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We remain enthused about the company's branded apparel, advanced materials and engineering businesses given their revenue visibility and ability to perform consistently well
Verticalisation of the textile segment, promising prospects of the branded apparel segment and a healthy order book in the engineering segment reinforce our confidence in the stock.
Net Sales are expected to increase by 18.3 percent Y-o-Y (down 2.1 percent Q-o-Q) to Rs. 2,927.5 crore, according to ICICI Direct.
The company's aim is to achieve a sales growth of 10 percent from the textiles business, around a third of which it expects from the garments division.
The company's branded apparel segment is on course to deliver high growth, whereas the textile segment may witness margin pressure in the near-term.
Arvind's Q3 earnings were absolutely in-line as margins met expectations while the branded apparel business stands out with improvement in profitability and jump in EBIT.
Net Sales are expected to increase by 7.3 percent Y-o-Y (up 1.1 percent Q-o-Q) to Rs. 2502.4 crore, according to Edelweiss.
Net Sales are expected to increase by 10.8 percent Y-o-Y (up 4.3 percent Q-o-Q) to Rs. 2582 crore, according to ICICI Securities.
Arvind's Q1 earnings were largely in-line with estimates as inventory clearance leads to a revenue beat. Margins however decline as raw material costs rise 24 percent.
Net Sales are expected to decrease by 5.5 percent Q-o-Q (up 10.6 percent Y-o-Y) to Rs 2328.2 crore, according to ICICI. Arvind Ltd to report net profit at 69.3 crore down down 5.6% year-on-year.
Net Sales are expected to decrease by 7.6 percent Q-o-Q (up 8.2 percent Y-o-Y) to Rs 2277.6 crore, according to Edelweiss. Arvind to report net profit at 76.1 crore up 7.1% year-on-year.
In an interview with CNBC-TV18 Kulin Lalbhai, ED of Arvind said that the drop in EBITDA was on the back of trade channels that had liquidity crisis.
Textile company Arvind's profit on consolidated basis is expected to fall 20 percent year-on-year to Rs 84 crore as its brand and retail business is likely to be hit by demonetisation.
Speaking to CNBC-TV18, Sanjay Lalbhai, CMD of Arvind said that the company has few cash-generating businesses, which can be unlocked for value to shareholders. These can either be given to existing shareholders or crystalised or couild be put under separate boards.
Revenue is expected to increase by 9.1 percent Q-o-Q (up 9.5 percent Y-o-Y) to Rs 2296.4 crore, according to ICICI Securities.
Credit Suisse believes the Goods and Services Tax (GST) can be a risk going forward. "With no indirect taxation in textile segment and just 5 percent VAT on the branded apparel segment, either demand or margins could be impacted by GST," the report highlighted.
During the quarter, EBITDA may rise 6.8 percent at Rs 277.2 crore versus Rs 259.6 crore while margins may stand at 12.8 percent against 12.7 percent year-on-year.
Brands & retail business may also grow because the festive season shifted to Q3 in FY16. Performance of GAP stores may add to brands & retail numbers.
Brands & retail Segment (which contributes 30 percent to topline) may lead revenue growth and is expected to grow 15-17 percent. Full impact of GAP stores will be reflected in the quarter.
Operating profit (ex-forex) may grow 14 percent on yearly basis to Rs 250.5 crore and margin may see expansion of 30 basis points to 12.7 percent, led by slight improvement in the textiles segment due to low cotton prices.
Textile company Arvind's third quarter net profit may rise 5 percent year-on-year to Rs 107.5 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Speaking to CNBC-TV18‘s Latha Venkatesh and Sonia Shenoy, Sanjay Lalbhai, chairman and managing director, Arvind Mills says that the company will maintain its 20 percent growth and outperform its volume guidance of 14 percent.
According to Arvind's Sanjay Lalbhai, the huge growth in textile and clothing is responsible for improvement in the margins of the company for the quarter ended September.