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The Textile Magazine
NOVEMBER 2011
Arvind
net profit up 58%
Commenting on the results as
well as the outlook of the company,
Mr. Jayesh Shah, Director & Chief
Financial Offcer, said: “While rev-
enue growth continues to be led by
Brands & Retail business, operating
margins have improved on account
of improvement in EBITDA margin
in textile business by around 3%.
Textile business has improved the
margins despite sharp increase in
raw material cost. We believe that
Arvind is well poised to achieve
20% revenue growth during the cur-
rent fnancial year on account of
robust growth in Brands & Retail
businesses and capacity expansion
in woven fabrics. We should be able
to maintain the operating margins
as we expect the cotton prices to re-
main stable at the current level.”
As mentioned earlier, textile busi-
ness grew by 18 per cent, whereas
the denim business declined by 8
per cent. “We are seeing inventory
corrections taking place in denim
across the globe and the people were
expecting the price fall, which has
happened now”, Mr. Shah said.
As far as brand and retail is con-
cerned the company had once again
an excellent growth of 46 per cent,
out of which 25-30 per cent of the
growth was on account of volume
and the balance on account of price
increase.
The company is expanding capac-
ity during the second half of the cur-
rent fnancial year for woven fabric,
shirting, and khaki. “We are quite
confdent that we will achieve our
target of close to Rs. 5,000 crores
top line this year”, said Mr. Shah.
“As far as denim is concerned,
we are seeing the demand for denim
fabrics actually starting to become
normal, because the prices of fab-
rics have become stable on account
of stable cotton prices and we don’t
see cotton prices now going down
further. So, we think that we should
be going back to our 100% utiliza-
tion of denim some time in Decem-
ber onwards. So starting December
through March we should see a sig-
nifcant growth in our denim volume
going up to about 8.5 to 9 million
every month”, added Mr. Shah.
w
Arvind Ltd. has registered 58 per
cent growth in consolidated net profit
for the quarter ended September 30,
2011, at Rs. 62 crores as against Rs.
39 crores in the corresponding quar-
ter of the previous year. The consoli-
dated revenue for the quarter is up by
23 per cent at Rs. 1,256 crores (Rs.
1,025 crores). The revenue growth of
46 per cent in branded apparel and
retail business segments and 18 per
cent revenue growth in textile busi-
ness were the key driver of such an
impressive financial performance of
the company.
Mr. Jayesh Shah,
Director & CFO, Arvind Ltd.
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