Arvind Ltd Reports Decline in Q2 Net Profit

Arvind Ltd, a prominent textile manufacturer, has witnessed a 33.83 per cent decline in consolidated net profit for the second quarter ended September 30, 2023. Let’s delve into the details of the financial performance and outlook provided by Arvind Ltd.

Financial Performance Overview

The company reported a consolidated net profit of Rs 84.19 crore for the quarter, compared to Rs 127.25 crore during the same period last year. This decline in net profit is attributed to various factors, including lower revenues from operations and decreased total income.

Revenue and Expenses

Revenue from operations saw a significant downturn, registering an 11.43 per cent decrease at Rs 1,921.73 crore compared to Rs 2,169.81 crore in the corresponding period of the previous fiscal year. Total expenses during the quarter stood at Rs 1,821.72 crore, marking a 12.07 per cent reduction from the year-ago period.

Segment-wise Performance

Revenue from textiles and advanced materials (AMD) were recorded at Rs 1,455.32 crore and Rs 354.49 crore, respectively, for the September quarter. This segment-wise breakdown highlights the varying performance within Arvind Ltd’s business operations.

Outlook and Expectations

Despite the challenging financial results, Arvind Ltd remains optimistic about the future. The company expects a slight improvement in revenues and margins on a sequential basis. It anticipates gradual growth in garments volumes and foresees stable volume growth in AMD.

Market and Export Insights

Arvind acknowledges the impact of price deflation on revenue growth but remains positive about maintaining strong margins. The company notes the emergence of “green shoots” in export markets as inventory corrections conclude, indicating potential market recovery.

Industry Position and Stock Performance

As one of India’s largest textile companies and a key supply chain partner for leading fashion brands globally, Arvind Ltd continues to navigate market dynamics. On Tuesday, shares of Arvind Ltd were trading at Rs 198.45 on the Bombay Stock Exchange (BSE), marking an 11.46 per cent increase.

The financial performance and strategic outlook provided by Arvind Ltd reflect ongoing efforts to adapt and thrive in a dynamic business environment, emphasizing resilience and forward-looking strategies amid market challenges.