Aarvee Denims and Exports has been locked in 10% upper circuit at Rs 72.60 after reporting almost five-fold surge in net profit at Rs 17.29 crore for the second quarter ended September 2012 on back of higher sales and lower raw material cost. The textiles company had a profit of Rs 3.75 crore in the year ago quarter.
The company’s net sales grew by 26% on year-on-year at Rs 206 crore, while cost of raw materials declined by around 3% at Rs 110 crore during the recently concluded quarter.
Meanwhile, according to the Business Standard reports, cut in denim production by China and the US has propelled export order books by 15-20% for Indian players.
“Aarvee Denims and Exports, which exports 25-27% of its total denim produce, is also witnessing about 10-12% growth in export orders,” added report.
The stock has outperformed the market by gaining 80% in past three weeks as compared to 1.5% rise in BSE-500 index.
A combined 131,058 shares have already changed hands on the counter so far and there are pending buy orders for 26,228 shares on the BSE and NSE.
