Arvind Q3 profit slumps on low sales of denim

BENGALURU: Textile maker Arvind Ltd reported a 9.3% drop in quarterly financial gain on Wednesday, hurt by weak desire for denim clothes.
The Ahmedabad-dependent business posted a internet financial gain of 841.2 million rupees ($10.30 million) for the three months ended Dec. 31, from 927.7 million rupees a calendar year previously.
The corporation, which supplies fabric to models this kind of as Calvin Klein, Ed Hardy, and Tommy Hilfiger, claimed its quarterly revenue from functions fell 12.8% to 19.80 billion rupees from past yr.
Although need and volumes of woven fabric remained steady in the course of the quarter, denim continued to battle due to reduced need and more than-supply, Arvind reported in a assertion.
The company’s earnings from the textiles section, which contributes about 80% of the company’s complete earnings, fell 19.2% to 15.49 billion rupees in the quarter. Profits from denims, which is incorporated in the textiles phase, fell 44.8%.
Its highly developed materials unit documented a 26.5% rise to 3.38 billion rupees.
The selling price realisations started to development down considering that the 2nd quarter reflecting the current softness in uncooked materials selling prices, the company claimed.
Arvind’s expenditures have been down 11% in the quarter.
“Marco ecosystem in US and EU markets has commenced to display some enhancement in the outlook, while the over-all prognosis nevertheless remains cautious given nonetheless better-than-target inflation in US, continuing war in Europe and reopening of China,” Arvind said.
Demand from customers for Indian textiles in global markets was strike as consumers lower expending on clothes adhering to a surge in inflation immediately after the war in Ukraine.