Arvind Q2 net profit up 38%, raises FY14 revenue guidance

Moneycontrol Bureau

Textile major Arvind reported good performance during second quarter (July-September) with the profit after tax growing a whopping 38 percent year-on-year to Rs 89.6 crore.

"Buoyed by the all round volume growth as well as price gains across all business segments, the company has achieved very strong financial numbers," Jayesh Shah, CFO said.

The company revised its FY14 revenue guidance to 24 percent from 20 percent earlier. The company needs a growth of around 20 percent in October-March period of FY14 to meet its 24 percent revenue guidance. Its sales growth for April-September period was 29.3 percent at Rs 3,208.76 crore.

Total income of the company increased 30 percent to Rs 1,718 crore in three months period ended September 2013 from Rs 1,324.6 crore in a year ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 41.3 percent Y-o-Y to Rs 232.8 crore and EBITDA margin grew 112 basis points to 13.55 percent during September quarter.

Textiles business jumped 23 percent year-on-year to Rs 1,170.5 crore led by volume growth of 21 percent in woven fabrics and 46 percent in garment manufacturing.

Brand and retail business registered growth of 44.8 percent at Rs 501.5 crore amid challenging market scenario.

Finance cost jumped 15 percent year-on-year to Rs 90.5 crore in the quarter gone by.

At 13:50 hours IST, the stock was trading at Rs 100.95, down 2.04 percent. It may be down on profit booking as it had rallied 30 percent in October so far.