K.P.R. Mill (KPRMILL) Q4 17/18 earnings summary

Executive summary

• Consolidated revenue reached ₹303,862 lakh, with PAT of ₹29,038 lakh; garment output grew 27% YoY to 78.36 million pieces despite GST disruption and cotton-price volatility.

• Expansion in garmenting and processing began contributing; an additional 36-million-piece garment unit was completed, with full benefits expected in FY19.

Financial highlights

• Consolidated revenue ₹303,862 lakh vs ₹284,409 lakh; PBDIT ₹58,943 lakh vs ₹59,074 lakh; PBT ₹39,802 lakh vs ₹37,690 lakh; PAT ₹29,038 lakh vs ₹28,682 lakh.

• Consolidated basic and diluted EPS was ₹39.30 vs ₹38.17; total comprehensive income was ₹29,068 lakh vs ₹28,697 lakh.

• Standalone revenue was ₹252,659 lakh vs ₹224,626 lakh, with 12% growth reported; PBT was ₹30,956 lakh vs ₹31,031 lakh and PAT ₹22,497 lakh vs ₹23,842 lakh.

• Standalone revenue from operations was ₹251,152 lakh vs ₹221,914 lakh; basic and diluted EPS was ₹30.44 vs ₹31.71.

• Consolidated operating cash flow was ₹22,598 lakh vs ₹47,705 lakh; capex including capital advances was ₹4,325 lakh vs ₹19,918 lakh.

Outlook and guidance

• Full benefits from the expanded garment and processing capacity were expected in FY19; garment-buyer support and order levels were described as strong.

• FY19 outlook anticipated cotton prices remaining firm initially, with possible margin expansion from softer cotton prices, improving demand and better consumer spending.

• A maiden overseas apparel investment was proposed at Mekelle Industrial Park, Ethiopia, through a planned subsidiary; initial discussions with authorities were underway.

• Domestic retail plans targeted premium innerwear; preparatory work had begun, with launch plans to follow finalization.