Arvind Retailers Q2FY25 results: Pre-tax profit rises 19% to Rs 135 crore

Indian clothing retailer Arvind posted a 19 per cent rise in second-quarter pre-tax profit on Monday, aided by strong textiles demand as customers splurged on clothes ahead of the festive season, sending its shares 5 per cent higher. 

The company, which sells international brands such as Tommy Hilfiger, Arrow and Calvin Klein, said its consolidated profit before tax rose to Rs 135 crore, from Rs 114 crore a year earlier. 

Demand for textiles remained strong during the festive season, as wealthy domestic consumers spent more, analysts noted.

The company said volume growth in its mainstay textile segment was mainly due to new customer acquisition and better demand.

Arvind posted a near 14 per cent rise in revenue from operations, while revenue from its core textile segment, which accounts for nearly 74 per cent of total sales, grew 12 per cent. 

The advanced materials segment (AMD), through which Arvind makes fabrics and protective gear for construction work, grew 9 per cent. 

Textile division has a buoyant order book, and is expected to do well in the second half of the financial year, Arvind said in its investor presentation, adding that AMD is expected to do well and touch a volume growth of 20 per cent. 

Its total expenses rose 13 per cent to Rs 2066 crore, which led earnings before interest, tax, depreciation and amortization (EBITDA) margin to contract to 10.1 per cent from 10.7 per cent a year ago. 

The company reported an increase in deferred tax provision worth Rs 293.5 crore during the quarter.

Last week, rival Shoppers Stop reported a loss for a second straight quarter, as high inflation led customers to cut back on discretionary spending.

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