Indian textile conglomerate Arvind Limited has released financial results for the second quarter ended September 30, 2017.
During the reporting period,the textile manufacturer’s consolidated net profit stood at Rs. 64.50 crores. Net profit for the same period last year was Rs. 76.65 crores.
Total income during the second quarter increased to Rs. 2,654.03 crores from Rs. 2,353.22 crores in the corresponding quarter of 2016.
The GST (Goods and Service Tax) implementation in the beginning of the second quarter reportedly created a tough environment for the company to secure a good business.
The new tax regime impacted the textile businesses adversely in the domestic market, said Jaayesh Shah, Arvind Ltd. Director and CFO.
The textile company is hopeful of having a good business in the third quarter as it expects that the transitional impact of GST will fade away which will bring normalcy to the economy.
The country’s leading denim manufacturer will, however, continue to expand its operations in the country. It has recently inked deals with the Gujarat and Jharkhand Governments to make investments worth Rs. 300 crores and Rs. 400 crores, respectively, for the establishment of manufacturing units.
The upcoming manufacturing unit in Dahegam (Gujarat) will produce over 24 million garments.
On the other hand, the facility in Jharkhand will create job opportunities for around 10,000 youths, especially women.