Moneycontrol Bureau
Textile company Arvind's consolidated profit declined 2.5 percent year-on-year to Rs 91 crore due to higher tax and exceptional item. Revenue increased 6.7 percent to Rs 2,096.4 crore from Rs 1,964.6 crore in same period.
Earnings barring profit missed analysts' expectations. Profit was expected at Rs 86.3 crore and revenue of Rs 2,124.4 crore for the quarter with operating profit rising 10.5 percent and margin expansion of 30 basis points.
Textile and brands & retail businesses continued to support topline while operational performance was largely supported by brands & retail segment.
Operating profit increased 7.8 percent year-on-year to Rs 261 crore and margin expanded by 20 basis points to 12.5 percent during the quarter due to lower raw material cost that declined 10 percent.
During the quarter, textile business (which contributes more than 60 percent to total revenue) grew by 5.2 percent to Rs 1,295.85 crore with EBIT (earnings before interest and tax) up 6 percent and margin expansion of 14 basis points) compared to year-ago period.
Brand and retail segment (which contributes 33 percent to total revenue) has shown 9 percent year-on-year growth at Rs 702.86 crore with EBIT rising 50 percent and margin expansion of 99 basis points for the quarter.
The company has reported an exceptional item of Rs 3.77 crore, which was retrenchment compensation paid to workers retired under voluntary retirement scheme.
Tax expenses for the quarter were at Rs 40.56 crore, an increase of 67.8 percent compared to Rs 24.17 crore in same quarter last fiscal.
Other income increased marginally to Rs 31.97 crore from Rs 30.31 crore while finance cost declined to Rs 94.7 crore from Rs 101 crore during same period.
At 13:25 hours IST, the scrip of Arvind was quoting at Rs 279.15, up Rs 11.35, or 4.24 percent on the BSE.
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