India-based Textile conglomerate Arvind Ltd. has registered a consolidated profit of Rs.75.08 crore, a 16.38 per cent increase in the second quarter ended September 2018. The company’s net profit for July- September a years ago was Rs.64.51 crores.
Its revenue stood at Rs.1,723.27 crore as against Rs.1,540.08 crore, up 11.89 per cent. For Arvind Ltd., the overall revenue growth in Q2 came on the back of 15 per cent growth in garments revenue and 21 per cent in the advanced materials division’s revenue. The Q2 profit without de-merger was up 30 per cent at Rs.86 crores against Rs.66 crore, while revenue soared up to 12 per cent at Rs.3,053 crores against Rs.2,735 crores.
Meanwhile, the company confirmed that NCLT has approved the scheme of de-merger of its branded apparels and engineering businesses. The effective date of split of its businesses and record date for allotment of shares is likely to be end of November.
Post de-merger, there will be three different companies, namely Arvind Ltd, Arvind Fashions and Anup Engineering Ltd.
Ahmedabad-based Arvind Ltd is anticipating the ROCE (Return on capital employed) to better with investments in the forward integration business than in the current textile business. The other areas of focus are advanced materials and technical textiles.