In the second quarter of fiscal 2019, Arvind Limited, one of the largest textiles, apparel and fashion players, has witnessed 15 per cent growth in revenue from garment division and 21 per cent growth in advanced materials division. EBIDTA improved at 24 per cent, partially driven by improvements in margins of advanced materials division.
The company’s branded apparel business reported revenue of Rs 1227 crore, a rise of 13 per cent and EBITDA climbed 20 per cent.
Recently, the National Company Law Tribunal (NCLT) has approved demerger of Branded Apparel and Engineering businesses into separate companies. The effective date of demerger and record date for allotment of shares is likely to be end of November.
The performance of Arvind continues to improve with growth and profitability of Power Brands validating the robustness of core business. Online sales went up 48 per cent in line with increasing e-commerce penetration in fashion retail. Innerwear business consisting of USPA, Hanes & CK rose 33 per cent during the quarter.
For fiscal 2019, the revenue of Arvind Limited (Demerged) is expected to be 10 per cent and from advanced materials division is likely to grow at 24 per cent. While, revenue from textiles is projected to improve by 5-6 per cent.