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Arvind Q3 earnings slumps on very low profits of denim

Posted on January 25, 2023

BENGALURU: Textile manufacturer Arvind Ltd noted a 9.3% drop in quarterly financial gain on Wednesday, harm by weak desire for denim garments.
The Ahmedabad-based mostly company posted a web revenue of 841.2 million rupees ($10.30 million) for the 3 months ended Dec. 31, from 927.7 million rupees a 12 months earlier.
The firm, which provides cloth to brand names this kind of as Calvin Klein, Ed Hardy, and Tommy Hilfiger, reported its quarterly income from functions fell 12.8% to 19.80 billion rupees from very last 12 months.
Whilst desire and volumes of woven cloth remained regular through the quarter, denim ongoing to wrestle owing to decreased demand and in excess of-offer, Arvind said in a assertion.
The firm’s revenue from the textiles segment, which contributes about 80% of the company’s complete earnings, fell 19.2% to 15.49 billion rupees in the quarter. Revenue from jeans, which is bundled in the textiles section, fell 44.8%.
Its advanced materials device reported a 26.5% rise to 3.38 billion rupees.
The cost realisations begun to development down because the 2nd quarter reflecting the modern softness in raw material price ranges, the corporation claimed.
Arvind’s expenses had been down 11% in the quarter.
“Marco ecosystem in US and EU markets has commenced to demonstrate some enhancement in the outlook, however the general prognosis still remains cautious provided still greater-than-goal inflation in US, continuing war in Europe and reopening of China,” Arvind explained.
Desire for Indian textiles in global markets was hit as individuals cut investing on apparel subsequent a surge in inflation just after the war in Ukraine.

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