Leading textile manufacturer Arvind Ltd on Saturday reported a consolidated net loss of Rs 17.32 crore for the fourth quarter ended March 31, impacted by COVID-19 and the subsequent lockdown.
The company had posted a net profit of Rs 66.71 crore during January-March quarter of the previous fiscal, Arvind said in a regulatory filing.
Its revenue from operations was down 11.71 percent to Rs 1,641.56 crore during the quarter under review, as against Rs 1,859.39 crore in the corresponding period of the preceding fiscal.
“COVID-19 has substantially impacted the normal business operations of the group by way of interruption in production, supply chain disruption, unavailability of personnel, closure of production facility etc during the lockdown…” the company said.
Arvind's total expenses declined by 10.36 percent to Rs 1,613.37 crore in Q4 FY 2019-20, as against Rs 1,799.95 crore.
“Stoppage of production and logistics in the second half of March resulted in 42 percent drop for the month, causing an estimated revenue loss of Rs 250 crore, and corresponding EBITDA of Rs 75 crore,” said Arvind in a post earning statement.
Its revenue from textiles slipped 8.65 percent to Rs 1,350.85 crore, compared to Rs 1,478.87 crore in the corresponding period previous fiscal. While Advance Material was down 10.89 percent to Rs 178.43 crore as against Rs 200.24 of Q4 FY 2018-19.
For the fiscal 2019-20, Arvind's net profit was down 59.67 percent to Rs 92.10 crore. It was Rs 228.41 crore in the previous year.
However, its revenue from operations in the fiscal fell 3.17 percent to Rs 7,369 crore. It was Rs 7,142.18 crore in 2018-19.
“Full-year revenue was higher by 3 percent compared to the previous year, driven by growth in Garmenting and Advanced Materials,” said Arvind. According to the company, “Despite the severe setback, Net debt reduced by 248 crore during the year” and working capital sharply improved.
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