Arvind Ltd net profit drops 49 percent to Rs 40 crore
Textile and apparel major Arvind Ltd saw its consolidated net profit plunge 49 percent to Rs 40 crore ($5.7 million) for the third quarter ended December 2018 as compared to Rs 79 crore it had posted during the same period previous fiscal.
The company’s total income was also down by 38 percent to Rs 1,680 crore in December 2018 from Rs 2,706 crore in December 2017.
“Denim volumes were lower by 5 million meters largely on account of weak offtake by a few international customers leading to overall reduction in revenue by 7 percent. This was offset by 32 percent increase in revenue of advanced materials business,” the company said in a statement.
Commenting on the outlook, the company added, “Company expects overall growth of about 5 percent in revenue and improvement in overall profitability with textile volumes normalising in Q4.”
Arvind Ltd has earmarked an investment of Rs 500 crore to expand its textile business in Indian and is expecting Rs 12,000 crore from its textile business by 2023.
Arvind Limited is a leading player in India’s textile and apparel market. It owns the India licenses for brands like Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, Gap, and Aeropostale.
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