Arvind Q3 net profit at Rs 35.35 cr

Textile major Arvind Ltd on Friday reported a consolidated net profit of Rs 35.35 crore for the third quarter ended December.

The company had posted a net profit of Rs 40.43 crore in October-December quarter a year ago, it said in a BSE filing.

Its revenue from operations stood at Rs 1,868.80 crore during the quarter under review. It was at Rs 1,680.26 crore in the corresponding quarter of previous fiscal.

"EBIDTA margin in Textiles improved because of base effect, and lower input costs. Margins in Denim category saw some improvement from operating leverage," the company said in a post earning statement.

"Higher garmenting volumes resulted in margin improvement as well. AMD (advanced material) margins increased by over 3 percentage points to over 13 per cent as part of the portfolio matured," it added.

The results are not comparable with the previous year's period because of demerger of company's branded apparel business to Arvind Fashions Ltd with effect from November 30, 2018.

"To the extent current quarter and nine months ended December 31, 2019 are not comparable with the quarter and nine months ended December 31, 2018 and the year ended March 31, 2019," the company said.

The company's total expenses during October-December stood at Rs 1,819.41 crore.

Revenue from textile segment stood at Rs 1,557.87 crore and that from advanced material segment at Rs 184.56 crore.

"Garment revenues were up given 23 per cent higher garment volumes; AMD revenues were up 16 per cent as businesses have started to scale-up," it said.

On outlook, the company said, "As suggested earlier, expect revenue to grow by about 9-10 per cent and maintain EBITDA margin at around 10 per cent for the full year."