Arvind back in black with Rs 20 cr Q1 profit

The country's largest denim manufacturer Arvind today reported a profit of Rs 20 crore for the quarter ended June as against a loss of Rs 3 crore in the corresponding period a year ago.

The growth has been driven by both branded apparel and retail business segment, which has registered a 66 per cent growth in revenue terms and 103 per cent growth in operating profits.

The company has proposed to enhance it's manufacturing capacity in both denim and woven fabric segments by 16 million metres with an investment of Rs 100 crore.

"In order to achieve growth both in denim and woven fabric segments the company is expanding it's manufacturing capacity by 16 million metres, with an investment of Rs 100 crore," Arvind Chief Financial Officer Jayesh Shah said.

"The increased capacities are expected to become operational from the third quarter of FY11," Shah said.

The company's net profit stood at Rs 19 crore for the quarter ended June as against Rs 9 crore in the corresponding period a year ago, showing a growth of 108 per cent.

It's consolidated revenue increased by 11 per cent in the first quarter of FY11 at Rs 865 crore from Rs 781 crore in the corresponding period a year ago.