Arvind Ltd Sees Slump in Q1 Profits Amid Workers' Strike and General Elections

Leading textile manufacturer Arvind Ltd reported a significant 37.25% decline in net profit, reaching Rs 43.73 crore for Q1 ending June 30, 2024. The downturn was attributed to a workers' strike and the general elections. Revenue and EBITDA also took hits due to these disruptions.

Leading textile manufacturer Arvind Ltd reported a 37.25% decline in consolidated net profit to Rs 43.73 crore for the first quarter ending June 30, 2024. The dip was attributed to a workers' strike and the general elections.

In the corresponding period last year, the company had posted a net profit of Rs 69.70 crore. Arvind Ltd's revenue from operations dropped 1.22% to Rs 1,830.60 crore during the quarter. This marks a downtrend from Rs 1,853.27 crore in the same period of the previous fiscal year.

The company's performance was impaired by disruptions at its Santej factory, affecting key segments like woven, denim, and parts of the Advanced Materials Division (AMD). The strike resulted in a significant revenue loss of approximately Rs 200 crore and an Rs 60 crore hit on EBITDA, including increased costs such as air freight and additional worker expenditures.

(With inputs from agencies.)