Arvind Ltd reports Q4 net loss of Rs 17 crore
Jun 29, 2020
Leading textile manufacturer Arvind Ltd reported a consolidated net loss of Rs 17 crore ($2.3 million) for the fourth quarter ended March 31, as against a net profit of Rs 67 crore it posted in the year-ago period.
The company’s revenue from operations was down 12 percent to Rs 1,642 crore during the quarter under review, as against Rs 1,859 crore in the corresponding period of the preceding fiscal.
Arvind Ltd’s business was impacted by Covid-19 and the subsequent lockdowns resulting in poor sales and losses especially in March.
For the financial year 2019-20, Arvind's net profit was down 60 percent to Rs 92 crore from Rs 228 crore in the previous year, while its revenue in the fiscal was down 3 percent to Rs 7,369 crore, as against Rs 7,142 crore in 2018-19.
“Covid-19 has substantially impacted the normal business operations of the group by way of interruption in production, supply chain disruption, unavailability of personnel, closure of production facility, etc during the lockdown,” the company said in a statement.
“Stoppage of production and logistics in the second half of March resulted in 42 percent drop for the month, causing an estimated revenue loss of Rs 250 crore, and corresponding EBITDA of Rs 75 crore,” it added.
Arvind Limited is a leading player in India’s textile and apparel market. It owns several private labels and licenses for international brands in India.
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