Arvind Ltd’s exports to EU, UK and US to surge in Q2 FY’21
Arvind Ltd expects exports to key markets such as EU, UK, and the US to remain strong in the Q2 FY21 even as domestic revival gains momentum with order book seeing traction.
The company also expects domestic manufacturing activities to return to normalcy. Arvind expects continued increase in input costs to impact margins, as market absorbs increased pricing absolute margins will recover albeit with a lag effect, the company informed. The company also expects to reduce debt to near Q4FY20 levels in the second quarter of the current fiscal year.
In the first quarter, Arvind narrowed its consolidated net loss to Rs 11.42 crore from Rs 97.31 crore in the same quarter last year. Consolidated revenue from operations grew as much as 140 per cent to Rs 1,439.43 crore in Q1 of fiscal year 2021-22, from Rs 599.28 crore in the corresponding period previous fiscal year.
The company’s textiles, comprising denim, woven and garment businesses, grew 170 per cent to Rs 1,176 crore during the quarter, followed by an 81 per cent growth in its Advanced Materials Division (AMD) to Rs 193 crore. Net debt, however, rose to Rs 2,141 crore in June 30, 2021 from Rs 1,950 crore in March 2021.
