Arvind Q2 pre-tax profit increases on strong demand

Image Courtesy: arvindfashions.com

Due to increasing demand for textiles as consumers splurged on apparel before the holidays, Indian clothing retailer Arvind has reported a 19 per cent increase in second-quarter pre-tax earnings, which caused its shares to gain 5 per cent.

The business, which distributes global names like Calvin Klein, Tommy Hilfiger, and Arrow, reported that its consolidated earnings before taxes increased to US $ 16.1 million from US $ 13.55 million the previous year.

Because affluent domestic customers spent more throughout the holiday season, there was a continued high demand for textiles, according to researchers.

The company claimed that improved demand and the addition of new clients were the primary drivers of volume increase in its core textile division. Arvind reported a roughly 14 per cent increase in operating revenue, while its core textile segment—which makes up almost 74 per cent of total sales—saw a 12 per cent increase in revenue.

Arvind’s advanced materials segment (AMD), which produces protective gear and textiles for construction, expanded by 9 per cent.

According to Arvind’s investor presentation, the textile division has a healthy order book and is anticipated to perform well in the second half of the fiscal year. AMD is also anticipated to perform well and achieve a 20 per cent volume rise.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin decreased to 10.1 per cent from 10.7 per cent a year ago due to a 13 per cent increase in total expenses to US $ 245 million.

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