in business with 75% coming from its top five customers.
The company launched new products like high visibility, anti-microbial and quilted products. The industrial segment continued to grow as capacities expanded and utilisation levels improved. Arvind unlocked potential of higher value categories like viscose nonwovens and mono filtration products. In composites, Arvind saw marquee wins including supplies to Wilson (racquets) and Indian Coach Factory (parts of Vande Bharat trains). These new products and segments are providing the much-needed momentum for Arvind’s exponential growth in the advanced materials business.