"We delivered a decent performance in a difficult market. FY23 was challenging due to inflation in some of our key markets" Punit Lalbhai, Arvind Ltd said in an interaction with CNBC-TV18 on May 19. He adds that discretionary spending is low and inventories had piled up last year. However, these inventories are now reducing. Lalbhai said he expects a muted demand and has a cautious outlook for next few quarters. "The traditional textile business is under pressure".

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Arvind Ltd, on May 18, declared results for the fourth quarter of financial year 2022-23. Largely led by weak segmental performance in textiles, Arvind Ltd's consolidated revenues declined 15 percent to Rs 1,881 crore, while gross profit margins fell to 50 percent versus 52 percent in the same quarter of last year. This was driven by lower price realisation and volumes. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 20 percent to Rs 191 crore, while EBITDA margin was 70 bps lower at 10.1 percent versus 10.8 percent in corresponding quarter of last year. Net profits improved 3 percent to Rs 92 crore, led by 61 percent lower tax expenses in the fourth quarter.

The textile segment, which contributes majority part of of Arvind Ltd's top line, witnessed its revenues declining 22 percent to Rs 1,431 crore, while margins lowered 250 bps to 6.3 percent. The advanced material segment revenues were 20 percent higher at Rs 338 crore and margins nearly doubled to 13 percent versus 7.6 percent in same quarter of last year.

Lalbhai, while interacting with CNBC-TV18 said there is progress in the advanced materials business and is expected to contribute higher in the company's overall business.

Any uptick in business is not expected before the second half of FY24. Initial two quarters of FY24 are expected to be dull although sequential growth is expected. The advanced materials division is expected to grow above 20 percent in FY24 clocking healthy margins.

The long term debt has reduced to Rs 378 crore in FY23 from Rs 758 crore in FY22. The company is comfortable at current levels of debt and capex shall be funded using internal accruals.

Arvind Ltd stock ended May 18 with 6 percent gains and 36 percent up move since the start of calendar year 2023.

Arvind Ltd is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments.