On Tuesday, Arvind Fashions Ltd, a prominent participant in the casual and denim market, disclosed a substantial 31.87% rise in its combined net profit, reaching INR 37.03 crore for the quarter ending in September.
In a regulatory filing, Arvind Fashions Ltd (AFL) stated that the company had reported a net profit of INR 28.08 crore in the corresponding period of the previous year.
The company reported that its revenue from operations increased by 7.2%, reaching INR 1,266.94 crore for the quarter, compared to INR 1,181.81 crore in the same period the previous year.
The company noted in its earnings statement that revenues increased during the quarter being evaluated, even in the face of reduced consumer demand. Retail and the MBO (Multi-Brand Outlet) channel primarily drove this growth.
AFL reported “gross margin expansion of 510 bps year-on-year (y-o-y) to 49.5 per cent, led by retail growth of 9 per cent and higher retail channel mix by 400 bps y-o-Y.”
Arvind Fashions Ltd (AFL) reported that its total expenses for the quarter amounted to INR 1,223.29 crore, reflecting a 5.75% increase compared to the corresponding period of the previous year.
During the quarter, its total income increased by 5.79% to reach INR 1,271.48 crore.
“We have delivered the highest-ever quarterly financial performance across revenues, EBITDA & PAT, while consumer demand continued to remain soft during the quarter,” AFL MD & CEO Shailesh Chaturvedi said.
He further added that the company’s improved execution in the retail channel, as well as the introduction of premium offerings in their flagship brands, along with a resolute focus strategy, are consistently delivering positive outcomes.
AFL manages retail stores for prominent international brands including US Polo Assn, Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine.
On Tuesday, Arvind Fashions Ltd’s shares closed at INR 366.70 on the BSE, marking an increase of 8.59 percent.