Arvind net profit dips 82% at Rs 2 crore

Arvind, earlier called Arvind Mills, posted a decline of 81.82 per cent in its net profit at Rs 2 crore for the quarter ended September, compared with Rs 11 crore in the corresponding previous quarter. Its net sales during the period stood at Rs 599 crore against Rs 564 crore last year, up 6.21 per cent.

Higher energy costs, interest rates, market losses on account of depreciating rupee against the dollar along with high cotton prices hit the company’s profits during the quarter.

Jayesh Shah, chief financial officer, Arvind, said, “The company is faced with a unique business landscape where in spite of better business performance, the input cost and foreign exchange loss have resulted in substantially lower profits.”

 

The company’s sales of branded apparel and retail business grew by 29 per cent. Arvind has a value apparel retail format under the MegaMart brand, which has over 100 outlets in the country. “The brand and retail business continue to grow and we are confident of maintaining the growth,” added Shah.