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Arvind Ltd on Wednesday posted standalone net profit of Rs 71.65 crore for the quarter ended December 2016 as against Rs 88.61 crore in the same quarter last year, showing a drop of over 19 per cent on year-on-year basis.
Total income from operations for the quarter stood at Rs 1,463.9 crore as against Rs 1,331 crore in the corresponding quarter last year.
On consolidated basis, net profit stood at Rs 75.62 crore, down by over 16 per cent from Rs 90.46 crore in the same quarter last year. Total consolidated income for the quarter stood at Rs 2,335.46 crore as against Rs 2,033.78 crore in the same quarter last year.
At a meeting held on Wednesday the company's Board of Directors of Arvind Ltd approved the draft scheme of amalgamation of company's 100 per cent subsidiaries, Arvind Brands & Retails Ltd (ABRL) and Arvind Garments Park Private Ltd (AGPPL) and Dholka Textile Park Private Ltd (DTPPL) with the flagship company Arvind Ltd.
ABRL has been the holding company of various companies involved in brands and retail business.
The amalgamation is expected to benefit Arvind in terms of economies of scales as well as reduction in multiplicity of legal and regulatory compliances, apart from reduction in overheads including administrative, managerial and other expenditure.
In a regulatory filing, the company stated, "Since the investments held by ABRL in various brands and retail companies have been divested and consolidated to another special purpose vehicle, being a subsidiary of Arvind Ltd, it is proposed to merge it with the parent. AGPPL and DTPPL are 100 per cent subsidiary companies formed as SPV to promote garments and Textile Park under government's scheme of promoting garments parks. Now, it is proposed to use the assets purchased by these two companies out of the resources provided by Arvind Ltd for setting up company's own manufacturing plants over a period of time."
Arvind Limited further stated that the move would not only consolidate group's business and operations as well as streamline current organisation structure but also reduce managerial overlaps due to operation of multiple entities.
Arvind Ltd shares ended positive at Rs 371.50 on NSE, up 1.46 per cent from its previous close.
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