Volume growth across segments coupled with strong export and domestic demand post Covid has led to Arvind Ltd
registering a profit after tax (PAT) of Rs 71.06 crore for the second quarter ended September 30, 2021. The company had posted a loss after tax of Rs 5.86 crore in the corresponding period last year.
Arvind's consolidated income for Q2 of FY 2021-22 grew by nearly 62 per cent to Rs 2,132.74 crore on a year-on-year (YoY) basis as against Rs 1,318.95 crore in Q2 of FY 2020-21.
Among its business segments, textiles
grew by 68 per cent YoY for the second quarter to Rs 1711 crore on the back of a surge in volumes due to rebound in the domestic market and continued strong export demand. Advanced Materials Division (AMD) too delivered a robust quarter with revenues at Rs 297 crore.
Input costs continued to increase sharply, but were mostly offset by improved price realization and higher efficiencies. However, continuing increase in all input costs impacted percentage margins while higher readymade inventory positions added to working capital requirements. Logistics and shipping challenges continued to hamper movement to Bangladesh and other locations
Within the textiles
segment, denim volumes returned to 25 million meters in Q2 after several quarters even as exports contributed to 59 per cent. On the other hand, wovens clocked a healthy 31 million meters as all segments continued to grow while garment volumes improved to roughly nine million pieces, up by six per cent YoY.
Meanwhile, in terms of price realisation, denim average realisation improved to Rs 214/meter up from Rs 202/mtr in Q1 of FY22 and Rs 190/mtr in Q2 last year. Woven average realization improved to Rs 176/meter, up from Rs 159/m in Q1 of the current fiscal.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.