Arvind Fashions posted a consolidated net profit of Rs 21.30 crore for the fourth quarter (Q4) ended March 31. CNBC-TV18 spoke to Kulin Lalbhai, the director of the company, about the earnings.
"The fourth quarter was a challenge in terms of demand because there was an earlier end-of-year season sale, a lot of demand got pulled in December quarter," Lalbhai said on Friday.
“As soon as we realised that the market is weak, we decided to focus on margins and so we reported the highest gross margins in Q4. In a sense we had to trade off growth for margins,” Lalbhai said.
“The markets are difficult but we are trying to optimise for cash efficiency bottom-line and Q2 onwards we expect to go back to usual growth trajectories of our business,” said Lalbhai.
Going forward we would be exiting some brands that are non-strategic, said Lalbhai.
“We would also be slowing down on new store opening till we get the throughput of the existing network up,” he said.