Home / Knowledge / News / Textiles / Arvind net profit up despite sharp increase in input costs
Arvind net profit up despite sharp increase in input costs
21
May '11
Arvind limited, one of the largest integrated textile, apparel and branded apparel player have registered 218% growth in consolidated Net Profit for the quarter ended 31st March 2011. It has earned consolidated Net Profit of Rs. 63 Cr. as against Rs. 20 crores in the corresponding quarter of previous year on account of strong volume and price growth recorded by Textile and Brands & Retail businesses.

The consolidated revenue for the quarter is up by 59% at Rs.1201 crores as against Rs.756 crores in the corresponding quarter of the previous year. At the operating level, consolidated EBIDTA increased by 83% at Rs.179 crores as against Rs. 97 crores for the corresponding quarter of the previous year.

For the full year ended on 31st March 2011, the Company has recorded 230% growth In Net Profit at Rs. 165 crores as against Rs. 50 crores for the previous year ended on 31st March 2010.as a result of 25% growth in Revenue at Rs. 4090 crores as against Rs. 3261 crores for the previous year ended on 31st March 2010. At the operating level, consolidated EBIDTA for the year ended 31st March 2011, Increased by 36% at Rs.S56 crores as against Rs. 410 crores for the previous year ended on 31st March 2010.

The revenue growth of 47% in Branded Apparel and Retail business segments and 20% revenue growth in Textile business were the key driver for such an Impressive financial performance at the consolidated level. Within Textiles, Denim grew by 29% and Woven fabrics grew by 20%.

Commenting on the results as well as outlook of the Company, Mr. Jayesh Shah, Director & Chief Financial Officer said: "Arvind has achieved major millstone of crossing annual revenue of Rs. 4000 crore during this year. We have not only achieved robust revenue growth but we also improved the operating profit margins despite sharp increase in input costs which vouches for our ability of increasing the selling prices In both domestic & international markets.

“As this is the most exciting phase for Indian textile Industry as macro economic factors like increase in per capita Income, burgeoning middle class, rapid urbanization, increased organized retailing etc are driving the significant growth in Indian market for textiles & clothing. Arvind is fully geared to seize this never before opportunity with the strengths it has built over a period of time. We are also on track as far as our plans for unlocking the value of our land-bank which will lead to significant improvement in shareholders' value."

The Board of Arvind Limited has also approved the merger of Arvlnd Products Limited (APL), a listed company, with Arvind Limlted. Arvind Limited controls 54% equity stake in APL. APL is operating in textile business only comprising of cotton yarn, woven Khakhi fabrics and traditional Volls business. Yarn and Khakhi units have significant linkages with Arvind and hence the proposed merger will bring significant operational synergies leading to savings in costs for the combined entity. The share exchange ratio as approved by the Board is 1 share of Arvind Limited for 11 shares of APL. Consequent to merger share capital of Arvind Limited will increase by Rs. 3.41 crores.

Arvind limited


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.6%
No
13.4%
Skip
9.0%

Total Votes: 67

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.2%
No
28.4%
Skip
10.4%

Total Votes: 67

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.1%
No
10.4%
Skip
4.5%

Total Votes: 67

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.6%
No
11.9%
Skip
13.4%

Total Votes: 67


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search