Leading textile manufacturer Arvind Ltd.’s consolidated net profit rose by almost 80 per cent in July- September quarter of current fiscal. It was Rs. 125.02 crore for the September quarter compared to net profit of Rs. 69.58 crore in the same quarter of last financial year.
The rise in net profit is helped by gains from exceptional items.
In a regulatory filing, the leading textile company said that its revenue from operations was up by 2.93 per cent at Rs. 2,169.81 crore compared to Rs. 2,107.97 crore in the corresponding period of the previous fiscal.
The company had a gain of Rs. 40.52 crore from exceptional items, which includes profit on the sale of a subsidiary and provision from the value of land in Gujarat. In its earning statement, the company said that Profit After Tax from continuing business and before the exceptional item was Rs. 85 crore. Accounting for one-time items, PAT was reported at Rs. 125 crore.
Its total expenses were Rs. 2,072.45 crore, up by 3.50 per cent in the September quarter of FY ’23 against Rs. 2,002.31 crore a year ago.
The company’s revenue from textiles was up by 1.88 per cent at Rs. 1,758.98 crore from Rs. 1,726.49 crore in the July-September period of the last year. The company said that overall textile revenues grew by 3 per cent as woven and knits volumes held steady. Higher price realisation helped hold unit margins, though it suffered in percentage terms.
Revenue from advance materials rose by 5.07 per cent to Rs. 313.43 crore in the second quarter of FY 2022-23 over Rs. 298.28 crore.
The company said that commentaries issued by key brands in August/September indicate a weaker outlook for demand. Many of its export customers have postponed/ reduced demand accordingly.
