Arvind's Q2 profit rises 18% to Rs 730 mn, revenue up 12% to Rs 30.53 bn

Arvind Ltd stated that while it expected a growth of 10% for the current financial year for its existing businesses, the demerging branded apparel business is expected to grow at 20%

Textile conglomerate Arvind Ltd saw its profit after tax (PAT) after exceptional items grow by 18 per cent for the second quarter ended September 30, 2018, for the financial year 2018-19. The PAT after exceptional items stood at Rs 730 million for Q2 of FY'19 as against Rs 620 million for Q2 for FY'18.      

In view of NCLT having approved the scheme of demerger for the flagship company's branded apparels and engineering businesses, the reported financial statements by Arvind Ltd reflected figures for continuing businesses only.

Financial figures, without giving the effect of the demerger, saw Arvind Ltd's revenue from operations grow by 12 per cent to Rs 30.53 billion in Q2 FY'19, as compared to Rs 27.35 billion for Q2 FY'18.     

For Arvind Ltd, the overall revenue growth of 12 per cent in Q2 came on the back of 15 per cent growth in garments revenue and 21 per cent in the advanced materials division's revenue. On the other hand, revenue for the demerging branded apparel business stood at Rs 12.27 billion, posting a growth of 13 per cent, after adjusting for the IndAS changes.    

In an official communique, Arvind Ltd stated that while it expected a growth of 10 per cent for the current financial year for its existing businesses, the demerging branded apparel business is expected to grow at 20 per cent.  

"As stated earlier, NCLT has approved demerger of Branded Apparel and Engineering businesses into separate companies. The effective date of demerger and record date for allotment of shares is likely to be end of November," the company further stated.