Arvind logs net loss of Rs97cr in Q1FY21; Expects net borrowing to return pre-COVID level in Q2

Q1 net loss, however, has widened against loss of Rs17.32cr of the preceding quarter.

Aug 31, 2020 04:08 IST India Infoline News Service

Textile manufacturer, Arvind recorded a consolidated net loss of Rs97cr during June 2020 (Q1FY21) quarter compared to a profit of Rs24.39cr in the corresponding period of the previous year. Q1 net loss, however, has widened against loss of Rs17.32cr of the preceding quarter.

Consolidated revenue from operations was squashed to Rs599.28cr in the quarter under review, compared to revenue of Rs1,896.45cr a year ago same period and Rs1,641.56cr of the previous quarter.

Key highlights of Q1FY21:
  • Denim volumes have recovered to around 70% in July – Export volumes fully recovered,
  • Domestic still lagging; Woven volumes recovered to 64% in July, expect ramp-up in Q3
  • Monthly garment volumes recovered to ~60% by June
  • Advanced Materials monthly revenues and margins have fully recovered to pre-COVID levels
  • Multi-pronged program resulted in a long term fixed cost reduction of 15%
Arvind in its audit report said, "Net borrowing likely to return to March-end levels, by end of Q2." The company said, liquidity position comfortable.

On Sensex, following the result announcement, Arvind stock ended at Rs33.40 per piece down 6.05%. 

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