For the third quarter of FY ’25, Arvind Limited reported double-digit growth in both consolidated sales and profit after tax (PAT). With consolidated sales of US $ 241 million, the textile and apparel company saw an 11 per cent year-over-year rise from its Q3 FY ’24 revenue of US $ 218 million. At US $ 12 million, its PAT increased 13 per cent from US $ 10.62 million in the same time last year to reach the company’s highest level in ten quarters.
The company’s consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 10 per cent from US $ 25 million to US $ 27.4 million in the previous year. This quarter, Arvind’s EBITDA margin was 11.3 per cent, down from 11.4 per cent during the same period last year.
With a bigger proportion of knitted goods in the basket overall, the present product mix trend indicates that Arvind recorded a 21 per cent year-over-year volume rise in segments like clothing.
Due to a number of factors, including a shift in the product mix towards lower-value items, diluted growth value, and realignment within the mass transport and industrial segment of the business, the company experienced a muted 9 per cent increase in revenue for its apparel, merchandising, and design (AMD) segment of US $ 43.4 million. With a 15 per cent margin, EBITDA for the same was US $ 6.6 million. Arvind is upbeat and believes AMD will continue to thrive in the future, according to its media statement.
With an EBITDA of US $ 20.44 million and an 11 per cent increase in revenue of US $ 182 million, Arvind’s textile division posted an 11.2 per cent margin. The business ascribed its expansion to the success of its verticalisation strategy, the acquisition of new clients, the diversification of its product lines, and generally higher market demand. It is anticipated that the division will keep growing.
Despite a bad season for denim, other areas including woven and denim fabric saw volume growth of 7 per cent and 19 per cent, respectively, on an annual basis. Nonetheless, woven fabric reached 100 per cent+ utilisation with a volume of 35 million meters, which was its best level in the previous three years.
