Arvind Ltd, an Ahmedabad-based textile and apparel company, recorded a 13 percent increase in profit after tax (PAT) for the third quarter of the financial year 2024-25, fueled by growth in its garmenting and fabric divisions. This marks the highest PAT the company has achieved in the last 10 quarters.
The company reported a profit of ₹103 crore for the quarter ending on December 31, 2024, with revenues also seeing a boost of 11 percent to ₹2,089 crore during the same period. The surge in sales during the festival season, which spanned November to December, contributed to the increase in revenues.
Despite facing challenges in the first two quarters, Arvind Ltd saw muted growth in its advanced materials division (AMD) but experienced a significant uptick in other businesses like garmenting, which saw a 21 percent volume growth. The company reported volume gains across all segments, including fabric, garmenting, and AMD, supported by stable raw material costs and a favorable product mix.
One of the highlights was the woven fabric segment, which achieved a volume of 35 million meters, a 7 percent year-on-year growth and the highest volume in the past three years. Additionally, the denim fabric volume registered a 19 percent growth year-on-year, despite a weak season for denim products. The garmenting division also performed well, achieving a full garment volume of 9.3 million pieces, a 21 percent growth year-on-year.
Arvind Ltd is actively pursuing its capex programs for FY25, with investments expected to reach ₹400-₹450 crore.
The article was first published on January 28, 2025.
