Arvind’s brand and retail biz lead to 58% growth

Tuesday, 08 November 2011

Vertically integrated textile player Arvind Ltd registered 58 percent growth in consolidated net profit for the quarter ended September 30. The company earned consolidated net profit of Rs 62 crores against Rs 39 crores recorded in the corresponding quarter of the previous year on account of improvement in EBITDA margin. The consolidated revenue for the quarter is up by 23 per cent at Rs 1, 256 crores as against Rs1, 025 crores in the corresponding quarter of the previous year.

At the operating level, consolidated EBITDA increased by 40 per cent at Rs 178 crores as against Rs 128 crores for the corresponding quarter of previous year. Revenue growth of 46 per cent in branded apparel and retail business segments and 18 per cent revenue growth in textile business was the key driver to growth.

The company now expects to achieve 20 per cent revenue growth during the current financial year on account of robust growth in brands and retail businesses and capacity expansion in woven fabrics to 12 mm by January 2012 from current 72 mm. Although it is currently using 95 per cent of its 108 mm denim capacity on back of poor demand from international buyers, it is bullish on the domestic market.

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