Arvind’s Q1 net up 176%

Textiles major Arvind has posted a 176 per cent growth in consolidated net profits for

the first quarter ended June 30, 2011, at Rs 61 crores as against Rs 22 crores in the corresponding period last year. The company attributed the growth in profits to a rise in revenues coupled with improvement in operating margins in textiles and brands and retail business. There was a revenue growth of 44 per cent in the branded apparel and retail business segments and 37 per cent revenue growth in textile business. EBIDTA increased by 47 per cent at Rs 175 crores as against Rs 119 crores for the corresponding quarter of the previous year. Commenting on the results, Arvind’s director and CFO Jayesh Shah said, "The growth across all the product segments is led by the growth in domestic market on the back of strong B2C business model which Arvind has created.”

Its revenues for the quarter rose by 39 per cent at Rs 1,200 crores against Rs 863 crores in the corresponding period of the previous year. Growth across all product segments is led by growth in the domestic market on the back of a strong B2C business model which Arvind has created. The brand is confident that with a fall in cotton prices, the demand for fabrics, which has been sluggish for the past few months, will increase. Arvind’s standalone revenues for the quarter jumped by 42 per cent at Rs 822 crores as against Rs 578 crores last year. It’s poised to achieve 15 to 20 per cent revenue growth during the current year and also to maintain operating margins.