Leading textile manufacturer Arvind Ltd shares rallied 6% after the company reported a 12.7% YoY increase in net profit and announced a final and special dividend for the financial year.
Leading textile producer Arvind Ltd announced on Thursday that tax advantages helped its consolidated net profit climb by 12.7% to Rs 97.30 crore for the fourth quarter ended March 2023 from Rs 86.34 crore in the prior period.
Arvind’s net profit for the fiscal year 2023 increased 71% to Rs 413.17 crore. At the same time last year, it reported a net profit of Rs 241.58 crore.
However, during the quarter under review, its revenue from operations fell 14.4% to Rs 1,880.76 crore. In a similar period of the prior fiscal, it was Rs 2,197.04 crore. In FY23, its consolidated revenue from operations was Rs 8,382.48 crore, an increase of 4.65% over the previous fiscal year.
Arvind’s overall spending decreased 13% to Rs 1,794.09 crore from Rs 2,061.97 crore the previous year.
Arvind earned Rs 1,430.98 crore from textiles during the quarter and Rs 319.71 crore from advanced materials. Its overall income for the three months ending in March decreased by 14.21% to Rs 1,893.09 crore.
Subject to approval by shareholders, the company’s board proposed a final dividend of Rs 3.75 per equity share and a one-time special dividend of Rs 2 per equity share, for a total payout of Rs 5.75 per equity share, for the fiscal year ending March 31, 2023.
Shares of Arvind Ltd closed at Rs 123.35 per share, 6.02% or Rs 7 higher than the previous close.