Arvind’s net profit rejuvenated in Q4

Arvind has declared its quarterly results on May 12. The company’s revenue has increased by 13.668 per cent to Rs 2320 crore in Q4FY16 as compared to previous financial year. Its EBITDA too has risen by 14.3 per cent to Rs 297 crore in Q4FY16 on a yearly basis. Arvind’s EBITDA margin has expanded by 7 basis points to 12.79 per cent in Q4FY16 as compared to same period in previous fiscal year. The company’s Net Profit also has increased by more than two folds to Rs 110 crore in Q4FY16 on a yearly basis. Its Net Profit margin has expanded by 240 basis points to 4.76 per cent in Q4FY16 as compared to previous financial year.

On the yearly front, Arvind’s top line has increased by 7.63 per cent to Rs 8450 crore in FY16 as compared to previous financial year. The company’s EBITDA has increased by 5.16 per cent to Rs 1065 crore in FY16 on a yearly basis. However, its EBITDA margin has contracted by 30 basis point to 12.6 per cent in FY16 as compared to previous financial year. Arvind’s Net Profit also has risen by 6.33 per cent to Rs 363 crore in FY16 on a yearly basis. However, the company’s Net Profit margin has contracted by 5 basis points to 4.29 per cent in FY16 as compared to previous fiscal year.

On segmental revenue front, Arvind has earned 63.96 per cent from Textile segment; 29.64 per cent from Garments segment; 1.39 per cent from Real Estate segment; and 5 per cent from others segment during FY16.

The share price of Arvind has increased by 1.21 per cent on bourses in early trades; and is trading at Rs 300.6 on an intraday basis.

Arvind manufactures cotton shirting, denim, knits and bottom weights (Khakis) fabrics, and jeans and shirts. The company's business segments include: Textiles, Brands and Retail, Real Estate and others. Its brand portfolio includes International brands like Arrow, US Polo, Izod, Elle and Cherokee. Arvind also operates apparel value retail stores named MEGAMART. It also operates specialty retail stores under the licensing arrangement with international brands of  the likes of Debanhams and Next.