BENGALURU (Reuters) – Indian retailer Arvind Fashions swung to quarterly profit on Thursday, helped by strong demand for its premium products.
The company, which sells clothing from brands such as Arrow, Calvin Klein and Tommy Hilfiger, reported a consolidated net profit of 13.2 million rupees ($157,621.35) against a loss of 164.3 million rupees a year ago.
Its revenue from operations rose 10.2% to 9.55 billion rupees.
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KEY CONTEXT
Indian retailers have been offering heavy discounts to sway customers amid heightened competition. Premium products, aimed at high-income consumers, have remained a key driver of sales growth.
For Arvind Fashions, sales of premium products and doubling of womenswear business were the major growth drivers in the June quarter.
Last month, Shoppers Stop reported a dip in its quarterly profit.
PEER COMPARISON
Valuation Estimates (next Analysts’ sentiment
(next 12 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean No of Stock to Div
TDA growth growth rating analysts price yield
(%) (%) * target** (%)
Arvind 44.45 11.97 12.71 50.91 Strong 5 0.89 0.25
Fashions Ltd Buy
Shoppers Stop 83.76 20.57 16.87 30.58 Hold 6 0.95 –
Ltd
Trent Ltd 120.93 69.78 35.59 52.91 Buy 12 1.35 0.06
Aditya Birla – 21.08 15.47 – Sell 17 1.26 –
Fashion and
Retail Ltd
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 83.7450 Indian rupees
(Reporting by Ashish Chandra in Bengaluru; Editing by Mrigank Dhaniwala)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.