Textile manufacturer Arvind Ltd on Tuesday reported a 33.83 per cent decline in consolidated net profit at Rs 84.19 crore for the second quarter ended September 30, 2023.
The company had posted a net profit of Rs 127.25 crore for the July-September period a year ago, Arvind said in a regulatory filing.
Revenue from operations was down 11.43 per cent at Rs 1,921.73 crore during the quarter, as against Rs 2,169.81 crore in the corresponding period of the previous fiscal.
"Compared to Q2 FY23, revenues were lower primarily on account of price deflation in tandem with lower input costs," said an Investor Presentation from Arvind after the earnings.
Total expenses in the quarter under review stood at Rs 1,821.72 crore, down 12.07 per cent compared to the year-ago period.
Revenue from textiles was Rs 1,455.32 crore in the September quarter and the same from advanced material (AMD) was Rs 354.49 crore.
Arvind's total income in the September quarter was down 11.35 per cent to Rs 1,933.46 crore.
Over the outlook, the company said revenues and margins are expected to show a slight improvement on a sequential basis.
The company expects its garments volumes to increase gradually and AMD is expected to maintain volume growth.
"Price deflation compared to last year will keep the revenue growth number look muted," it said, adding "Margins will remain strong – both on an absolute as well as percentage basis."
However, "green shoots becoming visible in export markets" as the inventory correction cycle wraps up, said Arvind.
Arvind is one of the largest textile companies in India and is an end-to-end supply chain partner to the world's leading fashion brands.
Shares of Arvind Ltd on Tuesday were trading at Rs 198.45 on BSE, up 11.46 per cent.