Arvind Ltd Q1 revenues, profit drop after strike

Paralysed by a near one-month-long unrest during June, Ahmedabad-headquartered vertically-integrated textile company Arvind Limited on Thursday reported 4% drop in its revenues in Q1 2012-13 compared to same period last fiscal.

The company said it earned revenue of Rs 1,157 crores and net profit after tax of Rs 32 crores for Q1 2012-13, against revenue of Rs 1211 crore and net profit after tax of Rs 61 crores for Q1 2011-12.

At the operating level, consolidated EBIDTA for the Quarter stood at Rs 129 crores. The financial performance for the first quarter is not comparable with that of same quarter last fiscal owing to the company’s operations getting affected in June due to the unrest, the company said in a statement.

Arvind said despite reduction in selling prices by 10%-14% in various textile products, caused by fall in cotton prices, revenue for Q1 was strong on account of robust growth in textile volumes and 9 % increase in revenue of brand & retail business.

Jayesh Shah, Director and Chief Financial Officer added: “We had an abnormal situation due to the strike in two of our plants and hence it will be not appropriate to compare these results with that of 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.”