Arvind’s Q1 net down 47%, worker unrest to blame

Friday, 27 July 2012

Leading textile and branded apparel player Arvind announced its financial results for the quarter ended June 30, 2012. The company, which had to face labour agitation at its Naroda plant that affected company’s production, said it recorded a profit after tax (PAT) of Rs 32 crores in the first quarter ended June 30, 2012, as compared to Rs 61 crores in the corresponding quarter of previous fiscal.

Releasing its quarterly results, Jayesh Shah, Director and CFO, said in a statement that this year’s first quarter results could not be compared with the last fiscal’s period. “We had an abnormal situation due to the strike in two of our plants and hence it will not be appropriate to compare these results with that of previous year. Our textile business is witnessing strong growth and we are confident that in the coming quarter there will be growth in volume as well as in margins”, he said.

The company’s revenue for the first quarter ended June 30, 2012 stood at Rs 1,157 crores (Rs 1,211 crores). At the operating level, consolidated EBIDTA for the quarter stood at Rs 129 crores. He added that the company’s operations got affected due to workers’ strike in June. Despite reduction in selling prices by 10 to 14 per cent on various textile products, caused by a fall in cotton prices, revenue for the first quarter was strong on account of robust growth in textile volumes and 9 per cent revenue increase in brand and retail business.

The company had announced a 21 per cent growth in revenue and 48 per cent growth in profit after tax for the year ending March 31, 2012. Its revenue for the year stood at Rs 4,925 crores as against Rs 4,085 crores for the previous year.

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