scorecardresearch
Monday, October 28, 2024
Support Our Journalism
HomeIndiaIndian apparel retailer Arvind's Q2 pre-tax profit jumps on strong demand; shares...

Indian apparel retailer Arvind’s Q2 pre-tax profit jumps on strong demand; shares rise

Follow Us :
Text Size:

(Reuters) – Indian clothing retailer Arvind posted a 19% rise in second-quarter pre-tax profit on Monday, aided by strong textiles demand as customers splurged on clothes ahead of the festive season, sending its shares 5% higher.

The company, which sells international brands such as Tommy Hilfiger, Arrow and Calvin Klein, said its consolidated profit before tax rose to 1.35 billion rupees ($16.1 million), from 1.14 billion rupees a year earlier.

Demand for textiles remained strong during the festive season, as wealthy domestic consumers spent more, analysts noted.

The company said volume growth in its mainstay textile segment was mainly due to new customer acquisition and better demand.

Arvind posted a near 14% rise in revenue from operations, while revenue from its core textile segment, which accounts for nearly 74% of total sales, grew 12%.

The advanced materials segment (AMD), through which Arvind makes fabrics and protective gear for construction work, grew 9%.

Textile division has a buoyant order book, and is expected to do well in the second half of the financial year, Arvind said in its investor presentation, adding that AMD is expected to do well and touch a volume growth of 20%.

Its total expenses rose 13% to 20.66 billion rupees, which led earnings before interest, tax, depreciation and amortization (EBITDA) margin to contract to 10.1% from 10.7% a year ago.

The company reported an increase in deferred tax provision worth 293.5 million rupees during the quarter.

Last week, rival Shoppers Stop reported a loss for a second straight quarter, as high inflation led customers to cut back on discretionary spending.

($1 = 84.0725 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Rashmi Aich)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular