India's Arvind Fashions posts nearly 24% drop in quarterly profit on higher expenses
India's Arvind Fashions posts nearly 24% drop in quarterly profit on higher expenses July 21 (Reuters) - Indian retailer Arvind Fashions ARVF.NS posted a nearly 24% fall in first-quarter net profit on Tuesday, as expenses increased in a quarter marked by increases in raw material costs due to the Iran war.
The company, which sells clothing from brands including Arrow, Calvin Klein and Tommy Hilfiger, posted net profit from continuing and discontinued operations of 95.7 million rupees ($994,569.88), down from 125.7 million rupees a year ago.
Revenue from operations rose by 15.5% to 12.79 billion rupees, aided by higher marketing investments, the company said.
The company flagged the continuing West Asia conflict and the impact of El Nino on the monsoon as likely to drive inflationary pressure. It also said that increasing raw material costs and a weakening rupee will have impacts on capital expenditure.
Total expenses rose by 15% to 12.45 billion rupees.
Shares of the company fell by 3.4% after the results.
($1 = 96.2225 Indian rupees)
(Reporting by Abhirami G in Bengaluru)
((abhirami.g@thomsonreuters.com))
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