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The textiles segment likely to grow 10 percent, says Arvind

Updated : August 07, 2018 11:44:00 IST

Textile and apparel player Arvind said that the textiles segment is likely to 10 percent with an improvement in margins.

The company is also expecting the branded apparels segment to continue to see more than 20 percent growth, said Kulin Lalbhai, executive director of Arvind.

Arvind has posted weak earnings but the management guidance is positive.

The company on Tuesday reported 13.32 percent increase in consolidated net profit to Rs 64.31 crore for the first quarter ended June 30, 2018-19. It had posted a net profit of Rs 56.75 crore in the April-June quarter of 2017-18.

“The revenue achievement was very strong and we had an EBITDA growth of 75 percent which is strong operating leverage kicking in in the business as the brands mature,” Lalbhai said.

The final nods for the demerger of the branded apparels business is expected in early Q2.

“We expect the demerger to happen sometime in August and then the relisting of the brands and the engineering business possibly sometime in October,” Lalbhai said.

The company's debt this year would be on working capital, no long-term debt would be incurred by the business, he said, adding that the capex is fully funded by internal cash flows.
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