Arvind Fashion : Value Unlock or Trap

Hello everyone,

Thanks for sharing your thoughts in this thread. It helped me a lot in understanding the business.

In the Q2FY24 PPT, they’ve mentioned about “minority interest” and the profit that’s transferred to them is significant amounting to almost 40%.

I understand Flipkart holds a minority share in Flying machine brand. But I’ll be damned if 40% of overall profit is transferred to them and hence I’m betting it’s not Flipkart. Who’s this minority interest?

There was a question regarding this in Q2FY24 concall and mgmt mentioned it is linked to Tommy and CK.

So,
Flying machine – Flipkart owns minority interest.
Tommy and CK – Around 40% is owned by someone else(Arrived at this number by profit sharing percentage of latest quarter)
USPA and Arrow – Appears to me that whole profit stays with the company.
This implies company may own only 4 complete brands. Even if the company grows profit in the future, won’t significant part of profit goes out of company?