MUMBAI, June 23: Arvind Mills has posted a turnover of Rs 863 crore during the year ended March 1997 against Rs 709 crore last year, recording a growth of 21 per cent. Exports for the year were Rs 405 crore (Rs 337 crore). The operating profit amounted to Rs 186 crore against Rs 103 crore, a rise of 81 per cent. Non-operating income declined to Rs 31 crore from Rs 63 crore.The net profit is Rs 127 crore against Rs 113 crore, after providing for extra-ordinary charges of Rs 12 crore against Rs 3 crore and MAT of Rs 5 crore (nil). The earning per share is Rs 12.70 against Rs 11.40. The dividend has been maintained at 45 per cent.

Commenting on the results, the managing director, Sanjay Lalbai said that the improved performance of the company should be viewed in the backdrop of general decline in corporate peformance.

With the expansion of denim capacity by 40 million meters, Arvind is now amongst the top three denim producers in the world with a production capacity of 120 million meters per annum. The new textile complex, comprising a cotton shirting plant and knit fabrics plant is well on schedule. Arvind is also setting up two captive co-generation power plants to achieve self-sufficiency in power. These new projects are estimated to cost Rs 1000 crore. Arvind recently completed an FRN issue of $ 125 million and with this has tied up all the required finance for these projects.

In the meantime, the proposal of amalgamation of Arvind Intex Ltd (AIL) with the Arvind Mills Ltd (AML) has been approved by the board. It has decided to make necessary application to the High court of Gujarat for its sanction to scheme.

Arvind Intex Ltd, a 49 per cent associate of Arvind Mills is proposed to be marged to achieve synergies of operations.Arvind Intex meets 40 per cent of the yarn requirements of Arvind's denim business.

The proposed amalgmation provides for vesting of all the assets, properties, rights etc of AIL in the AML and transfer of all liabilities and obligations of AIL to AML. The shareholders of AIL will be issued and allotted two equity shares of Rs 10 each fully paid-up of the Arvind Mills for every nine shares of Rs 10 each fully paid-up held by them in AIL.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.