Q1 Results: Earnings Impacted By Costs Related To Commissioning Of New Plants, Says Arvind
Arvind Ltd.’s first quarter earnings were muted because it commissioned six new plants during the period, the textile maker’s Chief Financial Officer Jayesh Shah said.
The second quarter of the financial year 2020 will also be muted, he told BloombergQuint in an interview. Because of the new plants, “we have pre-operative losses coming in without corresponding revenue or the margins,” he said. However, this is a planned movement, he added.
The second half of FY20 will witness a goof performance, Shah said. From the third quarter, these losses will stop reflecting in the financial statements and the company will record “normal” margin, he added.
Key Earnings Highlights:
- Net Profit fell 61.3 percent to Rs 24.1 crore.
- Revenue rose 4.8 percent to Rs 1,896.45 Crore.
Watch the full conversation here: