Arvind Limited, one of the largest integrated textile and branded apparel players has recorded strong growth in consolidated revenue and net profits in the first quarter for fiscal year ending June 30, 2014 which grew by 19% and net profits which rose by 14%.
Revenues in the quarter rose to Rs. 1773 crores against Rs. 1491 crores in the corresponding quarter of the previous year. Consolidated EBIDTA is up by 13% at Rs. 223 crores as against Rs. 197 crores in the corresponding quarter of the previous year. Profit after tax grew by 14% to Rs. 90 crores as compared to Rs. 79 crores in the corresponding quarter for the last year.
Commenting on the results, Mr. Jayesh Shah, Director & Chief Financial Officer said, "The revenue growth of 19% is led by 26% growth in Brands & Retail business and 13% growth in Textile business with stable operating profit margin expansions in both the businesses."
Arvind Infrastructure Limited (AL), a wholly owned subsidiary of Arvind Limited (AL) is engaged in real estate development. Over the years, AIL has successfully undertaken several development activities and achieved excellent market reputation as a quality developer.
As of now, AIL is managing 11 projects in Ahmedabad and Bangalore with 5.3 Million sq ft over 360 acres of land. In order to drive the growth of real estate business independently, the Board of Arvind Limited has approved the Scheme of Arrangement between Arvind Limited and AIL for de-merger and transfer of real estate undertaking to AIL.
AIL will issue, to the shareholders of Arvind Limited, 1 share of Rs 10/- each for every 10 shares of Rs 10/- held by them in Arvind Limited and Arvind Infrastructure Limited (AIL) shall be separately listed on Stock Exchange.
Commenting on the demerger of real estate business, Mr. Jayesh Shah said, "Arvind sees an attractive opportunity and strategic fit in real estate development. The demerger will allow Arvind to deploy its resources fully in its core activities and allow AIL to raise further capital and debt as required for its growth."
