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Arvind Fashions announced on Saturday, 21 February 2020, that CARE Ratings cut long-term ratings of the company to CARE A- from CARE A. The credit rating agency changed outlook from negative to stable.
CARE reasoned that the downgrade was due to the company's continued losses in the business and consequent reliance on borrowing.
"Continued losses in the business, though at lower levels compared to Q1 FY20 and consequent reliance on borrowing, though proposed rights issue is expected to reduce the borrowing levels," CARE said in a release.
Arvind Fashions reported a consolidated net loss of Rs 52 crore in Q3 December 2019 as against a net profit of Rs 6.95 crore posted in Q3 December 2018. Net sales declined 9.8% to Rs 1135.45 in Q3 December 2019 over Q3 December 2018. The company announced its Q3 December 2019 result on 11 February 2020.
Arvind Fashions is a lifestyle powerhouse with a strong portfolio of fashion brands catering to consumers across the sub-categories and price point. The company owns renowned brands like US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora.
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