Financial Daily from THE HINDU group of publications
Saturday, Aug 02, 2003
Financial Daily from THE HINDU group of publications Saturday, Aug 02, 2003 |
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Corporate Results
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Textiles Arvind Mills nets Rs 28.08 cr in Q1 Our Bureau
Ahmedabad , Aug. 1 ARVIND Mills Ltd (AML) has reported a net profit of Rs 28.08 crore for the first quarter of 2003-04 as against Rs 25.58 crore in the corresponding quarter last year. Sales for the quarter stood at Rs 369.63 crore (Rs 353.81 crore). The marginally better results came despite a drop in operating margins due to higher cotton prices while cash profit improved to Rs 65.21 crore (Rs 62.56 crore). Arvind continued to take advantage of its restructured debt portfolio by reducing its interest and finance cost in the period under review, with an outflow of Rs 31.75 crore (Rs 40.72 crore). The company carried on with its bullish run on the export front, with as much as 51 per cent coming in at Rs 188.51 crore. The segment-wise sales remained more or less static with denim fetching Rs 230 crore (Rs 223 crore), shirting Rs 73 crore (Rs 72 crore) and knits Rs 13 crore (Rs 9 crore). However, the company managed to add two big-ticket customers to its customer base in the knits division through Reebok and Outerbank, a division of Sara Lee. Meanwhile, the company, as part of its strategy to go in for vertical integration of all its plants in a bid to take advantage of the dismantling of the quota regime, was setting up a shirting plant at Bangalore and a jeans manufacturing facility at Mauritius. Commenting on the results, Mr Sanjay Lalbhai, Managing Director, said, "In the immediate term, we are taking several initiatives to reduce the impact of the sharp rise in cotton prices and the strengthening rupee. We continue to pursue our strategy of vertical integration to take advantage of quota dismantling from the end of 2004 and have already started investing in garmenting facilities in all our products segments. The implementation of the new shirts plant at Bangalore and the jeans plant at Mauritius is progressing well and will become operational by October 2003."
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