K.P.R. Mill (KPRMILL) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue reached ₹2,402.06 crore and net profit ₹141.68 crore, with growth across textile operations and the first full year of sugar operations.

• Export sales were ₹658.44 crore, roughly 30% of consolidated turnover; garment capacity expansion was launched to capture stronger export demand.

Financial highlights

• Consolidated revenue ₹2,402.06 crore vs ₹1,670.40 crore YoY; PBDIT ₹453.27 crore vs ₹393.03 crore.

• Consolidated PBT ₹192.07 crore vs ₹144.07 crore; PAT ₹141.68 crore vs ₹103.01 crore.

• Consolidated sales and other income were ₹2,402.06 crore; export sales were ₹658.44 crore vs ₹433.68 crore, and domestic sales ₹1,652.08 crore vs ₹1,192.25 crore.

• Standalone PAT was ₹130.56 crore vs ₹100.76 crore; standalone EPS ₹34.32 vs ₹26.41.

• Consolidated cash flow from operations was ₹452.03 crore; cash and cash equivalents at year-end were ₹99.16 crore.

Outlook and guidance

• FY15 garment capacity additions comprise 10 million pieces at the existing facility, expected in Q1, and a new 12 million-piece facility, expected in Q4; total garment operations to expand by over 50% in two years.

• Garments are expected to drive margins; yarn operations aim to maintain prior profitability levels amid sluggish export demand.

• Management expected stronger performance from rising global demand, domestic consumption, stable cotton prices, improved sugar realizations, broader clientele and process efficiencies.