Arvind Mills standalone Q3 net profit was up at Rs 31 crore versus the Rs 12 crore it reported in the same period last year. Its net sales were at Rs 633.9 crore compared to Rs 543.9 crore.
In an interview with CNBC-TV18, Sanjay Lalbhai, CMD, Arvind gave his perspective on the quarter gone by and the road ahead. Below is a verbatim transcript. Also watch the accompanying video. Q: Your EBIT level performance is quite encouraging. Can you take us through where most of the gains came from - from textiles or from the branded garment segment at the profitability level? A: Both, if I give you consolidated numbers, our topline is Rs 1404 crore compared to Rs 825 crore in the previous year. Our EBITDA growth is 30% which is up to Rs 128 crore, up from Rs 98 crore and our PAT is up by 611% which is up from Rs 7 crore to Rs 48 crore. Most of the gains are coming from denim, shirting and suiting business and the brand and retail business. So the improvement in EBITDA is coming through three businesses. Q: Could you also tell us geography wise how export revenue has done and what kind of a growth are you expecting to see in terms of export, what can you maintain? A: We have grown in denim by 39% compared to the previous year and our export is also growing by 40%. In this volume growth is around 15% and the rest is because of the price increases. Our shirting business has grown by 22% compared to last year and again the volume growth is around 15% and the rest is because of the price increases. In brands and retail, our business has grown by 54% and we believe that this kind of growth is sustainable. Q: How much have you achieved in the first 9 months of the year in terms of revenues and EBITDA because you had given some guidance of close to Rs 4000 crore topline and EBITDA line guidance as well for FY11? A: I think we are on our way to Rs 4000 crore. We are around Rs 2900 crore and we should be getting around Rs 1100 crore in Q4, so we are on track to go up to Rs 4000 crore and our net is above Rs 108 crore as of now in 9 months which is much above our forecast. Q: So in terms of the operating profit margins as well what do you think you could maintain for the fiscal? Going forward, is the 13% target maintainable? A: We have improved our margins by a percentage. So we are up to 14% on a consolidated basis. Q: You have done Rs 108 crore in nine months. So it is likely that you should end the year with something in the vicinity of Rs 160 crore? A: Yes, something around that. Q: Could you tell us about your monetization plan because there was this expectations of about Rs 100 crore in FY11 and another Rs 200-250 crore in FY12. What is the status update on that? A: We are well on the way to achieving that target and Rs 75 crore have already come in. Our Joint Venture with Safal is getting launched shortly in the next week or so. I think the developmental revenues will also start coming. We are launching around 4 real estate schemes for the next year. One is our one-third portion which is not launched in our Rohit Mills is going to be launched by Arvind alone. One commercial property is getting launched. Very soon we will be announcing a township to be launched in the next year and one commercial building in Bangalore is getting launched. So we are well on our way to realizing something like Rs 200-300 crore of cash flows coming from real estate both by divesting land to a JV company or an SPV plus developmental profits. Q: How is FY12 shaping up, now that you have turned around your operations effectively in FY11Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
