Arvind’s net profit up by 409.76%

Unlike many other textile industry players, Arvind has registered an increase in its net profit

to Rs 2,429.5 million for the quarter ended December 31, 2011 as compared to Rs 476.6 million for the quarter ended December 31, 2010, representing an increase of 409.76 per cent. The total income was at Rs 11,902.1 million for the quarter ended December 31, 2011 whereas the same was at Rs 10,035.9 million for the same quarter last year, representing an increase of 18.60 per cent. The company has reported an EPS of Rs 9.54 for the quarter end compared to Rs 1.87 for the quarter ended December 31, 2010.

Its net profit of Rs 3691.9 million for the 9 months period ended December 31, 2011 compared to Rs 1081.1 million for the nine months period ended December 31, 2010, represents an increase of 241.49 per cent. Total income was at Rs 36,538.5 million for the 9 months period ended December 31, 2011 whereas the same was at Rs 28,883.6 million for the nine months period ended same quarter last year showcasing an increase of 26.50 per cent.

To sustain the negative impact of slowdown on the exports front, Arvind has decided to focus on increasing its domestic share by experimenting with various retail formats that would boost their revenues. The company plans to add 20 new formats by the end of the year and 90 of such stores will be added by next year and a total of 240 such stores will be set up by the end of 2014 with a revenue target of about Rs 400 crores from this format.

The new format store consists of both - bespoke as well as ‘Made to Measure’ clothing. Apart from its own brands, Arvind has licensing pacts with international brands like Arrow, Izod, GANT, US Polo and Energie. It also has JVs with VF Corporation with brands like Lee and Wrangler, and with the Murjani Group for Tommy Hilfiger to distribute and retail these brands in India.