India`s Arvind Q3 profit jumps on strong festive demand for textiles
Indian clothing retailer Arvind Ltd reported a 13% rise in its third-quarter profit on Tuesday, boosted by strong demand for textiles during the festive season.
The company, which retails international brands including Tommy Hilfiger, Arrow, and Calvin Klein, posted a consolidated net profit of 1.03 billion rupees ($11.90 million) in the quarter ended Dec. 31, up from 917 million rupees a year earlier.
The festive season, running from September to January, traditionally contributes significantly to retailers' annual sales as consumer spending surges during the period.
Textile manufacturers capitalized on the steady demand by offering discounts to attract buyers, despite the headwinds from persistent inflation.
Arvind reported a near 11% growth in revenue from operations, driven by an 11% increase in revenue from its core textile segment, which accounts for 74% of its total sales.
The textile segment saw strong volume growth during the quarter, aided by new customer acquisitions, while margins remained stable across segments, Arvind said in its investor presentation.
Total expenses grew 10% during the reported quarter as prices of cotton, its key raw material, remained elevated.
The advanced materials segment, through which Arvind makes fabrics and protective gear for construction work, grew 9%.
($1 = 86.5300 Indian rupees)
