Arvind Net Profit Up 12.38% To Rs 127crore
Arvind Mills, which ranks among the worlds top three denim producers, has posted a 12.38 per cent rise in its net profit despite a 51 per cent fall in other income, three-fold rise in extra-ordinary charges and a Rs 5 crore MAT payout.
The companys net profit has gone up to Rs 127 crore for fiscal 1996-97 while its turnover has risen 21 per cent to Rs 863 crore. Operating profit, net of other income, has improved 81 per cent to Rs 186 crore.
Dividend has been maintained at Rs 4.5 per share while earnings per share (EPS) has gone up marginally to Rs 12.7 from Rs 11.4. Other income rose by Rs 11 crore in the second half.
The company performed better in the second half, notching up a Rs 68.9 crore net profit, up Rs 10.9 crore from Rs 58 crore in the first six months. While its turnover jumped by Rs 472.3 crore from Rs 390.79 crore in the first half, exports touched Rs 405 crore for the full year from Rs 68 crore in the first half.
Arvind also announced the merger of group company Arvind Intex with itself. Arvind Intex, a turnaround case, makes cotton yarn and meets 40 per cent of Arvind Mills requirements. The merger will lead to better synergies, the company said in a statement yesterday.
Managing director Sanjay Lalbhai said Arvinds gross margins have improved under the influence of several strategic and operating initiatives like brand-building, a better product-mix and control on operating costs. A fall in cotton prices also contributed to the improvement. Arvind is one of the countrys largest cotton buyers. The companys operating margins improved to 21.55 per cent from 14.5 per cent.
Arvind Mills is investing Rs 1,000 crore in new capacities in shirting, knit-fabrics and captive power plants.