Arvind has decided to demerge its branded apparel and engineering business from the parent Company.
The branded apparel business will be demerged into the entity Arvind Fashion Limited.
Shareholders of Arvind Ltd will be entitled for 1 equity share of Arvind Fashions Ltd for every 5 shares held by them.
The Engineering business will be demerged into an entity which will be named Anup Engineering. The business is engaged in the manufacturing of critical process equipment. Anup has been consistently growing at 25 percent and delivering a robust financial performance. Shareholders of Arvind Ltd will be entitled for 1 equity share of Anup Engineering Ltd for 27 shares held by them.
On completion of the process, both the companies will be listed on BSE and NSE.
The company also announced its results for the second quarter ended September 30, 2017.
The consolidated revenue for the quarter stood at Rs. 2,628 crores, registering a growth of 13% over the corresponding quarter of the previous year despite a challenging market due to GST implementation.
Consolidated EBIDTA declined 9% to Rs. 212 crores from
Rs. 232 crores in the corresponding quarter for the last year, primarily due to revenue challenges in domestic market and higher cotton prices on year on year basis.
Profit after Tax after Exceptional items,which consisted of retrenchment compensation, was Rs. 62 crores (down 14%) as
compared to Rs. 71 crore in corresponding quarter in previous financial year.
Jayesh Shah,Director & Chief Financial Officer said: “2nd quarter turned out to be another challenging quarter for the industry with GST implementation impacting our domestic textile business.”