Date:28/04/2005 URL: http://www.thehindubusinessline.com/2005/04/28/stories/2005042802730200.htm

Back Arvind Mills Q4 net doubles to Rs 53 cr

Our Bureau

Mumbai , April 27

ARVIND Mills Ltd has posted a net profit of Rs 53 crore for the fourth quarter ended March 31, registering a 109 per cent rise from Rs 25 crore a year ago. Net sales for the period stood at Rs 445 crore, up 28 per cent from Rs 348 crore.

The net profit for the financial year was Rs 127.35 crore, up 31 per cent from Rs 97 crore last year even as sales were Rs 1,678.86 crore, up 17 per cent from Rs 1,435.28 crore. A dividend of Re 1 for every share was announced.

The company's share price on Wednesday fell from Rs 128.15 to Rs 122.25.

Mr Sanjay Lalbhai, Managing Director, told newspersons here on Wednesday that the company is going in for 100 new powerlooms by June through the vendor route. Of this, 60 looms will go the 10-million denim facility that is being created with in-house manufacturing coming in only yarn capacities. "The strategy is to ensure a flexible capacity with minimum leveraging of the balance sheet," Mr Lalbhai said.

The 100 powerlooms are being commissioned at a cost of Rs 80 crore with vendors given a buyback option for one year and the first right of refusal thereafter.

Arvind Mills proposes to raise capital by way of issuing GDR of up to 14 million equity shares amounting to $40 million, constituting up to seven per cent of the company's equity base.