Arvind Ltd on Tuesday reported its third quarter earnings for the financial year 2023-24 with profit at Rs 91.70 crore, up 9 per cent in comparison to Rs 84.12 crore during the third quarter of FY23. It posted revenue from operations at Rs 1,888.24 crore, down 4.6 per cent as against Rs 1,979.79 crore during the corresponding quarter of previous year. The company EBITDA stood at Rs 216 crore, up 16 per cent on-year.
“Arvind Ltd delivered a robust performance amid a continued challenging environment. Volumes clocked a healthy growth across most businesses, though deflated prices driven by lower input costs kept the revenue numbers muted. EBITDA margin of the overall business increased by 200 bps on a year on year basis to reach 11.4 per cent,” the company said in a statement.
Textile revenue, it added, stood at Rs 1426 crore with an EBITDA of Rs 168 crore translating into the EBITDA margin of 11.8 per cent, which is the highest in the past twelve quarters. Textile margin improved by 140 bps on a YoY basis on account of efficiency gains and softening of input costs.
Advanced materials division delivered revenue of Rs 345 crore with an EBITDA of Rs 52 crore for the quarter, translating into an EBITDA margin of 15.2 per cent. AMD margin improved by 150 bps on a YoY basis.
Basis order book and pipeline, Arvind Ltd said that the company expects Q4 FY24 to deliver better results across key parameters of volume/revenue growth, healthy margins and returns. “Capex program of Rs 300 crore primarily focused towards AMD and garmenting capacity expansion is on track. With resumed investments for growth, we expect our long term borrowing to close the year within Rs 400 crore mark,” it said.
Furthermore, based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors also approved the re-appointment of Arpit Patel as an Independent Director of the Company for a second term of five years with effect from 17th May, 2024. The company also approved the appointment of Nigam Shah as the Chief Financial Officer of the Company with effect from 1st February, 2024, in place of Jayesh Shah. Jayesh Shah, meanwhile, shall continue to be Whole Time Director of the Company & Group Chief Financial Officer. Arvind Ltd also approved the appointment of Krunal Bhatt as the Company Secretary of the Company with effect from 1st February, 2024, in place of RV Bhimani, who shall cease to be Company Secretary.