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The Textile Magazine
MAY 2012
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37
The growth in revenue is driven
by 44 per cent expansion in brands
& retail business and significant
increases in prices of fabrics
caused by very high cotton prices.
Textile business grew by 15 per
cent. Within textiles, denim grew
by 18 per cent and wovens by 11
per cent. However, there was mar-
ginal drop in EBIDTA margin to
12.2 per cent for the year against
13 per cent for the previous year as
there was a drop in operating mar-
gins in brands & retail business as
the company had to absorb part of
higher inventory cost.
The consolidated revenue for the
quarter ended March 31, 2012, is up
by six per cent at Rs. 1,278 crores as
against Rs. 1,202 crores in the cor-
responding quarter of the previous
year.
Commenting on the results as
well as outlook of the company,
Mr. Jayesh Shah, Director & Chief
Financial Officer, said: “The finan-
cial year 2011-12 was extremely
challenging for Arvind. The year
was characterized by global slow-
down, weak retail demand at home,
high volatility in cotton prices and
foreign exchange and higher interest
cost. It is satisfying to note that in
the backdrop of such a challeng-
ing environment, our company has
closed the financial year 2011-12
with 48 per cent growth in net
profit. The Board has recommended
a dividend @ 10%. Hitherto the
company was conserving cash for
reduction of the debt. The broad-
based portfolio of businesses has
brought predictability in our
earnings. Further the company
is likely to be cash surplus in the
coming few years after meeting
all our growth requirements. This
has led the Board to bring back the
company on the dividend list after
a gap of six years.”
The count of company-run stores
has risen from 428 in 2010-11
to 568 in 2011-12, including
the Mega Mart format outlets.
Through the stores, Arvind sells
premium foreign brands like
Arrow and US Polo, amongst
others. “Our target is to be a Rs.
8,000-crore plus revenue company
by 2015”, Mr. Shah added.
Mr. Sanjay Lalbhai, Chairman
& Managing Director, observed:
“We are predominantly investing in
brands, retail and technical textiles.
Our total outlay for this year (FY13)
will be around Rs. 300 crores. Of
this, Rs. 50 crores will be spent on
becoming self-reliant in power. Of
the remaining Rs. 250 crores, 40-50
per cent will be invested in textiles,
while the rest shall go to brand and
technical textiles”.
w
corporate news
Mr. Jayesh Shah
Director & Chief Financial Officer