Arvind, an integrated texile player, has posted a net loss of Rs 33.17 crore for the quarter ended December, 2008 compared with the gains of Rs 5.67 crore in the corresponding previous quarter.
The company's net sales during the quarter grew to Rs 591.40 crore against Rs 534.45 crore last year, up 10.66 crore. The Ahmedabad-based company, formerly Arvind Mill, attributed the loss to the foreign exchange loss which stood at Rs 35.5 crore in the December quarter. The global meltdown has also affected the company's performance. The growth in sales is mainly contributed by growth in fabric sales, which is on account of higher price realisations of denim fabric and volume growth in other product categories. However, on the brands business, the company witnessed negative growth on the back of sluggish retail sales. The energy cost for the quarter under consideration went up by 2 per cent whereas cotton prices were 37 per cent up. Jayesh Shah, chief financial officer of the company said in a statement, "Although the depreciation in rupee, sharp reduction in energy cost coupled with reduction in other input cost augurs well for the company, we would like to maintain a cautious outlook for the next 12 months on account of global meltdown, which is affecting the retail sales of textiles in all the major consuming markets." In order to reduce the energy cost, the company has tied up with GAIL for gas supply for its captive power plant in December. The textile major said that the gas supply deal would bring down the energy cost by more than 15 per cent. The company's shares were settled at Rs 13.75, down 3.85 per cent on the Bombay Stock Exchange today. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
