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Net profit shoots up at Arvind Ltd in Q2
31 Oct '09
2 min read
Arvind Limited, one of the largest integrated textile, apparel and branded apparel players earned Net Profit at Rs. 15.19 crores for the 2nd quarter of current year as against Net Profit of Rs. 1.64 crores in the corresponding quarter of the previous year on account of volume growth, higher price realization and lower energy cost.
During the Quarter Company completed the demerger of its Brands & Retail business in to separate 100% owned subsidiary companies with effect from 1st April 2009. Hence the results are not comparable. Excluding the figures of now demerged brands & retail businesses the revenue for the quarter are up by 25% at Rs.600 crores as against Rs.479 crores in the corresponding quarter of the previous year. At the operating level, EBIDTA increased by 44% at Rs.84 crores as against Rs. 58 crores for the corresponding quarter of the previous year.
During the quarter under review Denim fabric registered growth of 25% in volumes over the corresponding quarter of previous year, following 17% growth in export volume and 31% growth in domestic volume as a result of company's aggressive market share acquisition plan in domestic market. Domestic volume now constitutes 52% of the total volume of Denim fabric. As far as Shirting fabric is concerned, the twin approach of product differentiation & price competitiveness has led to 35% growth in the domestic branded apparel and retail market. The Company has set-up 500 shop-in-shop counters for retaining functional & performance fabrics called “intellifabrix” across the country. Brand & Retail Businesses also grew by 24% during the quarter.
Commenting on the results, Mr. Jayesh Shah, Chief Financial Officer and Director said: “The turnaround in the business which started from the first quarter as a result of aggressive initiatives taken by the company on various fronts like new customer acquisition in export markets, retail thrust in the domestic market, productivity improvements and cost rationalization is extending in this quarter also. The outlook for the year remains positive as result of robust demand for all the product categories and lower energy cost. ”
Mr. Jayesh Shah further stated that “while the Board of Directors of the Company has passed an enabling resolution to raise equity of Rs. 250 cr. there are no immediate plans to raise the Capital.”
During the Quarter Company completed the demerger of its Brands & Retail business in to separate 100% owned subsidiary companies with effect from 1st April 2009. Hence the results are not comparable. Excluding the figures of now demerged brands & retail businesses the revenue for the quarter are up by 25% at Rs.600 crores as against Rs.479 crores in the corresponding quarter of the previous year. At the operating level, EBIDTA increased by 44% at Rs.84 crores as against Rs. 58 crores for the corresponding quarter of the previous year.
During the quarter under review Denim fabric registered growth of 25% in volumes over the corresponding quarter of previous year, following 17% growth in export volume and 31% growth in domestic volume as a result of company's aggressive market share acquisition plan in domestic market. Domestic volume now constitutes 52% of the total volume of Denim fabric. As far as Shirting fabric is concerned, the twin approach of product differentiation & price competitiveness has led to 35% growth in the domestic branded apparel and retail market. The Company has set-up 500 shop-in-shop counters for retaining functional & performance fabrics called “intellifabrix” across the country. Brand & Retail Businesses also grew by 24% during the quarter.
Commenting on the results, Mr. Jayesh Shah, Chief Financial Officer and Director said: “The turnaround in the business which started from the first quarter as a result of aggressive initiatives taken by the company on various fronts like new customer acquisition in export markets, retail thrust in the domestic market, productivity improvements and cost rationalization is extending in this quarter also. The outlook for the year remains positive as result of robust demand for all the product categories and lower energy cost. ”
Mr. Jayesh Shah further stated that “while the Board of Directors of the Company has passed an enabling resolution to raise equity of Rs. 250 cr. there are no immediate plans to raise the Capital.”
Arvind Limited
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