Arvind Fashions rises 5 percent on market debut
today Mar 11, 2019
Arvind Fashions Ltd, which deals in apparels and accessories, made an impressive market debut following a demerger process witnessing a 5 percent rise on its first day.
The company, which retails brands like Calvin Klein, Tommy Hilfiger, and Gap in India, was demerged from parent co Arvind Ltd.
In December 2018, Arvind Fashions had issued its one share of Rs 4 each to Arvind Limited's shareholders for five shares of Rs 10 each.
The company is optimistic of strong performances from Arvind Fashions Ltd and expects to double revenue over the next five years on the back of retail expansion.
The fashion unit of Arvind had reported revenue of Rs 4,800 crore (approx $685.7 million) during the last fiscal.
The company has earmarked an investment of Rs 150 crore per year on its retail expansion and will strategically open stores in tier 3 cities. It is also looking to strengthen its online presence to boost sales from across the country.
“We intend to double the revenue over the next four-five years. EBITDA margin (operating margin before depreciation) should expand by 75-100 basis points (bps) every year. The bottom line will grow much faster than the top-line due to higher operating leverage,” said Kulin Lalbhai, executive director of Arvind Fashions.
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