Indian textile firms report mixed performance in Q1 FY25

Indian textile companies have shown varied performance in the first quarter of fiscal 2025 (Q1 FY25), reflecting a combination of robust growth, modest increases, and slight declines in their financial metrics. Leading players such as PDS Limited, Trident Ltd, Arvind Limited, and Welspun Living Ltd have reported their quarterly results, offering insights into the industry's current state.

PDS Limited

India's PDS Limited reported a substantial rise in revenue, reaching ₹26.21 billion (approximately $313.19 million) in Q1 FY25, up 24 per cent from ₹21.15 billion in the same period last year. The company registered a gross merchandise value (GMV) of ₹38.98 billion (approximately $465.5 million) in Q1 FY25. This represents a robust 28 per cent year-over-year increase from ₹30.43 billion in Q1 FY24.

The company's gross profit experienced an impressive 38 per cent growth, climbing to ₹5.45 billion in Q1 FY25 from ₹3.95 billion in Q1 FY24. Furthermore, PDS Limited's profit after tax (PAT) increased by 34 per cent, amounting to ₹310 million in Q1 FY25 compared to ₹230 million in the previous year's first quarter. This strong performance highlights PDS Limited's ability to capitalise on market opportunities and expand its operations effectively.

Trident Ltd

Trident Ltd, a significant player in the Indian textiles industry, reported a 16.66 per cent increase in revenue from operations, reaching ₹17.42 billion (approximately $208.06 million) in Q1 FY25, compared to ₹14.93 billion in the same period last year. The total income for Trident in the June quarter was reported at ₹17.57 billion, marking a 16.77 per cent increase from ₹15.05 billion a year earlier.

However, the company's total expenses rose by 19.7 per cent, amounting to ₹16.55 billion. This increase in expenses suggests that Trident may be facing higher costs in production and operations, which could impact its profitability in the coming quarters.

Arvind Limited

Indian textile manufacturer Arvind Limited reported an overall revenue of ₹18.31 billion (approximately $218.6 million) in Q1 FY25, registering a slight decline of 1 per cent from the previous year. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹1.5 billion, reflecting a 17 per cent decrease compared to the previous year.

The EBITDA margin dropped by 1.5 per cent to 8.2 per cent. Profit after tax for the quarter aligned with the revenue, amounting to ₹390 million. Arvind's performance indicates challenges in maintaining its profitability and operational efficiency in a competitive market.

Welspun Living Ltd

Welspun Living Ltd reported mixed results for Q1 FY25. The company's revenue increased significantly to ₹21.70 billion (approximately $259.27 million) from ₹17.02 billion in Q1 FY24. Despite this substantial revenue growth, net profit decreased to ₹1.45 billion from ₹1.55 billion in the previous year.

The earnings per share (EPS) dropped to 1.51 from 1.60, and the operating profit margin (OPM) fell to 13.36 per cent from 16.42 per cent. The net profit margin (NPM) also declined to 6.69 per cent from 9.13 per cent.

Fibre2Fashion News Desk (DP)