K.P.R. Mill (KPRMILL) Q4 14/15 earnings summary

Executive summary

• Consolidated FY2014-15 revenue reached ₹258,979 lakh and net profit ₹17,357 lakh, with growth led by garments and expansion of apparel capacity.

• Textile operations remained exposed to falling yarn realizations and higher power and labour costs; captive green power and increased garment production helped mitigate pressure.

Financial highlights

• Consolidated revenue was ₹258,979 lakh vs ₹240,206 lakh; PBDIT was ₹46,134 lakh vs ₹45,327 lakh YoY.

• Consolidated PBT was ₹22,338 lakh vs ₹19,207 lakh; PAT was ₹17,357 lakh vs ₹14,168 lakh YoY.

• Consolidated finance costs fell to ₹8,394 lakh from ₹10,450 lakh; depreciation was ₹15,402 lakh vs ₹15,670 lakh.

• Standalone cash profit was ₹272 crore vs ₹260 crore; cash EPS was ₹72 vs ₹69.

Outlook and guidance

• A further greenfield facility adding 36 million garments p.a. was approved at estimated cost of ₹175 crore; completion was expected during FY2015-16.

• Garment capacity had increased from 37 million to 59 million pieces p.a.; added capacity was backed by firm orders and expected to reach full operation in FY2015-16.

• Management expected stable spinning-industry conditions and continued growth in garments, supported by expanded capacity and demand from existing buyers and the U.S. market.