Arvind Ltd’s Q4 profit rises on stable textile demand

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The fourth-quarter profit of Arvind Ltd, an Indian apparel store famous for carrying international labels like Calvin Klein, Tommy Hilfiger, and Arrow, increased by 2.1%. Consistent demand for its textiles has been driving this increase, demonstrating resilience in the face of difficult market conditions.

From 970 million rupees the previous year, the consolidated net profit skyrocketed to 990.3 million rupees ($11.9 million), according to the company’s disclosure. Retailers in India, such as Arvind, have quickly responded to slow demand and reduced customer spending by offering products at discounted rates.

Indian merchants are seeing slower volume growth despite facing heightened competition. But Arvind did manage to boost operational income by a significant 10.3 percent. The company’s main textile business, which accounts for around 72% of total sales, also saw growth, with a 5% increase in revenue.

Denim sales saw a comeback throughout the quarter, according to Arvind, who also saw increases in garment and woven product sales. Also, its advanced materials division, which makes things like construction safety gear and fabrics, had an impressive 21% rise.

Arvind was upbeat about the demand forecast for FY2025, stating that things like inventory correction, new order bookings, and customer onboarding will improve the situation. The retailer plans to increase its capital investment to 4-4.50 billion rupees for new initiatives in order to support its growth trajectory.

A dividend of 4.75 rupees per share, including a one-time special dividend, was agreed by Arvind as a means of rewarding shareholders. Competition from stores like Shoppers Stop and Trent, which is owned by the Tata Group, has also shown encouraging financial results, suggesting that the Indian retail sector is on the mend. Thanks to strong demand for its beauty and luxury goods, Shoppers Stop’s profit increased by 53% in the fourth quarter. Just like that, Trent’s lower-priced Zudio brand of stores expanded, leading to a fivefold rise in quarterly profit.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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