Arvind slips 6% on poor Q2 nos; approves demerger of branded apparel business

Shares of Arvind fell more than 6 percent intraday Wednesday on the back of poor September quarter numbers (Q2FY18).

The company has reported 15.9 percent decline in its Q2 net profit at Rs 64.5 crore against Rs 76.6 crore, in the same quarter last fiscal.

The operating profit (EBITDA) was down 8.6 percent at Rs 212.3 crore and EBITDA margin fell 190 bps at 8.1 percent.

Meanwhile, revenue rose 12.8 percent at Rs 2,628.5 crore versus Rs 2,331.1 crore.

The company board has approved demerger of branded apparel business to Arvind Fashions and demerger of engineering division to Anveshan.

Arvind Anveshan and Arvind Fashions will be listed on NSE & BSE. There will be no cash to be paid by Arvind Fashions or Anveshan to the company or shareholders.

Arvind shareholders will get 1 share of Arvind Fashions for every 5 shares hold in Arvind and will get 1 share of Anveshan for 27 held in Arvind.

At 12:26 hrs Arvind was quoting at Rs 433.90, down Rs 21.05, or 4.63 percent on the BSE.

Posted by Rakesh Patil