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Volume growth coupled with price gains across its business segments has helped Ahmedabad-based Arvind Limited post a 44% growth its standalone net profit for the second quarter of current fiscal 2013-14.
From Rs 64.80 crore in the second quarter of previous financial year 2012-13, the textile conglomerate's standalone net profit grew by 43.95% to Rs 93.28 crore for the Q2 ended September 30, 2013.
Arvind's standalone revenue grew by 9.11% at Rs 1192.89 crore for the quarter ended September 30, 2013 from Rs 1093.27 crore for the corresponding period last year.
One of the largest integrated textile and branded apparel players, Arvind also registered a healthy consolidated net profit growth of 39% at Rs 90.05 crore in Q2 this year as against Rs 64.78 crore last year. In the same period, the company's consolidated revenue rose by 29.71% at Rs 1,718.23 crore, up from Rs 1,324.62 crore.
Further, at the operating level, consolidated EBIDTA for the quarter stood at Rs 233 crore as against EBIDTA of Rs 165 crore for the same quarter last year, registering growth of 41%.
Elaborating on the reasons for the growth, Jayesh Shah, director and chief financial officer, Arvind Limited said, "Buoyed by the all round volume growth as well as price gains across all business segments, the company has achieved very strong financial numbers. The growth in textiles segment is led by volume growth of 21% in wovens fabrics and 46% in garments manufacturing."
Despite a challenging market scenario, Arvind's brands and retail business also registered a steady growth of 45%.
Meanwhile, Shah added that encouraged by such healthy growth in the first half, the company has also revised its internal revenue growth estimates to about 24% from earlier estimate of 20% for the current financial year.
