A revived export market as well as increased domestic orders has resulted in Ahmedabad-based Aarvee Denims & Exports Limited (ADEL) posting a whopping 890 per cent growth in its net profit for the financial year ended 2009-10.
The company announced its audited financial results for the quarter ended March 31, 2010 in the Board meeting of the company held on May 28, 2010. Apart from witnessing a substantial growth in its net profit from Rs 2.32 crore in fiscal 2008-09 to Rs 22.97 crore in 2009-10, the sales and operating income for the year stood at Rs 378.51 crore, up by 16 per cent from Rs 325.12 crore in 2008-09.
The company has declared final dividend for the year 2009-10 at 5 per cent on paid up equity shares; aggregate dividend for the year comes to 10 per cent, including interim dividend of 5 per cent declared and paid during the year.
During the year ADEL brought back zero coupon foreign currency convertible bonds (FCCBs) with face value of USD 7.50 million (approx. Rs 35 crore) out of the total FCCB of USD 20 million, at discount to their face value, as per the RBI approval.
Further, during the year, ADEL redeemed 1,49,91,340, 13 per cent cumulative redeemable non convertible preference shares, which were issued to DEG, Germany along with accrued dividend up to December 31, 2009. These preference shares were due for redemption in June 2010.
After the buyback of FCCB and early redemption of preference shares, ADEL has reduced its long term debt by around 35 per cent.
Aarvee Denims and Exports Limited, Ahmedabad is the second largest manufacturer of denim fabrics in the country with installed capacity of around 60 million metres. The company also manufactures and markets garments under the 'De Extase' brand with a network of around 75 exclusive retail outlets throughout the country.