Textile company Arvind's consolidated profit is likely to increase 5 percent year-on-year to Rs 115 crore and revenue may rise 8 percent to Rs 2,240.15 crore, according to average of estimates of analysts polled by CNBC-TV18. Higher tax expense & depreciation cost may impact bottomline. Earnings will be announced on February 4.
Analysts feel higher growth of 10-15 percent in brands business may be led by power brands (like US Polo, Arrow, Tommy Hilfiger & Flying Machine which all contribute around 70-80 percent to brands revenue).
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.
About 4-5 percent growth in textile business is likely to be led by growth in garments division.
Operating profit (earnings before interest, tax, depreciation and amortisation) is seen rising 6.3 percent year-on-year to Rs 306.4 crore but margin may contract 20 basis points to 13.7 percent in Q3. Margin may be aided by lower cotton prices.
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