Arvind India Q2 profit rises 16 pc to Rs 75 crore
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Textile and apparel player Arvind Ltd on Thursday reported a 16.38 percent increase in its consolidated net profit to Rs 75.08 crore for the second quarter ended September 2018. According to a report: The company had posted a net profit of Rs 64.51 crore in the July-September period a year-ago, Arvind Ltd said in a BSE filing.
Total income during the quarter under review stood at Rs 1,815.98 crore, up 12.85 percent, as against Rs 1,609.10 crore in the corresponding quarter of the previous fiscal.
Total expenses stood at Rs 1,723.27 crore as against Rs 1,540.08 crore, up 11.89 percent.
Meanwhile, the company said that as NCLT has approved the scheme of demerger for its branded apparels and engineering businesses, “the reported financial statements reflect figures for continuing businesses only”.
“Pending receipt of order and other conditions precedent in the Scheme, the Group has considered the business of Engineering and Branded Apparel Undertaking as ‘Discontinuing Operations’,” the company said.
Arvind’s net profit for the period from continuing operations rose to Rs 56.10 crore as against Rs 48.48 crore earlier.
Net profit after tax from discontinuing operations was at Rs 18.98 crore as compared to Rs 16.03 crore.
“The effective date of demerger and record date for allotment of shares is likely to be end of November,” it added.
Questions & Answers
Q.What is the reason given for the profit increase in the second quarter?
What is the reason given for the profit increase in the second quarter?
The company reported a 16.38 percent increase in its consolidated net profit, rising to Rs 75.08 crore for the second quarter ended September 2018. This is an improvement from Rs 64.51 crore in the same period a year ago.
Q.How did the demerger affect the reported financial figures for Arvind Ltd?
How did the demerger affect the reported financial figures for Arvind Ltd?
Due to the approved demerger, the financial statements reflect figures only for continuing businesses. The engineering and branded apparel undertakings are considered 'Discontinuing Operations' until the scheme is finalised.
Q.What was the total income reported by Arvind Ltd during this quarter?
What was the total income reported by Arvind Ltd during this quarter?
Total income for the quarter under review stood at Rs 1,815.98 crore. This represents a 12.85 percent increase compared to Rs 1,609.10 crore in the corresponding quarter of the previous fiscal year.
Q.When is the demerger expected to become effective?
When is the demerger expected to become effective?
The effective date of the demerger and the record date for the allotment of shares is likely to be the end of November. This follows the National Company Law Tribunal's approval of the scheme.
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