Ahmedabad, July 29, – Arvind Limited, a leading Indian clothing retailer, has reported a decline of 40% in its profit after tax (PAT) in Q1 FY 25 to Rs 39 crore from a profit of Rs 65 crore in the same quarter of last financial year.
The Ahmedabad-based textile major’s overall revenue from the operations for the first quarter stood at Rs 1,831 crore compared to a revenue of Rs 1,853 crore in Q1 FY 24, a marginal decline of one percent. Arvind Limited sells brands like Tommy Hilfiger, Calvin Klein and Arrow.
According to a company release, the workers’ protest resulted in an approximate impact of Rs 200 Cr on revenue and Rs 60 crore on EBITDA, including about Rs 11 crore in increased costs such as air freight and additional worker costs incurred to mitigate the strike’s effects.
The textile division revenue for the quarter stood at Rs 1,350 crore with an EBITDA of Rs 99 crore, while the advanced material division reported a revenue of Rs 329 crore.
Domestic demand for woven and denim has shown some growth while the exports came down slightly. The domestic demand for wovens stood at 10.6 million meters against the demand of 10.4 million meters in Q1 FY 24, while the demand for denim was at 5.7 million meters against the demand of 5.3 million meters for the same period.
On the other hand the exporting demand for wovens and denim stood at 16.4 million meters and 6.4 million meters against the export demand of 18.2 million meters and 7.2 million meters in the first quarter of the previous financial year. Furthermore, the volume of garments grew by around 25% to 9.3 million pieces in this quarter compared to a volume of 7.3 million pieces in the same quarter last year.
Showing the impacts of the results for the quarter, the share prices of Arvind Limited saw a downfall of around 2.99% (Rs 11.55) and was being traded at Rs 374.75 per share.
