The Ahmedabad-based leading textile company Arvind Ltd., has reported 11.62 per cent decline in consolidated net profit from continuing operations to Rs. 87 crore in the Q 3 ended 31st December 2022. This is mainly due to weak demand for denim garments.
While demand and volumes of woven fabric remained steady during the quarter, denim continued to struggle due to lower demand and over-supply.
In a regulatory filing, the company said that it has posted a consolidated net profit from continuing operations of Rs. 98.44 crore in the same period last fiscal.
The company’s revenue from operations during the quarter under review was Rs. 1,979.79 crore as against Rs 2,270.07 crore in the year-ago period.
Total expenses were lower at Rs. 1,899.7 crore as compared to Rs. 2,134.54 crore in the same period last fiscal.
It is worth mentioning here that as per the company, the overall textile revenues were lower as volumes were lower especially in the denim segment. The price realisation started to trend down since Q2 reflecting the recent softness in raw material prices.
The company continued to deliver on its stated objective of reducing its long-term debt.
During Q3 this quarter, long-term debt saw a net reduction of Rs. 135 crore taking the outstanding to Rs. 739 crore as on 31st December 2022.
The company’s revenue from the textiles segment, which contributes about 80 per cent of the company’s total revenue, fell 19.2 per cent to Rs.15.49 billion in the quarter. Revenue from denim, which is included in the textiles segment, fell 44.8 per cent.
The company believes that the macro-environment in US and EU markets has started to show some improvement in the outlook, though the overall prognosis still remains cautious given still higher-than-target inflation in US, continuing war in Europe and reopening of China.”
The company supplies apparel to brands like Calvin Klein, Ed Hardy and Tommy Hilfiger.
In July 2022, Arvind Ltd., said the parent company sold its 100 per cent stake of wholly owned subsidiary, Arvind Internet Ltd., to Bigfoot Retail Solutions Pvt. Ltd., for a consideration of Rs. 159 crore and accordingly, the group has considered its wholly owned subsidiary Arvind Internet Ltd., as discontinued operations.
