Indian textile and apparel major Arvind Limited has released its third quarter report. During the period, the company saw its consolidated net profit dip 49 percent to Rs. 40 crore as compared to Rs. 79 crore in the same period of the previous fiscal.
The textile company’s total income also dropped 38 percent to Rs. 1,680 crore in December 2018 from Rs. 2,706 crore in December 2017.
“Denim volumes were lower by 5 million metres largely on account of weak off take by a few international customers leading to overall reduction in revenue by 7 percent. This was offset by 32 percent increase in revenue of advanced materials business,” the company said.
The company now expects overall growth of about 5 percent in revenue and improvement in overall profitability with textile volumes normalising in the next quarter.
Arvind is expecting its sales from e-commerce to increase in the coming months despite uncertainty in the sector after tightening of norms by the government for e-commerce companies in the country.
The company expects its online sales from e-commerce firm to double in the coming years. At present, online sales contribute around 15 percent to the Arvind’s overall revenues.
Furthermore, Arvind has earmarked an investment of Rs. 500 crore to expand its textile business in Indian and is expecting Rs. 12,000 crore from its textile business by 2023.
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