Arvind Mills net up by 89%

BS 200 SCPRECARD

The Ahmedabad-based denim major Arvind Mills Limited, a member of the Lalbhai Group and one of the largest integrated textile manufacturers in the world, has reported a 89 per cent rise in net profit for the third quarter ended December 2004 to Rs 36 crore against Rs 19 crore during the same period of the last financial year.

Sales rose by 19 percent at Rs 414 crore compared with Rs 349 crore for the quarter and company officials have attributed it to the increased demand of denim from the global market.

Denim volumes in the quarter under consideration stands at 24.49 million metres as compared with 18.73 million metres in corresponding period in last year and Chief financial officer Jayesh Shah said the outlook for denim is very positive and the company has been operating at full capacity.

"The company's new denim garment capacities will be fully functional from April, 2005 to cater to the growing demand and provide a further boost to the company's strategic thrust in garmenting and Arvind will further improve its operating performance in view of reduction in cotton prices by about 30 percent. Arvind Mills have already switched over to gas as a fuel instead of naptha for its captive power plants which itself is a profit-making proposition," commented Shah, also a director on the board.