Volume, export growth help Arvind Ltd post Rs 71 crore Q2 PAT

Firm had posted a loss of nearly Rs 6 cr in the year-ago quarter

Volume growth across segments coupled with strong export and domestic demand post Covid has led to Arvind Ltd registering a profit after tax (PAT) of Rs 71.06 crore for the second quarter ended September 30, 2021. The company had posted a loss after tax of Rs 5.86 crore in the corresponding period last year.

Arvind's consolidated income for Q2 of FY 2021-22 grew by nearly 62 per cent to Rs 2,132.74 crore on a year-on-year (YoY) basis as against Rs 1,318.95 crore in Q2 of FY 2020-21.

Among its business segments, textiles grew by 68 per cent YoY for the second quarter to Rs 1711 crore on the back of a surge in volumes due to rebound in the domestic market and continued strong export demand. Advanced Materials Division (AMD) too delivered a robust quarter with revenues at Rs 297 crore.

Input costs continued to increase sharply, but were mostly offset by improved price realization and higher efficiencies. However, continuing increase in all input costs impacted percentage margins while higher readymade inventory positions added to working capital requirements. Logistics and shipping challenges continued to hamper movement to Bangladesh and other locations

Within the textiles segment, denim volumes returned to 25 million meters in Q2 after several quarters even as exports contributed to 59 per cent. On the other hand, wovens clocked a healthy 31 million meters as all segments continued to grow while garment volumes improved to roughly nine million pieces, up by six per cent YoY.

Meanwhile, in terms of price realisation, denim average realisation improved to Rs 214/meter up from Rs 202/mtr in Q1 of FY22 and Rs 190/mtr in Q2 last year. Woven average realization improved to Rs 176/meter, up from Rs 159/m in Q1 of the current fiscal.