Arvind Q3 profit up 7% at Rs 109 cr, operating margin slips

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26 Aug, 2025 12:21

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Arvind's third quarter profit increased 7 percent year-on-year to Rs 109.1 crore led by textile and real estate business. However, finance cost dented the profitability.

Numbers were slightly ahead of expectations as profit was expected at Rs 107.5 crore on revenue of Rs 2,017 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Total income grew 17 percent to Rs 2,074 crore during October-December quarter from Rs 1,774 crore in same quarter last fiscal, driven by strong growth in brands & retail and textile businesses.

Jayesh Shah, director & chief financial officer expects revenue growth of 14-15 percent for FY15. "We hope to maintain operating margin at current level," he says.

Textiles business clocked 9.7 percent growth at Rs 1,290.7 crore with earnings before interest and tax rising 15.5 percent while brand and retail business grew 21 percent Y-o-Y to Rs 658.7 crore with EBIT falling at Rs 27.20 crore (against Rs 27.6 crore). Real estate registered a strong 170 percent growth in revenue at Rs 37 crore with significant growth in EBIT at Rs 7 crore (against Rs 0.12 crore in Q3FY14).

Operating profit climbed 13 percent year-on-year to Rs 288 crore but margin declined 40 basis points to 13.9 percent during the quarter. Analysts had estimated operating profit at Rs 275 crore and margin at 13.6 percent for the quarter.

Total expenses went up 16.5 percent on yearly basis to Rs 1,841.3 crore and finance cost jumped 26.8 percent to Rs 101.8 crore in the quarter gone by.

At 13:59 hours IST, the scrip of Arvind was quoting at Rs 299, up Rs 6.95, or 2.38 percent on the BSE.

Posted by Sunil Shankar Matkar