Arvind Mills Limited one of the largest integrated textile players in the world have announced their financial results for Quarter ended 30th June, 2007.
The sales for the Quarter is up by 21% at Rs.510 Crores as against Rs.421 Crores in the corresponding quarter last financial year. Profit before tax was up by 21% at Rs.6 Crores compared to Rs.5 Crores in the corresponding quarter previous financial year. Profit after tax at Rs.6 Crores is up by 26% compared to Rs.5 Crores in the corresponding quarter previous financial year.
The performance of the company even though much better on operational terms was impacted by appreciating Rupee. Even though some amount of margin erosion was recovered by the enhanced drawback rates the overall impact was significant.
The company's effort to focus on better paying markets is bearing fruit and the denim realisations have improved for second consecutive quarter.
The company is continuing to expand its branded apparel and retail business. The revenue from brands and Megamart chain without accounting for sales from VF Corporation's licensed brands which are now in a joint venture grew by 26%. The company had total 154 Exclusive Brand Outlets at end of the current quarter.
Commenting on the results, Mr. Jayesh Shah, Chief Financial Officer and Director said : “The performance of the company has seen continuous improvements but are affected by macro-economic factors like exchange rate and rising interest costs. The company will continue to focus on its core strengths and try to negate the macro factors with better operational performance”.
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