Kewal Kiran Clothing announces results for Q3 FY’13 and YTD FY2012-13 (nine month’s period from April to December 2012).
• Factors contributing to increase in profitability
a. Increase in apparel sale volume by 14.42% YoY and realization per garments by 5.89% YoY.
b. Personnel cost and S & D expenses though increased in absolute amount but lower as a percentage of sales due to higher sales.
c. Reduction in administrative expenses by 0.95% of sales.
d. Opening of 17 retail stores during the quarter.
• Factors responsible for dampening profitability growth
a. Increase in cost of goods sold YOY by 0.28% due to higher volume of winter wear.
b. Staff Gratuity provision increased by Rs.39 lacs due to strengthening prudence in actuarial assumptions for escalation in staff salaries.
c. Closure of 4 retail stores.
Trend in Sales Q3 FY2012-13
• Sales value was up by 19.88%
• Apparel sales value was up by 21.16% to Rs 74.20 Crs
• Apparel sales quantity was up by 14.42%
• Apparel sales realization per unit was up by 5.89% to Rs 843
Trend in Sales YTD FY2012-13 (nine month’s period from April to December 2012)
• Sales value was down by 3.71%
• Apparel sales value was down by 0.99% to Rs 215.19 crores
• Apparel sales quantity was down by 6.66%
• Apparel sales realization per unit was up 6.08% to Rs 804
Key developments
• Company proposed a second interim dividend of Rs 6.5 per equity share. The first interim dividend was for Rs 7 per equity share.
• The Company has augmented “Business Progressive Fund” from Rs 5 Cr to Rs 7 Cr by appropriating a sum of Rs. 2 Cr out of its profits during the quarter to maintain normal growth in sluggish market conditions and support superior growth for long term.
Advertisement & Branding initiatives
-Integriti was the ‘Title sponsor’ and K-Lounge was ‘Associate Sponsor’ of the popular reality show “Integriti Presents Bindass Superdude” aired on UTV Bindass.
-A new campaign from the KILLER brand named as “Water Saver Jeans” was launched and advertised through 18 TV channels across India.
-In-stadia on ground hoardings on various brands for two cricket series between India England and India Pakistan.
Opened 17 new retail stores i.e. 6 K-Lounges, 7 Killer EBO, 4 Integriti stores. With this Company has presence in over 112 cities and 19 states across India.
Source:
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=121281
