MIRA
INFORM REPORT
|
Report Date : |
02.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
ARVIND
LIMITED (w.e.f.14.07.2008) |
|
|
|
|
Formerly Known
As : |
ARVIND MILLS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
01.06.1931 |
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Com. Reg. No.: |
04-000093 |
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Capital
Investment / Paid-up Capital : |
Rs. 2581.700 Millions |
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|
CIN No.: [Company Identification
No.] |
L17119GJ1931PLC000093 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Cotton Shirting, Denim, Knits and Bottom
Weights (Khakis) Fabrics and Jeans and Shirts Garments. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 105000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Not Available |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects long standing track record of Arvind as an integrated
textile manufacturer having a presence across the entire textile value chain
supported by widespread retail distribution network, diversified brand
portfolio and healthy financial risk profile of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central Bureau
of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as
bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains revenue
guidance. COO Rao says attrition still an area of concern and it would take a
few more quarters to bring down levels to 13-15 %.
DHL to invest Euro
100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that it had willfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Commercial Paper = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
August 28, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
LOCATIONS
|
Registered Office : |
Naroda Road, Ahmedabad – 380025, Gujarat, India |
|
Tel. No.: |
91-79-30138000 |
|
Fax No.: |
91-79-30138671 |
|
E-Mail : |
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Website : |
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Plant Locations : |
Located at: v Lifestyle
Fabrics-Denim, Naroda Road, Ahmedabad - 380025, Gujarat, India v Lifestyle Fabrics
- Voiles, Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat,
India v Lifestyle
Fabrics-Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka Kalol,
District Gandhinagar - 382721, Gujarat, India v Lifestyle
Apparel-Knits, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar -
382721, Gujarat, India v Lifestyle
Apparel-Jeans, # 26/2, 27/2, Kenchenahalli, Mysore Road, Near Bangalore
University, Bangalore – 560059, Karnataka, India v Lifestyle
Apparel-Shirts, # 23/1, Sonnenahalli Village, Sitarampalya Cross, ITPL Road,
Brookfield, Mahadevpura Post, Bangalore – 560048, Karnataka, India v Lifestyle
Apparel-Shirts, # 63/9, Doddathogur Village, Electronic City Post, Bangalore
– 560100, Karnataka, India v Arvind Intex,
Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat, India v Arvind Polycot,
Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India v Arvind Cotspin,
D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur - 416234, Maharashtra,
India |
|
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Branch Offices : |
Located at: v
Gandhinagar v
Bangalore |
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|
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Overseas Offices : |
Located at: v USA v
Bangladesh |
DIRECTORS
AS ON 31.03.2014
|
Name: |
Mr. Sanjay S. Lalbhai |
|
|
Designation: |
Chairman and Managing Director |
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Name: |
Mr. Jayesh K. Shah
|
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Designation: |
Director and Chief Financial Officer |
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Name : |
Mr. Punit S. Lalbhai |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Kulin S. Lalbhai |
|
Designation : |
Executive Director |
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|
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|
Name : |
Mr. Sudhir Mehta |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Dr. Bakul Dholakia |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Vallabh Bhanshali |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Dileep C. Choksi |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Ms. Renuka Ramnath |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Prabhakar Dalal |
|
Designation : |
Nominated by Export-Import Bank of
India |
KEY EXECUTIVES
|
Name : |
Mr. R.V. Bhimani |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2341906 |
0.91 |
|
|
109876025 |
42.61 |
|
|
112217931 |
43.52 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
112217931 |
43.52 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
18674923 |
7.24 |
|
|
73272 |
0.03 |
|
|
500 |
0.00 |
|
|
16585534 |
6.43 |
|
|
60177392 |
23.34 |
|
|
1113 |
0.00 |
|
|
1113 |
0.00 |
|
|
95512734 |
37.04 |
|
|
|
|
|
|
12048958 |
4.67 |
|
|
|
|
|
|
27521359 |
10.67 |
|
|
8104195 |
3.14 |
|
|
2466010 |
0.96 |
|
|
1343156 |
0.52 |
|
|
2195 |
0.00 |
|
|
1120659 |
0.43 |
|
|
50140522 |
19.44 |
|
Total Public
shareholding (B) |
145653256 |
56.48 |
|
Total (A)+(B) |
257871187 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
338542 |
0.00 |
|
|
338542 |
0.00 |
|
Total
(A)+(B)+(C) |
258209729 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Foreign
Bank/IFCW
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cotton Shirting, Denim, Knits and Bottom
Weights (Khakis) Fabrics and Jeans and Shirts Garments. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v State Bank of India v
Bank of Baroda v
UCO Bank v
State Bank of Patiala v
HDFC Bank Limited v
Standard Chartered Bank v
ICICI Bank Limited v
Export-Import Bank of India v
Axis Bank Limited v
State Bank of Hyderabad v
IDBI Bank Limited v
Canara Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Sorab S. Engineer and Company Chartered Accountants |
|
Address : |
Ismail Building,
381, Dr. D. Naoroji Road, Fort, Mumbai – 400001, Maharashtra, India |
|
|
|
|
Subsidiary
Company : |
v Asman Investment
Limited v The Anup
Engineering Limited v Arvind Lifestyle
Brands Limited v Arvind Accel
Limited v Syntel Telecom
Limited v Arvind
Infrastructure Limited v Arvind Brands
and Retail Limited v Arvind Internet
Limited v Arvind Envisol
Private Limited v Arvind Worldwide
Inc., USA v Arvind Worldwide
(M) Inc., Mauritius v Arvind Overseas
(M) Limited, Mauritius v Arvind Garments
Park Private Limited (Formerly known as Arvind Processing Park Private
Limited) v Arvind Spinning
Limited, Mauritius v Arvind Textile
Mills Limited, Bangladesh v Dholka Textile
Park Private Limited (Formerly known as Arvind Spinning Park Private Limited) v Arvind Hebbal
Homes Private Limited |
|
|
|
|
Joint Venture : |
v Arya Omnitalk
Wireless Solutions Private Limited v Tommy Hilfiger
Arvind Fashions Private Limited v Arya Omnitalk Radio
Trunking Services Private Limited v Arudrama
Developers Private Limited |
|
|
|
|
Joint Venture
Subsidiary Company : |
v Arvind PD
Composites Private Limited v Arvind Goodhill
Suit Manufacturing Private Limited v Arvind Niloy
Exports Private Limited, Bangladesh v Arvind OG
Nonwovens Private Limited |
|
|
|
|
Limited
Liability Partnership : |
v Arvind Bsafal
Homes LLP v Ahmedabad East
Infrastructure LLP v Arvind Infracon
LLP v Arvind Five
Homes LLP v Arvind Altura
LLP v Arvind
Industrial Infrastructure (One) LLP v Arvind Alcove
LLP v Arvind &
Smart Value Homes LLP v Changodar
Industrial Infrastructure (One) LLP |
|
|
|
|
Company under
the control of Key Managerial Personnel : |
v Aura Securities
Private Limited v Amplus Capital
Advisors Private Limited |
CAPITAL STRUCTURE
AFTER 30.07.2014
Authorised Capital : Rs. 6650.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 2582.097
Millions
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
565,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 5650.000 Millions |
|
10,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 6650.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
258,177,289 |
Equity Shares |
Rs. 10/- each |
Rs. 2581.700 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
258,176,389 |
Equity Shares |
Rs. 10/- each |
Rs. 2581.700 Millions |
|
|
Forfeited Shares 900 Shares [Rs. 0.005 Million] |
|
|
|
|
|
|
|
|
|
Total |
|
Rs. 2581.700
Millions |
Reconciliation of Number of Equity Shares
|
Particulars |
31.03.2014 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Balance at the beginning of the year |
258,043,069 |
2580.400 |
|
Add : |
|
|
|
Shares allotted pursuant to exercise of Employee Stock Option Plan |
133,320 |
1.300 |
|
Shares allotted to the shareholders of Amalgamated Company |
-- |
-- |
|
Balance at the end of the year |
258,176,389 |
2581.700 |
Rights,
Preferences and Restrictions attached to Shares
Equity Shares:
The Company has
one class of shares referred to as equity shares having a par value of Rs.10 each.
Each shareholder is entitled to one vote per share held. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.
Details of Shares held by Shareholders holding more than 5% of the
aggregate shares in the Company
|
Particulars |
March 31, 2014 |
|
Aura Securities Private Limited |
9,57,90,590 37.10% |
|
Life Insurance Corporation of India |
1,65,85,134 6.42% |
Shares allotted as
fully paid up pursuant to contract without payment being received in cash (during
5 years immediately preceding March 31, 2014)
34,10,528 Equity
Shares of Rs.10 each were issued during the year 2012-2013 to the erstwhile
shareholders of Arvind Products Limited pursuant to the Scheme of Amalgamation
without payment being received in cash.
Proposed Dividend
The final dividend proposed for the year is as follows:
|
Particulars |
March 31, 2014 |
|
On Equity Shares of Rs.10/- each |
|
|
Dividend per Equity Share (` ) |
23.500 |
|
Percentage of Dividend Proposed |
23.50% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2581.700 |
2580.400 |
2580.400 |
|
(b) Reserves & Surplus |
23779.800 |
20414.700 |
17579.600 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
26361.500 |
22995.100 |
20160.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
11544.600 |
9471.000 |
7073.500 |
|
(b) Deferred tax liabilities (Net) |
600.200 |
128.200 |
128.200 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
185.900 |
119.800 |
495.100 |
|
Total Non-current
Liabilities (3) |
12330.700 |
9719.000 |
7696.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
10947.200 |
10155.400 |
8959.500 |
|
(b)
Trade payables |
7151.900 |
6644.800 |
5983.200 |
|
(c)
Other current liabilities |
2783.700 |
2453.300 |
2462.600 |
|
(d) Short-term
provisions |
760.100 |
869.600 |
945.700 |
|
Total Current Liabilities
(4) |
21642.900 |
20123.100 |
18351.000 |
|
|
|
|
|
|
TOTAL |
60335.100 |
52837.200 |
46207.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
24906.200 |
23340.100 |
22626.100 |
|
(ii)
Intangible Assets |
55.800 |
56.500 |
64.500 |
|
(iii)
Capital work-in-progress |
723.200 |
2003.200 |
1791.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
7003.300 |
4928.600 |
3371.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3506.300 |
2359.300 |
1892.100 |
|
(e) Other
Non-current assets |
0.100 |
5.400 |
20.400 |
|
Total Non-Current
Assets |
36194.900 |
32693.100 |
29765.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
9426.100 |
8779.600 |
7284.200 |
|
(c)
Trade receivables |
5189.300 |
4424.200 |
4055.500 |
|
(d) Cash
and cash equivalents |
1238.200 |
1506.000 |
393.700 |
|
(e)
Short-term loans and advances |
5030.400 |
2502.400 |
2147.500 |
|
(f)
Other current assets |
3256.200 |
2931.900 |
2561.700 |
|
Total
Current Assets |
24140.200 |
20144.100 |
16442.600 |
|
|
|
|
|
|
TOTAL |
60335.100 |
52837.200 |
46207.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
47754.800 |
37802.900 |
34941.200 |
|
|
|
Other Income |
844.400 |
934.600 |
1358.100 |
|
|
|
TOTAL (A) |
48599.200 |
38737.500 |
36299.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
20965.000 |
16412.200 |
15687.600 |
|
|
|
Purchases of Stock-in-Trade |
779.200 |
844.400 |
374.000 |
|
|
|
Project Expenses |
145.700 |
280.700 |
136.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(663.000) |
(1660.100) |
35.700 |
|
|
|
Employees benefits expense |
5088.400 |
4422.200 |
3605.100 |
|
|
|
Other expenses |
13494.500 |
11636.600 |
10090.400 |
|
|
|
Exceptional Items |
164.000 |
0.000 |
0.000 |
|
|
|
Extraordinary Items |
0.000 |
0.000 |
(2518.000) |
|
|
|
TOTAL (B) |
39973.800 |
31936.000 |
27410.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8625.400 |
6801.500 |
8888.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2964.400 |
2684.400 |
2702.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5661.000 |
4117.100 |
6186.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1575.100 |
1504.900 |
1305.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4085.900 |
2612.200 |
4880.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
472.000 |
0.000 |
538.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3613.900 |
2612.200 |
4342.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on F.O.B. basis |
18622.900 |
14449.400 |
14871.000 |
|
|
|
Non-Compete Fees |
54.200 |
0.000 |
0.000 |
|
|
|
Better Cotton Grant |
22.800 |
25.200 |
24.500 |
|
|
TOTAL EARNINGS |
18699.900 |
14474.600 |
14895.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
490.600 |
929.100 |
1577.200 |
|
|
|
Raw Materials and Accessories |
2451.000 |
2870.500 |
1233.700 |
|
|
|
Dyes and Chemicals, Stores and Spares |
816.800 |
738.700 |
612.700 |
|
|
TOTAL IMPORTS |
3758.400 |
4538.300 |
3423.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
14.00 |
10.12 |
9.16 |
|
|
|
Diluted
|
14.00 |
10.12 |
16.83 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 |
|
Type |
1st
Quarter |
|
Net Sales |
12775.300 |
|
Total Expenditure |
10764.600 |
|
PBIDT (Excl OI) |
2010.700 |
|
Other Income |
366.400 |
|
Operating Profit |
2377.100 |
|
Interest |
790.800 |
|
Exceptional Items |
(1.700) |
|
PBDT |
1584.600 |
|
Depreciation |
301.300 |
|
Profit Before Tax |
1283.300 |
|
Tax |
150.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1133.300 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1133.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
7.44 |
6.74 |
11.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.56 |
6.91 |
13.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.77 |
5.69 |
11.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.11 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.85 |
0.85 |
0.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.12 |
1.00 |
0.90 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
2580.400 |
2580.400 |
2581.700 |
|
Reserves & Surplus |
17579.600 |
20414.700 |
23779.800 |
|
Net
worth |
20160.000 |
22995.100 |
26361.500 |
|
|
|
|
|
|
Long-term borrowings |
7073.500 |
9471.000 |
11544.600 |
|
Short term borrowings |
8959.500 |
10155.400 |
10947.200 |
|
Total
borrowings |
16033.000 |
19626.400 |
22491.800 |
|
Debt/Equity ratio |
0.795 |
0.854 |
0.853 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
34941.200 |
37802.900 |
47754.800 |
|
|
|
8.190 |
26.326 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
34941.200 |
37802.900 |
47754.800 |
|
Profit |
4342.300 |
2612.200 |
3613.900 |
|
|
12.43% |
6.91% |
7.57% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10515334 |
15/07/2014 |
2,830,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
C16686990 |
|
2 |
10493707 |
11/03/2014 |
500,000,000.00 |
CANARA BANK |
PCB, 104, JYOTI COMMERCIAL
COMPLEX, NR. SHYAMAL CROSS ROADS, SATELLITE, AHMEDABAD, GUJARAT -
380015, |
C04357356 |
|
3 |
10482339 |
28/02/2014 |
3,830,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX,NR.MAHAKANT BLDG.,
ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA |
B98398761 |
|
4 |
10472196 |
20/01/2014 |
3,900,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B94256500 |
|
5 |
10453218 |
06/09/2013 |
1,350,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B86723749 |
|
6 |
10429849 |
14/05/2013 |
750,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B76623339 |
|
7 |
10419190 |
22/03/2013 |
1,350,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX, NR.MAHAKANT BLDG.,
ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA |
B73026858 |
|
8 |
10419216 |
22/03/2013 |
1,000,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSID |
B73034290 |
|
9 |
10393746 |
29/11/2012 |
1,000,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B64792104 |
|
10 |
10388441 |
30/10/2012 |
250,000,000.00 |
ICICI BANK
LIMITED |
ZONAL HOUSE, 9TH
FLOOR, JMC HOUSE, OPP. PARIMAL GARDEN, AMBAWADI, AHMEDABAD, GUJARAT - 380006,
INDIA |
B62762398 |
|
11 |
10381413 |
17/10/2012 |
800,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B60039781 |
|
12 |
10376483 |
17/09/2012 |
550,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B58096124 |
|
13 |
10377372 |
28/08/2012 |
1,000,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI", NR. MAHAKANT BLDG.,
ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA |
B58435439 |
|
14 |
10363118 |
08/06/2012 |
535,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, 1ST FLOOR, "PARAMSIDDHI", NR. MAHAKANT
BLDG., ELLSBRIDGE, |
B42681239 |
|
15 |
10358930 |
14/05/2013 * |
1,000,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI,, MUMBAI,
MAHARAS |
B76624253 |
|
16 |
10333350 |
22/03/2013 * |
400,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, |
B72430879 |
|
17 |
10312288 |
05/10/2011 |
700,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA
- 400025, INDIA |
B23289382 |
|
18 |
10310959 |
15/07/2014 * |
17,316,400,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
C19159359 |
|
19 |
10292233 |
31/05/2011 |
820,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B15008220 |
|
20 |
10292222 |
11/05/2011 |
75,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, 3RD FLOOR, "PARAMSIDDHI", NR. MAHAKANT
BLDG., ELLSBRIDGE, |
B15004443 |
|
21 |
10292227 |
09/05/2011 |
500,000,000.00 |
AXIS TRUSTEE SERVICES
LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B15007438 |
|
22 |
10269521 |
17/02/2011 |
500,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
2ND FLOOR, E, AXIS
HOUSE,BOMBAY DYEING MILLS COMP, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B06476824 |
|
23 |
10268862 |
10/02/2011 |
300,000,000.00 |
SMALL INDUSTRIES
DEVELOPMENT BANK OF INDIA |
1ST FLOOR, NAVJIVAN
AMRIT JAYANTI BHAVAN, NAVJIVAN P.O., AHMEDABAD, GUJARAT - 380014, INDIA |
B05657176 |
|
24 |
10251221 |
16/12/2011 * |
500,000,000.00 |
EXPORT - IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B31737703 |
|
25 |
10247115 |
28/09/2010 |
750,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
MAKER TOWERS
'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A97280226 |
|
26 |
10194926 |
28/12/2009 |
400,000,000.00 |
AXIS BANK
LIMITED |
CENTRAL OFFICE,
MAKER TOWERS, "F" 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI,
MAHARASHTRA - 400005, |
A76346972 |
|
27 |
10133914 |
10/01/2011 * |
232,500,000.00 |
AXIS BANK
LIMITED |
CORPORATE OFFICE,
AXIS HOUSE, 02ND FLOOR, E WING, |
B06297907 |
|
28 |
10126987 |
10/01/2011 * |
400,000,000.00 |
AXIS BANK
LIMITED |
CORPORATE
OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, |
B06302004 |
|
29 |
10123879 |
10/01/2011 * |
1,101,000,000.00 |
AXIS BANK
LIMITED |
CORPORATE
OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, |
B06297550 |
|
30 |
10119694 |
10/01/2011 * |
500,000,000.00 |
AXIS BANK
LIMITED |
CORPORATE
OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, |
B06306278 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
From Financial Institutions |
25.800 |
25.800 |
|
SHORT TERM BORROWINGS |
|
|
|
Under Buyer’s Credit Arrangement |
884.700 |
498.700 |
|
Intercorporate Deposits From Related Parties |
0.100 |
2.600 |
|
From Others |
4.300 |
18.600 |
|
|
|
|
|
Total |
914.900 |
545.700 |
COMPANY BACKGROUND
Subject is one of
the India’s leading vertically integrated textile companies with the presence of
almost eight decades in this industry. It is among the largest denim
manufacturers in the world. It also manufactures a range of cotton shirting,
denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments.
Arvind, through its subsidiary company Arvind Lifestyle Brands Limited, is
marketing in India the branded apparel under various brands and is also
licensee in India for various international brands. The brands portfolio of the
company includes International brands like Arrow, US Polo, Izod, Elle, Cherokee
etc. It also operates apparel Value Retail stores MEGAMART. It also operates
the specialty retail stores under the licensing arrangement with international
brands of Debanhams and Next. Arvind also has the presence in Telecom business
directly and through joint venture companies. Recently Arvind has made foray in
to Technical Textiles on its own and in joint venture with leading global
players.
OPERATIONS
The macroeconomic scenario during the year was characterized by world
economy continuing its downward trend on growth; as world economy further
decelerated growth rate to 3.0% in 2013 compared to 3.2% in 2012. India’s
economy showed some signs of recovery, albeit slow, in FY 2013-14. India’s GDP
growth rate moderately increased to 4.9%, as compared to 4.5% in FY 2012-13.
This was accompanied by some easing in the inflation rate. However, high
interest rates, a depreciated currency and uncertainty due to general elections
have led to deceleration in the economic recovery. Particularly, performance of
industry sector was lackluster last year, owing to high interest cost and low
investment. In the backdrop of above macro-economic scenario, the performance
of the Company is highly encouraging. The Company has closed the financial year
2013-14 with 26% growth in sales and 29% growth in Operating Earnings before
Interest, Depreciation and Taxes. (Operating EBITDA). PBT (excluding
Exceptional Income) has shown a growth of 63% compared to the previous year.
The Company has achieved the growth across all business segments. The
Revenue from Denim has increased by 22% (17% increase, ignoring the loss of
volume on account of strike in the previous year). As a result of expansion in
capacity and increase in price, the Woven Business registered a growth of 29%
in Revenue, Voiles Business registered a growth of 21%, Knits Business
registered a growth of 48% and Garments Business registered a growth of 27%.
FINANCE
The Company has
repaid the installments of Term Loans amounting to Rs.2280.000 Millions during
the current year.
The Company has
also made fresh borrowings of Rs. 4470.000 Millions for funding capital
expenditure and other requirements. Long Term Debt of the Company stands to
Rs.13220.000 Millions as on 31st March, 2014.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW OF THE ECONOMY
In 2013, world economy continued its downward trend on growth; as world
economy further decelerated growth rate to 3.0% in 2013 compared to 3.2% in
2012. India’s economy showed some signs of recovery, albeit slow, in FY
2013-14. India’s GDP growth rate moderately increased to 4.9%, as compared to
4.5% in FY 2012-13. This was accompanied by some easing in the inflation rate.
However, high interest rates, a depreciated currency and uncertainty due to
general elections have led to deceleration in the economic recovery.
Particularly, performance of industry sector was lacklustre last year, owing to
high interest cost and low investment. In August last year, currency
depreciated to all-time low against US$ (Rs. 68.80 per US$). Depreciated
currency, coupled with improvement in global demand particularly in the EU and
the U.S., led to increase in exports growth. Total exports from India, in Rupee
terms, grew by 15.8% in FY13-14 compared to last FY. This helped reduce trade
deficit by 27% in this year compared to last year.
Looking ahead, the outlook for FY 2014-15 appears optimistic. Though
last year started on a dismal note, the improvement in economic performance in
the later half is likely to continue the momentum. While a lot will depend on
the measures announced after formation of new government; resurgence in
exports, reduction in inflation and deficits (trade, current and fiscal), along
with global economic revival are likely to add impetus to the economy.
In FY 2014-15, India is likely to accelerate GDP growth rate to
5.5%-6.0%. The increase in growth rate is expected to be contributed majorly by
the industrial sector, estimated to grow at 4% next year (up from ~1% in last
FY). Unclogging of domestic policy logjam as well as improvement in private
consumption demand is likely to drive the growth. Particularly, merchandise
exports are expected to grow by 8%-10% in the next fiscal year, driven by
global growth prospects. Though addressing supply-side constraints (e.g. in
mining, power, and steel sectors) will be the key to continue this momentum and
achieve the increase in growth rate.
Despite the modest expectations in the short term, the prospects of long
term growth in India remain immensely strong. India’s growth model is domestic
consumption-led. With level of consumption much higher than other Asian tigers
(e.g. China) and quite close to developed economies (e.g. Japan), consumption
is an important engine of India’s growth. Increasing consumption by burgeoning
middle-class of India, along with the rising share of discretionary spend, will
create a huge market opportunity for companies who have strong position in
India.
INDIAN TEXTILE INDUSTRY
India is the world’s second largest producer of textiles and garments,
with a massive and diverse raw material base. Due to this, Indian Textile
Industry is not only of paramount importance to the national economy, it also
has an influential presence in global market.
In India, textile and clothing industry contributes nearly 4% of India’s
GDP, 12% of total industrial production and 11% of total exports of goods.
Textile Industry provides direct employment to 35 million and indirect
employment to 45 million, which makes it the 2nd largest employment provider in
the country after Agriculture.
Globally, India has the 2nd largest textile manufacturing capacity, in
terms of spindles and looms. India is the 4th largest exporter of textiles and
clothing products to the world, with a share of 4.4% in the global trade. Over
last 10 years, exports of textiles and clothing products from India have grown
at more than 11% p.a., which increased the share in global trade from 3% to
4.4% between 2003 and 2012.
Indian textiles industry has a strong presence across the value chain. The
fundamental strength of this industry flows from its strong production base of
wide range of fibres / yarns from natural fibres like cotton, jute, silk and
wool to synthetic /man-made fibres like polyester, viscose, nylon and acrylic.
Globally, India is the largest producer of Jute fibre, and 2nd largest producer
of cotton, silk, cellulosic and synthetic fibres.
The Indian textile industry is set for strong growth, buoyed by both
strong domestic consumption as well as export demand. The total Indian textile
industry size, including readymade garments, was estimated to be Rs.4.7 lakh
Crores (nearly USD 87 Bn) in 2012, of which apparel had a share of 69% of the
overall market and textiles contributed the remaining 31%. The sector is
projected to grow over the next 10 years at a CAGR of 9-10%, to reach Rs. 10
lakh Crores (nearly USD 200 billion) by 2020.
The exports of textile and clothing products, accounts for about 35% of
the total textiles sector in India. Exports will continue to play a pivotal
role in driving future growth of this sector. Global trade in textiles and
clothing is expected to see a strong growth, from current US$ 750 Bn in 2012 to
reach nearly US$ 1,150 by 2020. This will create an incremental global demand
of US$ 400 Bn primarily driven by the increasing global consumption, continued
shift of production base from developed to developing economies and also value
growth from inflation.
India is poised to be a strong contender to grab a share in the growing
pie of global trade. The cost competitiveness of India, as compared to some of
the other exporting countries in Asia (e.g. China) has improved
over recent years. Availability of key inputs, i.e. abundant supply of
fibres, industrial workforce and young demographic are favouring India. These
advantages combined with entrepreneurial ability and capability to build
infrastructure will be key success factors for India’s rise in global trade.
COTTON
For the current cotton season (Oct ’13 to Sep ’14), the Cotton Advisory
Board has projected cotton production at 375 lakh bales (of 170kgs each) from
116 lakh hectare area. It is estimated that the yields will improve by ~7% this
year, compared to the last year when 365 lakh bales production came from 120
lakh hectare area. The exports of cotton are strong this year, and have already
crossed 94 lakh bales in first 6 months of Oct-Sep season.
Global production of cotton, as per estimates from International Cotton
Advisory Committee, is projected to decline to 25.73 million tons compared to
estimated production of 26.83 million tons last year.
India is the second largest producer of cotton, with a small gap from
the leader China. India exports about ~90-100 lakh bales (approx. 1/4th of
production), mainly to neighbouring countries China, Bangladesh and Pakistan.
During 2012-13, the exports to Bangladesh increased significantly by approx.
+60% compared to the year 2011-12, driven by growth in Bangladesh’s
readymade garment exports.
Outlook on cotton prices this year are expected to be influenced by
factors beyond just the production in India. Other factors that are likely to
impact prices are – China’s policy, global weather and INR exchange rate. The
biggest factor is expected to be Chinese policy. If China pushes to get rid of
its huge stockpile (~60% of global stock), it could further cut reserve prices
and hence limit the demand of imported cotton. This may result in downside on
the prices later in the year. On the other hand, US and China reported less
than optimal weather conditions in the beginning of the year, which creates
some uncertainty towards eventual global production. The weather risk might
push the prices on upside. Currency is also expected also play a significant
role this year. In the scenario that INR appreciates further against USD, it
will put pressure on India’s exports of both cotton as well as cotton yarn.
TEXTILE OUTLOOK
In the mid-long term, the Indian textile industry is expected to grow
very strongly with growth being balanced from both domestic consumption as well
as exports demand. In the near-term, domestic demand would depend on the
revival of the macro-economic factors. On exports front, there are both
positive and negative factors. Positive factors include the weak currency and
decreasing cost competitiveness of China that are likely to give positive
impetus to the Indian exports. At the same time, factors like slowdown and
uncertainty in the global markets, volatile foreign exchange rates and increase
in cotton and yarn prices are likely to negatively affect growth and
profitability for the textile exports.
The company is looking grow selectively in high value added segments
within textiles, for maximum capital efficiency as well as de-risked business
model. It is moving steadily towards a verticalized setup of fabrics along with
garmenting, which offers much better returns profile along with more robust
business model.
BUSINESS REVIEW AND DEVELOPMENTS
DENIM
Denim business achieved 18% growth in volume at 105 mn. mtrs, highest
ever volume in last decade. The average price realization per mtr also grew by
6%. Driven by both increase in volume as well as selling price the Revenue grew
by 22%. The growth is driven by both domestic as well as export markets.
WOVEN FABRICS
Woven Fabrics business achieved 19% growth in volume at 103 mn. mtrs,
highest ever volume. The average price realization per mtr also grew by 8%.
Driven by both increase in volume as well as selling price the Revenue grew by
26%. The growth is driven by domestic market which grew by 23%.
GARMENTS
Garments which is part of Arvind’s verticalisation strategy, is now on
growth momentum. During the year, Garments business has registered growth in
Revenue of 33% driven by volume growth of 23%. The company manufactures Jeans,
Shirts and Knitted garments at its Garments plants situated in and around the
city of Bangalore. The Company has set-up plant for manufacturing Suits through
joint venture company Arvind Goodhill Suit Manufacturing Private Limited.
OUTLOOK
The Company is now at an inflection point with potential break-out
growth in Brands and Retail business and strong growth in Textile business led
by Woven fabrics and vertical model of Garmenting. While the margins in Textile
business are expected to be maintained at present level, they are sensitive to
currency fluctuations. Brands and Retail business is expected to witness margin
expansion.
With strong portfolio of foreign and domestic brands, the Company is now
poised to lead the branded apparels space in India. While with brands like
ARROW, USPA, Tommy Hilfiger, CK, Nautika, Flying Machine etc. Arvind will
dominate menswear category, it is building meaningful presence in Kids,
Innerwear and Women category. With successful re-positioning of Megamart as
Value Retail format, it will not only drive the growth but will lead to margin
expansion too.
Under the above scenario, the Company is expecting revenue growth of
about 22-24% for the year 2014-15. The Textiles business may achieve growth of
around 15%, whereas Brands and Retail business may clock growth in excess of
30%.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30TH, 2014
(RS. IN MILLIONS)
|
SR. NO. |
PARTICULARS |
Quarter Ended
30.06.2014 |
|
|
|
(Unaudited) |
|
1 |
Income from Operations |
|
|
|
Net Sales/ Income from
Operations [Net of excise duty] |
12638.600 |
|
|
Other Operating Income |
136.700 |
|
|
Net Sales/Income from Operations [Net] |
12775.300 |
|
|
|
|
|
2 |
Expenditure |
|
|
|
Cost of Material Consumed |
5492.500 |
|
|
Purchase of Stock In Trade |
155.300 |
|
|
Project Expenses |
38.300 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress and Stock In
Trade |
(19.200) |
|
|
Employee Benefits Expenses |
1346.200 |
|
|
Depreciation and Amortization Expenses |
301.300 |
|
|
Power and Fuel |
1147.300 |
|
|
Stores Consumption |
1080.600 |
|
|
Other Expenses |
1578.400 |
|
|
Foreign Exchange Loss / (Gain) |
(54.800) |
|
|
f) Total |
11065.900 |
|
|
|
|
|
3 |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
1709.400 |
|
|
|
|
|
4 |
Other Income |
366.400 |
|
|
|
|
|
5 |
Profit Before Interest and Exceptional Items (3+4) |
2075.800 |
|
|
|
|
|
6 |
Interest |
790.800 |
|
|
|
|
|
7 |
Profit After Interest but before Exceptional Items (5-6) |
1285.000 |
|
|
|
|
|
8 |
Exceptional Items |
(1.700) |
|
|
|
|
|
9 |
Profit from Ordinary Activities before Tax (7+8) |
1283.300 |
|
|
|
|
|
10 |
Tax Expense |
|
|
|
Current Tax |
90.000 |
|
|
Deferred Tax |
60.000 |
|
|
MAT Credit Entitlement |
0.000 |
|
|
|
|
|
11 |
Net Profit from Ordinary Activities after Tax (9-10) |
1133.300 |
|
|
|
|
|
12 |
Extraordinary Item (net of expense) |
0.000 |
|
|
|
|
|
13 |
Net Profit for the period (11-12) |
1133.300 |
|
|
|
|
|
14 |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
2582.100 |
|
|
|
|
|
15 |
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16 |
Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
a) Basic |
4.39 |
|
|
b) Diluted |
4.39 |
|
|
|
|
|
17 |
Public Shareholding |
|
|
|
- Number of Shares |
145991798 |
|
|
- Percentage of Shareholding |
56.54% |
|
|
|
|
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of Shares |
455000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
0.41% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
0.18% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
- Number of Shares |
111762931 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
99.59% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
43.28% |
|
PARTICULARS |
Quarter Ended 30.06.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
1)
The limited review of above
unaudited financial results as required under Clause 41 of listing agreement has
been carried out by statutory auditors.
2)
The above results were reviewed by
the Audit Committee and taken on record by the Board of Directors at their
meeting held on July 30, 2014.
3)
During the quarter ended June 30,
2014, the Company has provided depreciation on fixed assets considering useful
lives specified in Schedule II of the Companies Act, 2013 or re-assessed by the
Company. Accordingly, the useful life of certain assets required a change from
previous estimates. Management believes that the revised useful lives of the
assets reflect the periods over which these assets are expected to be used. As
a result of change, the charge for depreciation for the quarter ended June 30,
2014, is lower by Rs. 78.500 Millions for the assets held as at April 01, 2014.
4)
Other Income for the quarter
includes profit on sale of Investments of Rs. 159.700 Millions.
5)
Exceptional Item represents
Retrenchment Compensation paid to workers retired under Voluntary Retirement
Scheme.
6)
The figures for the quarter ended
March 31, 2014 are the balancing figures between audited figures In respect of
the full financial year and the unaudited published year-to-date figures upto
the third quarter ended December 31, 2013.
7)
Figures of the previous quarter/year
have been regrouped wherever necessary.
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(RS. IN MILLIONS)
|
SR. NO. |
PARTICULARS |
Quarter Ended
30.06.2014 |
|
(Unaudited) |
||
|
1 |
Segment Revenue
[Net Sales/ Income from Operations] |
|
|
|
Textiles |
12396.300 |
|
|
Brand and Retail |
185.500 |
|
|
Real Estate |
0.000 |
|
|
Others |
271.700 |
|
|
Total |
12853.500 |
|
|
Add: Other Unallocable Income |
0.000 |
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
78.200 |
|
|
|
|
|
|
Net Sales / Income
from Operations |
12775.300 |
|
|
|
|
|
2 |
Segment Results
[Profit before Interest and Tax] |
|
|
|
Textiles |
1906.600 |
|
|
Brand and Retail |
(31.300) |
|
|
Real Estate |
(0.900) |
|
|
Others |
(29.600) |
|
|
Total |
1844.800 |
|
|
|
|
|
|
Less :Interest |
790.800 |
|
|
Less : Other Unallocable Expenses |
(229.300) |
|
|
|
|
|
|
Profit Before
Extraordinary Items and Tax |
1283.300 |
|
|
|
|
|
3 |
Capital Employed |
|
|
|
Textiles |
28629.800 |
|
|
Brand and Retail |
662.400 |
|
|
Real Estate |
1662.800 |
|
|
Others |
1188.700 |
|
|
Unallocable |
19910.400 |
|
|
Total Capital
Employed In Company |
52054.100 |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
(a) Bills Discounted |
1517.200 |
1175.900 |
|
(b) Claims
against the Company not acknowledged as debts |
83.800 |
78.200 |
|
(c) Guarantees
given by the Banks on behalf of the Company |
654.100 |
694.800 |
|
(d) Guarantees
given by the Company to Banks on behalf of Subsidiaries/ Joint Ventures |
5333.100 |
3989.900 |
|
(e) Disputed
Demands in respect of Excise/Custom Duty |
337.100 |
293.300 |
|
Sales Tax |
203.700 |
203.700 |
|
Income Tax |
47.900 |
190.400 |
|
Service Tax |
7.000 |
8.400 |
|
NOTE: Future cash
outflows in respect of (e) above are determinable only on receipt of judgements/
decisions pending with various forums/ authorities. |
||
FIXED ASSETS:
Tangible Assets
v Leasehold Land
v
Freehold
Land
v
Building
v
Plant
and Machinery
v
Furniture
and Fixtures
v
Office
Equipments
v
Leasehold
Improvements
v
Vehicles
Intangible Assets
v Patent and Technical Knowhow
v Computer
Software
PRESS RELEASE
ARVIND LIMITED: KNITTING PRETTY
Arvind's scrip now trades at 18.6 times FY16 estimated earnings, more
than double its historical average one-year forward price-earnings ratio of 7.2
times
Mumbai September 24, 2014
The shares of Arvind Limited, Ahmedabad-based textile
company, which had paused for three years after rallying strongly between 2009
and 2011, have since surged from Rs 67.60 (its 52-week low on August 8, 2013) to
Rs 336, close to its all-time high in April 1992.
This rally, specially since January, is proof of
the Arvind story clicking with investors. According to the company, the story
is of building on its success as a textile and denim player and striving to become
a brands, retail and garment company as well.
"We took two key steps, a clear strategic
direction and focus on operational excellence," says Jayesh Shah, director
and chief financial officer.
"While we are on a strong footing globally
on operational excellence in textiles, we continue to strive for greater
heights. In brands and retail, we are building a business that meets global
standards of retailing and supply-chain capabilities."
Besides, it has de-merged the real estate
business to de-risk its investors. New areas of business have been
identified to push growth. These include the launch of the e-commerce business
and expansion in technical textiles, to cater to business-to-consumer (B2C) and
business-to-business (B2B) operations, respectively.
The brands and retail
business have contributed
significantly to Arvind's re-rating story. It has established strong
partnerships with global brands like Tommy Hilfiger, Debenhams, Nautica, Next,
Hanes, GAP and others.
Even as the textile business, two-thirds of
revenues in FY14, continues to do well, analysts expect its brands and retail
business (28 per cent of revenues) to be a key growth engine.
Other factors that have contributed to the rally
include delivering results and meeting/beating investor expectations;
macroeconomic factors like favourable currency, cotton, political stability;
higher coverage by top analysts; and marquee/foreign institutional investors
(FIIs). At the end of the June quarter, FIIs owned 23.3 per cent of Arvind
compared with 15.7 per cent at the end of the September quarter. Promoter
holding remains stable at 43.5 per cent.
"Though we believe this is a long journey,
in terms of capital allocation, there is greater focus on asset-light businesses
like brands and garmenting which also strengthens the fabric business model.
Our textiles business is also becoming more
differentiated on capabilities in the global context," Shah says.
It is a strategy similar to what Arvind initiated in the
1990s, of balancing B2B and B2C businesses (though majorly in denim).
The company expects to reach $3 billion in topline by
FY19, with $1 billion targeted to come from brands. The major growth drivers
will be B2C businesses, growing at 30-35 per cent annually, whereas large
growth will be led by garmenting operations in textiles. Arvind expects the
e-commerce business to contribute Rs 10000.000 Millions to its revenues in
three years.
In a report last week, Niket Shah and Atul Mehra
of Motilal Oswal Securities said, “We believe Arvind’s foray in e-commerce will
provide a huge edge, given its backward integration into textiles and its
strong expertise in supply-chain management. We believe the tie-up of GAP and Children’s place complemented by the
launch of e-commerce and restructuring makes a strong case for re-rating.”
The management believes branded garments
business is the only category where e-commerce players are earnings before
interest, tax, depreciation and amortisation (Ebitda)-positive, which means it
should contribute to profits from the start.
The challenge that Arvind still faces is the
level of debt at nearly Rs 30000.000 Millions, reflecting a consolidated
debt-equity ratio of 1.27 at the end of FY14. However, the company is confident
that over the next two-three years, it will grow in absolute terms but reduce
leverage. Measures to turnaround MegaMart, its apparel retail stores, over the
next two years should add to Arvind’s profits.
While Arvind is planning a Capex of Rs
4000.000-5000.000 Millions for the next three-four years, it will be funded
through operating cash flows. "Beyond this, we also have Arvind's land
bank that we will continue to monetise opportunistically," Shah adds.
Analysts expect land (not a part of the demerged
real estate business) monetisation to fetch up to Rs 5000.000 Millions.
As a result of these initiatives and driven by
brands and textiles expansion, analysts at Standard Chartered Securities expect
Arvind's return on capital employed to improve by more than 300 basis points
over FY14-17 to 23 per cent. They also believe Arvind's brands business could
list around FY17-18. Such a move could help unlock value for shareholders.
Most analysts remain positive on the company.
The flip side is the average target price of Rs 289 of analysts polled by
Bloomberg since July, which indicates that the good news priced in. Arvind’s
scrip now trades at 18.6 times FY16 estimated earnings, more than double its
historical average one-year forward PE of 7.2 times. While the price of its key
raw material cotton is on a decline, execution in brands business is the key
risk. Investors with a long-term horizon can consider the stock on a meaningful
correction.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No xist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record exists
to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.75 |
|
|
1 |
Rs. 100.07 |
|
Euro |
1 |
Rs. 77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.