Latest News | Arvind Ltd Q1 Profit Dips 37.25 Pc to Rs 43.73 Cr, Revenue Falls 1.2 Pc to Rs 1,830.6 Cr
Get latest articles and stories on Latest News at LatestLY. Leading textile manufacturer Arvind Ltd on Monday reported a 37.25 per cent decline in consolidated net profit at Rs 43.73 crore for the first quarter ended June 30, 2024, on account of workers' strike and general elections.
New Delhi, Jul 29 (PTI) Leading textile manufacturer Arvind Ltd on Monday reported a 37.25 per cent decline in consolidated net profit at Rs 43.73 crore for the first quarter ended June 30, 2024, on account of workers' strike and general elections.
The company had posted a net profit of Rs 69.70 crore in the April-June quarter a year ago, Arvind Ltd said in a regulatory filing.
Arvind Ltd said its revenue from operations declined 1.22 per cent at Rs 1,830.60 crore during the April-June quarter. It was at Rs 1,853.27 crore in the corresponding period of the previous fiscal.
"The financial performance and growth of Arvind Limited in Q1 of FY25 were impacted by two unrelated events: the National general election and an illegal worker's unrest," said Arvind in its earnings statement.
The unrest impaired the performance at the Santej factory, its largest textile facility, for 21 days.
The strike affected the company's main businesses, including the woven segment, denim segment, and the industrial and human protection parts of the Advanced Materials Division (AMD) segment.
"This resulted in capacity loss and challenges in executing existing orders," Arvind said, adding "the strike had an approximate impact of Rs 200 crore on revenue and Rs 60 crore on EBITDA, including about Rs 11 crore in increased costs such as air freight and additional worker costs incurred to mitigate the strike's effects."
Arvind's total expenses in the June quarter rose marginally to Rs 1,789.60 crore.
In the April-June period, the company's revenue from textiles segment stood at Rs 1,350.02 crore and from advance material segment it was at Rs 328.79 crore.
A "double-digit growth of 25 per cent in volume was achieved by the garmenting division. New customer addition and expansion into new categories in the knit garment were also seen in the segment, which is a result of our verticalisation strategy," it added.
While advance material division experienced partial impacts from the strike.
Arvind's total income in the June quarter was down 1.15 per cent to Rs 1,843.52 crore.
Shares of Arvind Ltd on Monday settled at Rs 374.10 on BSE, down 3.26 per cent from the previous close.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)