Q1 results: The good news continues for India Inc
By FashionUnited
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Interestingly, Gokoldas Exports is one of the few Indian companies to have reported a loss this quarter. The spate of Q1 results that have been declared in the past few weeks has unfolded a positive story for most domestic textile companies and apparel retailers.
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Bombay Rayon Fashions posted a net profit of Rs 52.17 crores for the quarter ended June 30, up 40 per cent from the same period last year. Their net sales increased by 49.47 per cent to Rs 50.27 crores from Rs 33.63 crores in the corresponding quarter last year. The other company to record positive growth is Arvind, the country's largest denim manufacturer. It reported a profit of Rs 20 crores for the quarter ended June as against a loss of Rs 3 crores in the corresponding period a year ago. The growth has been driven by both branded apparel and retail business segment, which has registered a 66 per cent growth in revenue terms and 103 per cent growth in operating profits.
Kewal Kiran Clothing makers of Killer jeans and well-known for their K-Lounge retail chain has reported a sales turnover of Rs 45.41 crores and a net profit of Rs 8.85 crore for the quarter ended June 2010. Growth is 35 per cent higher than the last year. CMD Kewal Jain says their revenue is coming through MBOs, K-Lounge, exports and departmental stores. The retail business is generating 32 per cent of the total net revenues through retail and overall revenues through four channels.
As for Gokaldas’s not so positive results, Managing Director Rajendra Hinduja, explains it by saying the apparel export industry is still not out of the woods due to high raw material prices and wage increases. Moreover, while the order position has improved, pricing pressures remain. What’s more the sluggish EU markets, forex situation and high cotton prices also remain worries. However, he is more positive about the Q2 and Q3 figures. Perhaps what makes him and other apparel exporters positive is the Chinese currency appreciation, wage hike in Bangladesh, and withdrawal of GSP concessions to Sri Lanka.
Arvind
Gokaldas Exports
Indian Rayon
Raymond