Arvind reports net profit rise of 4.13 percent in Q2

In its unaudited standalone financial results for the second quarter ending September 30, 2014, leading textile major, Arvind registered a 4.13 percent year-on-year rise in net profits. The company’s standalone net profits grew to Rs 97.14 crores during the quarter under review from Rs 93.28 crores in the corresponding quarter of 2013-14.

Standalone net sales in the reporting quarter marginally increased by 2.14 percent to Rs 1,264.46 crores from Rs 1,237.87 crores from a year ago quarter. Of this, the textile segment reported revenue of Rs 1,224.62 crores, up 5 percent from Rs 1,166.39 crores, while brand and retail segment turnover soared 54 percent from a year earlier quarter to Rs 22 crores.

Profit from operations before other income, financial cost and exceptional items at Arvind, expanded 4.33 percent year-on-year to Rs 164.47 crores in the second quarter of fiscal 2014-15. The share price of Arvind recently touched all-time high owing to generally positive market sentiment as well as the announcements of tie-ups with popular North American names such as US retailer Gap, known for its jeans and T-shirts, and specialty retailer The Children’s Place.

It may be noted that Standard Chartered Equity Research in a note dated August 26, had said Arvind’s brands business will deliver 24 percent revenue growth over 2014-17 with over 4 percentage points improvement in operating margins, helped by newer brands such as Calvin Klein, Gap and The Children’s Place scaling up in size and better margins from existing brands such as Flying Machine, US Polo and Tommy Hilfiger.