Arvind Fashions Ltd (AFL) on Wednesday reported a consolidated net loss of Rs 65.62 crore in the third quarter ended December 31, 2020. The company had posted a net loss of Rs 48.26 crore in the year-ago period, AFL said in a BSE filing.

Its net sales during the period under review was at Rs 911.13 crore. It was Rs 1,062.28 crore in the year-ago period. Commenting on the results AFL MD and CEO J Suresh said with better than expected sales recovery through improved footfalls during the festival period which has resulted in significantly improved profitability and a cash breakeven for continuing business in Q3 FY21.

”Our focus on digital and omni-channel initiatives and a deep cost focus continue to deliver robust outcomes. At the back of strong Q3, we expect H2 FY21 to be significantly better in terms of sales & profitability growth, he added. Arvind Fashions said its board has also approved issue of equity shares for an amount up to Rs 200 crore on rights basis.

”The board evaluated various options and was of the view that rights issue would be an equitable mode of fundraising as it gives its shareholders an equal opportunity to participate in the growth of the company. ”The company intends to utilise the funds to meet its objectives of strengthening its balance sheet and for general corporate purposes, including working capital for growth,” the company added.

Shares of Arvind Fashions Ltd were trading 2.05 percent lower at Rs 146 apiece on BSE.