Arvind, one of the largest integrated textile and branded apparel players recorded 21
per cent growth in revenue and 48 per cent growth in profit after tax for the year ending March 31, 2012. Revenue for the year stood at Rs 4,925 crores as against Rs 4,085 crores for the previous year. Net profit after tax from ordinary activity stood at Rs 245 crores compared to Rs 165 crores in the previous financial year.
At the operating level, consolidated EBIDTA for the year ended March 31, 2012, increased by 14 per cent at Rs 602 crores as against Rs 529 crores for the previous year. The board of directors has recommended dividend of 10 per cent for the year 2011-12. The growth in revenue is driven by 44 per cent growth in brands and retail business and significant increases in prices of fabrics caused by very high cotton prices. The textile business grew by 15 per cent. Within textiles, denim grew by 18 per cent and wovens by 11 per cent. However, there was a marginal drop in EBIDTA margin to 12.2 per cent for the year as against 13 per cent for the previous year as there was a drop in operating margins in brands and retail business as the company had to absorb part of higher inventory cost.
The consolidated revenue for the quarter ended March 31 is up by 6 per cent at Rs 1,278 crores as against Rs 1,202 crores in the corresponding quarter of the previous year. Commenting on the results as well as outlook of the company, Jayesh Shah, Director and Chief Financial Officer said, “The financial year 2011-12 was extremely challenging year for Arvind. It was characterized by global slowdown, weak retail demand at home, high volatility in cotton prices and foreign exchange and higher interest cost. It is satisfying to note that in the backdrop of such a challenging environment, our company has closed the financial year 2011-12 with 48 per cent growth in net profit.”
Adding further Shah said, “The Board has recommended dividend at 10 per cent. Hitherto the company was conserving cash for reduction of debt. The broad based portfolio of businesses has brought predictability in our earnings. Further the company is likely to be cash surplus in coming few years after meeting all our growth requirements. This has led the Board to bring back the company on the dividend list after gap of six years.”