Textile major Arvind's profit in July-September quarter is seen falling 7 percent year-on-year to Rs 86.3 crore due to higher depreciation & finance costs and lower other income, according to average of estimates of analysts polled by CNBC-TV18. Earnings will be announced on November 5.
Revenue may climb 8.1 percent to Rs 2,124.4 crore during the quarter compared to Rs 1,964.6 crore in same period last year, majorly supported by brands & retail business.
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.
Textile segment (which contributes 70 percent to Topline) revenue growth may be modest around 3-5 percent due to lower cotton prices.
Operating profit is seen rising 10.5 percent year-on-year to Rs 267.5 crore and margin may expand 30 basis points to 12.6 percent, aided by lower raw material cost.
Key factors to watch out for would be performance of GAP stores and power brands (Arrow, Tommy, US Polo & Flying Machine - 80 percent of brand revenue), updates on plans for Aeropostale & Sephora and management guidance.
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