Textiles major Arvind Ltd will raise up to ₹200 crore through the non-convertible debentures (NCDs), the company informed on Thursday.

At its meeting held on Thursday, the textile major’s board of directors have approved the “issue of Non-Convertible Debentures up to ₹200 crore, in one or more tranches, on private-placement basis,” the company said in a regulatory filing.

The board of directors also approved its financial results for the quarter and financial year ended March 31, 2023.

Financial results

On a standalone basis, Arvind Ltd has recorded net profit of ₹49 crore for the fourth quarter, as against net loss of ₹97 crore a year ago. Standalone revenues from operations stood at ₹1,707 crore, down 7.5 per cent as against ₹1,846 crore recorded in the same quarter last year. The company turned to profit as its total expenses reduced to ₹1,631 crore, 13 per cent down from ₹1,876 crore in the corresponding quarter a year ago.

For the full year, the company posted standalone net profit of ₹346 crore, versus ₹59 crore, with a staggering 5x growth or 486 per cent year on year. This was due to the exceptional items of ₹241 crore recorded last year as provisioning for impairment of investments and loss/loan on sale of investments etc. The company’s annual revenues increased 4 per cent to ₹7,723 crore, as against ₹7,436 crore a year ago. The company’s expenses stood at ₹7,388 crore as against ₹7,035 crore a year ago.

Notably, the board of directors has recommended the final dividend of ₹3.75 per equity share and a one-time special dividend of ₹2 per equity share — totalling ₹5.75 per equity share — of the face value of ₹10 each for the financial year ended March 31, 2023.

Quarterly performance

On a consolidated basis, Arvind Ltd posted net profit of ₹97 crore for the quarter ended March 31, 2023, as against ₹86 crore in the corresponding quarter a year ago. Revenues from operations stood at ₹1,881 crore, down 14 per cent from ₹2,197 crore a year ago.

For the fiscal 2022-23, the company’s net profit stood at ₹413 crore, up 71 per cent as against ₹242 crore last year. Revenues were ₹8,382 crore for the fiscal, up from ₹8,010 crore a year ago.

On consolidated segment revenues, Arvind Ltd’s textiles division posted revenues of ₹6,716 crore for 2022-23, up 1 per cent from ₹6,644 crore last year, whereas the revenues from advanced materials segment grew 22 per cent to ₹1,251 crore, up from ₹1,026 crore last year.

Arvind Ltd shares traded at ₹111.70 on the BSE with marginal loss of 0.58 per cent on Thursday.

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