Arvind Ltd Q4 net profit grows 12.7% to Rs 97 cr

New Delhi: Leading textile manufacturer Arvind Ltd on Thursday reported a 12.7 per cent increase in its consolidated net profit to Rs 97.30 crore for the fourth quarter ended March 2023, mainly helped by tax gains.

The company had posted a net profit of Rs 86.34 crore in the year-ago period, Arvind said in a regulatory filing.

However, its revenue from operations was down 14.4 per cent to Rs 1,880.76 crore during the quarter under review. It was Rs 2,197.04 crore in the corresponding period of the previous fiscal.

Arvind’s total expenses declined 13 per cent to Rs 1,794.09 crore from Rs 2,061.97 crore a year ago.

During the quarter, Arvind's revenue from Textiles was Rs 1,430.98 crore and Rs 319.71 crore from Advanced Materials.

Its total revenue in the March quarter fell 14.21 per cent to Rs 1,893.09 crore.

For fiscal 2023, Arvind's net profit surged 71 per cent to Rs 413.17 crore. It had reported a net profit of Rs 241.58 crore in the year-ago period.

Its consolidated revenue from operations was Rs 8,382.48 crore in FY23, 4.65 per cent higher than the preceding fiscal year.

"Arvind Ltd closed the financial year at a net debt of Rs 1,327 crore, which was Rs 356 crore lower than March 2022 levels. Long-term debt reduced by Rs 304 crore over this period," it said.

Its board has recommended a final dividend of Rs 3.75 per equity share and a one-time special dividend of Rs 2 per equity share, totalling Rs 5.75 per equity share of face value Rs 10 each for the financial year ended March 31, 2023.

Arvind's board also approved a plan to raise Rs 200 crore from the market through the issuance of Non-Convertible Debentures on a private placement basis.

Over the outlook, the Ahmedabad-based firm said: "The business environment is still cautious, Arvind remains optimistic about its key businesses and has laid out an investment plan of about Rs 600 crore to augment capacities and deepen its sustainability credentials".

Shares of Arvind Ltd settled at Rs 116.40 apiece on BSE on Thursday, up 3.60 per cent from the previous close.