India : Arvind plans new leaf for fabrics with rosy Q2 sales

Arvind Mills Limited, one of the largest integrated textile players in the world have announced their financial results for Quarter ended 30th September, 2007.
The sales for the Quarter is up by 14% at Rs.564 Crores as against Rs.493 Crores in the corresponding quarter last financial year.
Profit before tax is up by 117% at Rs.11 Crores compared to Rs.5 Crores in the corresponding quarter of previous financial year.
Profit after tax at Rs.11 Crores is up by 122% compared to Rs.5 Crores in the corresponding quarter of the previous financial year. The revenue and earnings have shown positive signs both, year on year and sequential basis.
Even though the fabric and garment business of the company is under pressure due to rising rupee and increasing cotton cost, the marketing efforts have ensured better earnings. The pressure on earnings will increase as the cotton cost is likely to go up in the coming quarters.
The branded apparel and retail business of the company has returned yet another quarter of solid performance. The like to like sale of the company grew by 36% and the company has returned a positive EBIDTA during the current quarter and the performance in the coming quarters is likely to improve further.
The company has added another 88 doors during the current quarter. The company also announced the licensing arrangement for US Polo Association and cherokee.

During the quarter company also announced the launch of large format MegaMart store in Chennai, Hyderabad and Pune.
Commenting on the results, Mr. Jayesh Shah, Chief Financial Officer and Director said : “On one hand the company is facing the challenges posed by Macro economic factors in its fabrics and garment business and on the other hand the brands and retails business is growing from strength to strength.
The company is confident of turning a new leaf both in its core fabrics and garment business as well as the new age branded apparel and retail business.
The marketing and operational efforts are likely to yield better results in the second half of the current financial year”.