Arvind posts net profit of Rs 53.34 cr for March quarter

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Updated: May 26, 2021 4:30 PM

Leading textile manufacturer Arvind Ltd on Wednesday reported a consolidated net profit of Rs 53.34 crore for the fourth quarter ended March 2021.

“Since past fortnight, traders have been getting orders of grey fabric, especially denim, from exporters based in Mumbai and Noida. If the government would allow them to work for longer hours, traders can fulfill orders in time by following all the Covid-related protocols issued by the authority,” he added.“Since past fortnight, traders have been getting orders of grey fabric, especially denim, from exporters based in Mumbai and Noida. If the government would allow them to work for longer hours, traders can fulfill orders in time by following all the Covid-related protocols issued by the authority,” he added.

Leading textile manufacturer Arvind Ltd on Wednesday reported a consolidated net profit of Rs 53.34 crore for the fourth quarter ended March 2021. The company had posted a net loss of Rs 17.32 crore during the January-March quarter of the previous financial year, Arvind said in a regulatory filing. Its revenue from operations stood at Rs 1,654.87 crore, marginally up as compared with Rs 1,641.56 crore in the year-ago period.

“Denim volumes recovered to 113 per cent of the previous year in the fourth quarter, while woven volumes recovered to 112 per cent,” said Arvind in a post-earnings statement. It, however, reported a drop in garment volumes, which stood at 92 per cent of the previous year’s Q4 numbers.

Besides, Ebitda margins in textiles improved to 12.6 per cent, compared with 9.3 per cent a year ago, despite a significant increase in all input costs including cotton, yarns, dyes, chemicals, packaging and transport, it added. Ebitda stands for earnings before interest, tax, depreciation and amortisation. Arvind’s total expenses stood at Rs 1,566.36 crore in the March 2021 quarter, down 2.91 per cent as against Rs 1,613.37 crore a year ago.

Its revenue from textiles was at Rs 1,331.16 crore, down 1.46 per cent as against Rs 1,350.85 crore a year ago. Advance material was up 11.33 per cent to Rs 198.65 crore, compared with Rs 178.43 crore a year ago. For the financial year ended on March 2021, Arvind reported a net loss of Rs 27.39 crore. It has a net profit of Rs 92.10 crore in the previous year. Its revenue from operations was down 31.2 per cent to Rs 5,072.98 crore in 2020-21. It was Rs 7,369 crore in 2019-20.

According to the Ahmedabad-based company, its “net borrowings reduced by Rs 132 crore for the quarter and Rs 421 crore over the course of the full financial year 2021”. Meanwhile, Arvind Ltd also informed that its board in a meeting held on Wednesday has “not recommended dividend on equity shares” for the year ended March 31, 2021.

The board has also approved a proposal to raise Rs 200 crore from market through a private placement basis by issuing non-convertible debentures (NCDs). The fund will be used for general corporate purposes, including capital expenditure, augmenting long-term working capital and re-finance of existing loans.

Shares of Arvind Ltd on Wednesday closed 1.68 per cent higher at Rs 78.50 on the BSE.

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