Mumbai, Oct 29: Arvind Mills Ltd, flagship of the Lalbhai group, has reported a sharp drop in net profit to Rs 15.28 crore for the first half of the current fiscal, against Rs 60.28 crore in the same period last year.A steep 20 per cent increase in the cotton prices squeezed the operating margins which dropped to 11.9 per cent from 20 per cent in the same period last year, a company release said.
Sales, however, rose 9 per cent to Rs 464.20 crore from Rs 424.78 crore. Exports also grew 12 per cent to Rs 201.59 crore.
Arvind Mills chief finance officer Jayesh Shah said: "Denim sales has registered a 28 per cent volume growth to 39.7 million metres from 30.9 million metres. However, margins have been eroded due to strain on prices."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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