Apparel and textile firm Arvind Ltd on Friday said its consolidated net profit surged over three- fold to Rs 63.07 crore for the fourth quarter ended March 31, 2011 over the same period previous fiscal.
The company had reported a consolidated net profit of Rs 19.81 crore in the same period last fiscal, Arvind said in a filing to the Bombay Stock Exchange (BSE).
For the year ended March 31, 2011, the company posted a net profit of Rs 164.87 crore, compared to Rs 49.96 crore in the previous fiscal.
Commenting on the results, Arvind Director and CFO Mr Jayesh Shah said: “We have not only achieved robust revenue growth but we also improved the operating profit margins despite sharp increase in input costs.”
“We are also on track as far as our plans for unlocking the value of our land bank which will lead to significant improvement in shareholders’ value,” the filing added.
The company’s board, which met today, has recommended fund raising up to Rs 300 crore through issue of securities, it said.
The company’s net sales for the year ended March 31, 2011 rose to Rs 1,190.73 crore, compared to Rs 739.83 crore in the previous fiscal.
The company’s board has also approved the merger of Arvind Products Ltd (APL) with itself. Arvind Ltd has 54 per cent stake in APL.
“...the proposed merger will bring significant operational synergies leading to savings in costs for the combined entity,” the company said.
Consequent to the merger, share capital of Arvind Ltd will increase by Rs 3.41 crore, it added. “The share exchange ratio as approved by the board is 1 share of Arvind Ltd for 11 shares of APL,” it said.
On a standalone basis the company posted a net profit of Rs 56.07 crore for the fourth quarter, compared to Rs 15.39 crore in the same period previous fiscal. Shares of Arvind today closed at Rs 73.10 on the BSE, up 3.18 per cent from its previous close.