Arvind Ltd Q3 Profit Up 13%: Textiles Drive Growth

New Delhi, Jan 28 (PTI) Leading textile manufacturer Arvind Ltd on Tuesday reported 12.63 per cent increase in consolidated net profit at Rs 106.24 crore for the third quarter ended December 2024, driven by volume growth across its various business segments.

The company had posted a net profit of Rs 94.32 crore in the October-December period a year ago, according to a regulatory filing from Arvind Ltd.

Revenue from operations was higher at Rs 2,089.21 crore during the December quarter as compared to Rs 1,888.24 crore in the corresponding period of the previous fiscal.

The growth was driven by its textiles segment, where its garments volume was over 9 million pieces in four quarters in a row, reporting a growth of 21 per cent, said Arvind in its earning statement.

"Woven fabric, which is running at 100 per cent utilisation, achieved a volume of 35 million meters, a growth of 7 per cent on a year-on-year basis. This is the highest volume in the past three years," it said adding the current product mix trend shows a higher percentage of knitted products in the overall basket.

Moreover, Arvind's denim fabric volume registered a growth of 19 per cent on a y-o-y basis, despite a weak season.

Revenue from textiles was at Rs 1,576.84 crore, up 10.6 per cent and Rs 376.13 crore from Advance Material Division (AMD) in the October-December period.

"The AMD reported a modest 9 per cent growth this quarter. This is mainly attributed to the largest division of protective clothing witnessing a change in product mix skewed towards lower value items thus diluting the value of growth in spite of good volume growth," said Arvind Ltd.

Total expenses in December quarter were at Rs 1,953.55 crore, up 10 per cent.

Over the guidance for Q4 and FY25, Arvind said the textile division will continue to do well and indications show upward momentum in AMD and is expected to regain its growth trajectory.

"The company will continue its growth momentum in the financial year 2025-26, while improving the margin and moving towards a targeted ROCE profile of over 20 per cent. We remain steadfast in our goal of investing in our future and improving value for all our stakeholders," it said.

On the capex programmes for FY25, Arvind said it is in full steam and expected to touch Rs 400-450 crore.

Shares of Arvind Ltd on Tuesday were trading at Rs 320.5 apiece on BSE, down 10.36 per cent from the previous close.