September 24, 2023


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Arvind Fashion shares drop by 2%, after negative results

Casual and denim player Arvind Fashions Limited (AFL) reported a consolidated net loss of Rs 65.62 crore in the third quarter ended December 31, 2020. Due to the results, the share of the company is trading in red, almost down by around 2 per cent. At 3.15 pm, the share of Arvind Fashion was trading at Rs 145.95 per piece.

Meanwhile, the company had posted a net loss of Rs 48.26 crore in the year-ago period, AFL said in a BSE filing.

It has reported a revenue of Rs 901 crore in the third quarter of FY 2021. The company registered 106 per cent Q-o-Q (quarter on quarter) revenue growth in Q3 FY 2021 whereas saw a decline of 14 per cent year on year basis. In Q3 FY20, the company reported a revenue of Rs 1,052 crore.

The company attributed the growth of revenue to stronger festive season and winter shopping, along with increased footfalls across the stores as the lockdown gradually lifted. This was further aided by continued traction in the online channel.

Shailesh Chaturvedi, MD and CEO of the company said, “AFL has emerged stronger from the pandemic crisis and I’m quite excited to lead our journey of providing enhanced customer experience. Our leadership positioning in the casual, denim and prestige beauty segment will enable AFL to pursue accelerated growth in the long term and create value for all our stakeholders.”

In addition, Arvind Fashions said its board has also approved issue of equity shares for an amount up to Rs 200 crore on rights basis.

“The board evaluated various options and was of the view that rights issue would be an equitable mode of fund raising as it gives its shareholders an equal opportunity to participate in the growth of the company.