Arvind Fashions Ltd on Wednesday reported a consolidated net loss of Rs 45.35 crore in the second quarter ended September 30. The company had posted a consolidated net profit of Rs 7.08 crore in the corresponding period of the previous financial year, Arvind Fashions said in a regulatory filing.
According to a PTI report: Revenue from operations in the second quarter stood at Rs 1,119.45 crore as compared to Rs 1,209.05 crore in the year-ago period, it added.
The company said its board has approved issue of equity shares up to Rs 300 crore on rights issue basis to meet its general corporate purposes including capital expenditure and working capital requirements and to reduce the levels of borrowing.
In the second quarter, the company said, it continued to make progress on its stated goal of exiting non-strategic emerging brands, reducing exposure to long payment-cycle customers and aligning primary sales more closely with secondary sales.
“While these measures are helping the inherent strength of the business, they continue to adversely impact the reported Q2 FY20 revenues and Ebitda (earnings before interest, tax, depreciation and amortisation) for the continuing brands,” it said.
Financial results were also impacted by the ongoing consumption slowdown in the country, the company added.
J Suresh, Managing Director and Chief Executive Officer, Arvind Fashions was quoted by PTI as saying, “We are on track on our strategic decision to exit non-strategic brands and alignment between primary and secondary sales. Brand exits will be completed in Q3.”
He was further quoted by PTI as saying, “While this had a short-term impact on our performance, but it augurs extremely well for long-term health of our business. The external environment continues to remain volatile, but we remain optimistic about our future given our inherent strengths.”
On the outlook, the company said that during 2019-20, it will continue to focus on working capital efficiency through “disciplined efforts around debtors’ control, secondary sales alignment, reduction in inventory and closure of unviable brands and retail stores”.
“We continue to remain optimistic about the future of our business as we take necessary actions to make the company future ready with right capabilities and fit for profitable growth,” it said.