The Hindu Business Line : Arvind Mills net down 35 pc

AHMEDABAD: Arvind Mills Ltd (AML) has posted a net profit of Rs 18 crore for the quarter ended June 30, a 35 per cent fall from Rs 28 crore in the corresponding period last year.

The slide in profitability came despite the company posting a 6 per cent top line growth at Rs 396 crore compared to Rs 373 crore for the pervious first quarter.

According to the company, it was high cotton and naphtha prices that adversely impacted its operating margin in spite of full denim and shirting fabric volumes.

The operating profit for the quarter fell to Rs 89 crore (Rs 98 crore).

Mr Jayesh Shah, Chief Financial Officer and Director, Arvind Mills, said, "In spite of resurgent denim demand, the results of the current quarter have been adversely affected by increased input cost. The power and fuel cost increase would be addressed once the captive power plants shift to gas as fuel and new cotton season opening in October would determine the future cotton costs."

During the quarter, the company acquired 12,61,233, equity shares of Rs 10 each aggregating 1.56 per cent of the paid-up equity capital of Arvind Products Ltd, a subsidiary of Arvind Mills . Also, the company is planning to debottleneck its manufacturing facility to increase denim fabric capacity by 8 per cent by the third quarter of this fiscal.