Scripscan:Arvind Ltd
cmp:87
Code:500101
Story:As expected, like FY11, the company ended Q1FY12 on a high note, keeping the growth momentum going as others struggle to sustain. The company attributed the growth in profits to a rise in revenues coupled by improvement in operating margins in both textiles, brands and retail businesses. Its consolidated net profit surged over two-fold to Rs.61.05 crore on a YoY. Net sales rose to Rs 1,180.17 crore v/s to Rs 838.97 crore in Q1FY11. Overall growth was led by growth in domestic market on the back of strong B2C business model which Arvind has created. With fall in cotton prices, the demand for fabrics, which has been sluggish for past few months, is expected to only rise.Raw material cost on YoY rose 31% and employee cost was 14%. Interest cost is pretty high at Rs.84 crore, a rise of 29% on YoY. With current spike ups in interest rates, this cost is expected to rise further in the coming quarter. Arvind is banking big on its realty business in current fiscal. It has already formed a JV for a large township project with Tatas for its 134 acres into a SPV. 50% of the value of land, Rs.125 crore is expected to accrue to the company in current fiscal. For FY12, the company hopes to notch up a turnover of around Rs.4800 crore and if it is able to maintain the same margins, then a net profit of around Rs.195 crore. On an equity of Rs.257.81 crore (includes Rs.3.41 crore from merger with Arvind Products) the FY12 EPS of Rs.7.55 discounts the current price by around 12 times. A good bargain for the largest denim making company in the world.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
