Arvind, a Bengaluru-based textile company in India, has reported a drop in revenue for the fifth consecutive quarter. The decline in revenue can be attributed to lacklustre prices of woven products and lower demand for denim. The company’s consolidated revenue from operations fell by 4.6% to 18.8 billion rupees during the December quarter. The textile segment, which accounts for nearly 75% of total sales, experienced an 8% drop in revenue.

Arvind cited a slump in cotton prices as a reason for reducing product rates compared to the previous year. Additionally, the company highlighted a seasonal downtrend in volumes, which was linked to weak demand in the denim category. Arvind sells denim products under various brands such as U.S. Polo Association, Arrow, and Flying Machine.

The retail industry has been facing challenges due to subdued demand, as consumers reduce their spending amidst inflation. Arvind has observed a decline in revenue ranging from 11% to 21% over the past four quarters. However, the company managed to curb its expenses during the reported quarter, leading to a 9% rise in consolidated net profit.

Arvind is optimistic about the future and expects better volume growth across segments and healthy margins in the March quarter. However, the company’s exports in the advanced materials segment, which are used for making fabrics and protective gears for construction works, might be impacted by the restricted movement of Red Sea freight.

Following the news, Arvind’s shares initially hit a record high but later reversed course and traded as much as 2.6% lower. The company’s rival, Shoppers Stop, recently reported a fall in quarterly profit for the third consecutive time as consumers spent less on clothing and cosmetics. Trent, a company owned by the Tata Group, is scheduled to release its results next week.

In conclusion, Arvind’s revenue decline for the fifth consecutive quarter is primarily due to low prices of woven products and reduced demand for denim. However, the company managed to increase its consolidated net profit through expense reduction. Arvind expects improved performance in the next quarter with better volume growth and margins across segments.