Arvind surges after approval of stake sale in Arvind Fashions

Arvind has declared its Q2FY17 results on Tuesday. The company’s revenue has increased by 19.11 per cent to Rs 2331 crore in Q2FY17 as compared to same period in previous financial year. Its EBITDA too rose by 1.75 per cent to Rs 232 crore in Q2FY17 on yearly basis. Arvind’s net profit reduced by 41.29 per cent to Rs 57.2 in Q2FY17 as compared to same period in previous fiscal year.

On segmental revenue front, Arvind earned 60.71 per cent from textiles, 31.98 per cent from branded apparels, 0.13 per cent from Arvind Internet and 7.18 per cent from others during Q1FY17.

On half yearly front, Arvind’s top line has increased by 18.46 per cent to Rs 4435 crore in H1FY17 as compared to same period in previous financial year. The company’s EBITDA decreased by 1.04 per cent to Rs 477 crore in H1FY17 on yearly basis. Its bottom line rose by 22 per cent to Rs 192 crore in H1FY17 on yearly basis.

The board of directors of the company has considered and approved the fund raising of Rs 740 crore by diluting 10 per cent stake in its subsidiary, Arvind Fashions, a brand business arm.

The share price of Arvind increased by 11.79 on bourses in early trades and is trading at Rs 398.5 on intraday basis.