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May 10, 2012, 12.57 PM IST
Sanjay Lalbhai, CMD of Arvind says the company managed a 15% growth for its textile business in FY12. "Our topline grew by 6% in the fourth quarter of last fiscal year," he said in a press conference.
The company's revenue in FY12 stood at Rs 4,925 crore as against Rs 4,085 crore in last fiscal. Profit after tax (PAT) grew by 48% to Rs 245 crore from Rs 165 crore in FY11.
The domestic market accounts for 67% of the revenue and the rest comes from exports, the company said. Arvind's revenue from exports has come down in the last few year from as high as 60%, while it has grown in the domestic market through expansion of brand and retail business network.
Lalbhai says the margin in textile and brand business is under pressure. "The margin decline due to high cost inventory," he explains.
The revenue from brands and retail business showed a growth of 44% at Rs 1,172 crore in FY12 against Rs 813 crore in the previous fiscal. The count of company-run stores has risen from 428 in 2010-11 to 568 in 2011-12, including the Mega Mart format outlets.
Lalbhai expects margins to be restored in first quarter of FY13. "We are predominantly investing in brands, retail, and technical textiles. Our total outlay for this year (FY13) shall be around Rs 300 crore," he informs.
With focus on domestic market, the Mumbai-based textile firm earlier told PTI that it aims to be a Rs 8,000-crore revenue company by 2015. Through the stores, Arvind sells premium foreign brands like Arrow, US Polo amongst others. "Our target is to be a Rs 8,000-crore plus revenue company by 2015," Shah said told PTI.
Also watch the accompanying presser video.
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