Ahmedabad, Jan 31: Arvind Mills Ltd, the flagship company of the Lalbhai Group, has posted a 52 per cent growth in sales during the third quarter ended December 31, 1999 to Rs 335.74 crore as compared to Rs 221.29 crore in the corresponding period previous financial year.However, it suffered a net loss of Rs 6.68 crore as against earning a profit of Rs 4.62 crore over the same periods.
The cumulative results for the last nine months ended December 31, 1999 also showed a loss of Rs 107.79 crore as against a profit of Rs 19.90 crore in the same period the previous year.
According to market sources here, the loss could have been higher but for a one-time extra-ordinary gain of Rs 86.14 crore on the sale of garment business.
The company has sold its branded garments division by spinning it off to a subsidiary company, Arvind Brands Ltd, with effect from December 31. The division comprised apparel brands, related assets and business liabilities and 100 per cent shareholding in the two subsidiaries - Arvind Clothing Ltd and Arvind Fashions Ltd.
Increased volumes in denim, shirting, knit and branded garments contributed to increased sales, the realisations on denim being flat during the period. The cotton costs for denim have been lower with the current soft cotton prices expected to continue in the next quarter too.
The sources attributed the shortfall in margin to the decline in denim realisation, increased power costs, doubling of naphtha prices - used as fuel for the captive power plant - owing to increase in world oil prices.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.