At a time when macroeconomic environment posed challenges for textile companies, thanks to stagnant economy, high inflation and higher interest rates, the textile major Arvind has reported better-than-expected earnings in the third quarter ended December 31, 2013.
Arvind, an integrated textile and branded apparel players based in India, has posted 35.56 per cent growth in its consolidated net profit at Rs 102.17 crore in the October-December quarter, helped by higher revenues in textile and retail segments.
A flagship company of the Lalbhai Group, the company had posted a consolidated net profit of Rs 75.37 crore in the corresponding period last year, Arvind said in a filing to Bombay Stock Exchange.
Net sales of company witnessed a surge of 27.98 per cent at Rs 1,792.20 crore in the December quarter as compared to Rs 1,400.36 crore in the same period last year, helped by good demand in the export market. The denim maker saw sharp rise in its export volume amid recovery in export markets like US and Europe.
In Q3 FY’14, the company’s total revenue rose by 26.26 per cent to Rs 1,774.28 crore from Rs 1,405.16 crore in the same period a year ago.
Segment wise, textile division’s revenue, which contributes 66 percent to total revenue, grew 24 percent on year-on-year basis to Rs 1,180.5 crore. On the other hand, retail, which accounts for 30 percent of total revenue, rose 30.5 percent to Rs 544 crore in the December quarter.
Commenting on performance, Arvind Ltd - Director and Chief Financial Officer, Jayesh Shah said, "The revenue of textiles segment has grown by 24 per cent led by growth of 20 per cent in denim, 21 per cent in woven fabrics and 35 per cent in garments manufacturing. Our brands and retail business has registered very strong growth of 30 per cent.”
Expressing optimism over future growth, he said that the company expects the current growth momentum to continue for the near future.