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Faced with net loss of ₹77 crore on standalone basis for the quarter ended June, textile major Arvind Ltd on Monday said it expects to attain the pre-Covid levels of performance in the next 6-9 months.
After its board of directors’ meeting on Monday, Arvind Ltd announced its financial results for the first quarter, which was affected by the Covid-19-induced lockdown. The company had registered a net profit of ₹33 crore in the corresponding quarter a year ago.
Total standalone revenues from operations stood at ₹493 crore against ₹1,742 crore in the same quarter last year. Arvind’s June/July numbers indicate recovery of revenues to around 60 per cent of the previous year, and EBITDA to a healthy 11 per cent.
Covid-19-induced lockdown had substantially impacted the normal business operations of the company by way of interruption in production, supply chain disruption, unavailability of personnel, closure of production facilities etc during the lockdown period till May 17. Arvind also said that it has assessed its liquidity position for the next 12 months.
“Based on the current indicators of future economic conditions and estimates made by the management, the company expects to recover the carrying amount of these assets. It expects short term challenges in operating environment and has undertaken various cost containment initiatives which will yield results in medium to long term. At this time, the company expects to attain the pre-covid levels of performance in 6-9 months,” Arvind said in a note to the results.
As a result of the lockdown, the volumes for the quarter was also impacted. Revenues from operations and profitability also decreased due to Covid-19 related market volatility. Therefore, the results of quarter are not comparable to the previous corresponding period results,” it said.
On a consolidated basis, the company posted net loss of ₹97 crore, as against a net profit of ₹24 crore in the corresponding quarter a year ago. Consolidated revenues from operations stood at ₹599 crore for the quarter against ₹1,896 crore in the same quarter a year ago.
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