Arvind's Q1 profit drops

Records profit of Rs 32 crore this year as compared to Rs 61 crore last year.

Arvind has recorded revenue worth Rs 1,157 crore and net profit after tax of Rs 32 crore for the first quarter ended on June 30, 2012 as against revenue of Rs 1,211 crore and net profit after tax of Rs 61 crore for the same period last year. At the operating level, consolidated EBIDTA for the quarter stood at Rs 129 crore.

Despite reduction in selling prices by 10-14 per cent in various textile products, caused by fall in cotton prices, revenue for Q1 was strong on account of robust growth in textile volumes and nine per cent revenue increase in brand and retail business. 

Commenting on the results, Jayesh Shah, Director and Chief Financial Officer, Arvind, said,“We had an abnormal situation due to the strike in two of our plants and hence it will not be appropriate to compare these results with that of the previous year. Our textile business is witnessing strong growth and we are confident that in coming quarter there will be growth in volume as well as margins.”