Arvind Ltd, a leading integrated textile and branded apparel player, on Wednesday reported a 14 per cent growth in profit-after-tax and 19 per cent growth in consolidated revenue in the first quarter of 2014-15, ended June 30, compared to the corresponding period last fiscal.
While the company’s revenues were Rs 1,773 crore (Rs 1,491 crore), profit-after-tax stood at Rs 90 crore (Rs 79 crore) during the period, according to a statement here.
Commenting on the results as well as outlook of the company, Jayesh Shah, Director and Chief Financial Officer, said that the revenue growth of 19 per cent was led by a 26 per cent growth in brands and retail business and a 13 per cent growth in textile business with stable operating profit margin expansions in both.
De-merger of realty biz
In order to drive the growth of the group’s real estate business independently, the board of Arvind has approved the Scheme of Arrangement with its wholly-owned subsidiary Arvind Infrastructure Ltd (AIL) for de-merger and transfer of real estate undertaking to AIL.
AIL will issue to the shareholders of Arvind Ltd one share of Rs 10 each for every 10 shares of Rs 10 held by them in Arvind Ltd. AIL will be separately listed on stock exchanges.
Arvind Infrastructure, engaged in real estate development, is currently managing 11 projects in Ahmedabad and Bangalore with 5.3 million sq ft over 360 acres.
While commenting on the demerger of real estate business, Shah said that Arvind sees an opportunity and strategic fit in real estate development. The demerger will allow Arvind to deploy its resources fully in its core activities and allow AIL to raise further capital and debt as required for its growth.