India's textile manufacturer Arvind Ltd reported a 14% drop in quarterly revenue on Thursday hurt by weak demand in its key textile segment.
Consolidated revenue from operations fell to 18.81 billion rupees ($230.01 million) for the quarter ended March 31, from 21.97 billion rupees a year earlier.
Given the uncertain economic environment, Arvind expects its overall revenue growth to be muted in the medium term, it said in a statement.
The Ahmedabad-based company's net profit rose 17% to 970 million rupees, aided by a sharp drop in expenses.
Total expenses were down 13% in the quarter, with the cost of materials consumed falling 29% to 8.92 billion rupees.
The company's profit in its mainstay textiles division dropped 43%, while that in its advanced materials segment - that includes composites, industrials and human safety materials -increased 47%.
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The textile segment's denim revenue shrunk 46% as price realisation fell in tandem with cotton prices, while its garment revenue fell 25% with exports customers postponing purchases.
Arvind has also planned an investment program of around 6 billion rupees over the next two years to grow its advanced materials and garments businesses, the company said in the statement.
It reduced its net debt by 3.56 billion rupees to 13.27 billion rupees by the end of the last financial year. The company also approved an issue of non-convertible debentures worth up to 2 billion rupees.
It also declared a dividend of 5.75 rupees per share for the last financial year.
Shares of the company fell 2% after the results before reversing course to end the day 3.5% higher.
($1 = 81.7800 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; editing by Eileen Soreng)