Arvind Limited, one of the largest integrated textile, apparel and branded apparel players have announced their financial results for Quarter ended 30th June, 2008.
The sales for the Quarter are up by 6% at Rs.545 Crores as against Rs.515 Crores in the corresponding quarter last financial year. Profit after tax was down by 35% at Rs.4 Crores compared to Rs.6 Crores in the corresponding quarter previous financial year.
The branded apparel and retail business of the company has returned yet another quarter of impressive performance. Sales grew by 35% and has reported PBIT of Rs. 6.30 Crores as compared to loss during the corresponding quarter last financial year. The company continues to expand its value apparel retail format under the MegaMart.
Apart from the market led factors in the textile business, the company has been impacted by significant increase in power cost, dyes & chemical cost and rapidly rising cotton cost. While apart from denim all other textile and apparel products are running at optimum capacity utilization, the same is not reflected in the earnings as cost pushes are hurting them. The lower earnings have been to a large extent offset by garments, shirting and the Branded apparel business.
Commenting on the results, Mr. Jayesh Shah, Director and Chief Financial Officer said: “We are passing through one of the most challenging periods in the recent past, as we are in an unique competitive landscape where the costs are escalating at an unprecedented pace and are at a historical high while our main consumer markets are battling recession.
We are cautious but confident of implementing our transformation plan, which calls for a complete overhaul of the areas of business as well as the way we do business. At the same, our MegaMart and branded apparel business continue to return better performance quarter after quarter.”
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