K.P.R. Mill (KPRMILL) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue rose 12.54% to ₹3,421 crore; EBITDA increased 10.04% to ₹649 crore, PBT 17.72% to ₹469 crore and PAT 15.32% to ₹335 crore.

• Growth reflected higher volumes across segments and expanded garment operations; garment production rose 20.20% to 94.19 million pieces.

• Standalone turnover was ₹3,016 crore and PAT ₹289 crore; consolidated revenue was ₹3,421 crore and PAT ₹335 crore.

Financial highlights

• Consolidated revenue from operations was ₹3,384 crore versus ₹3,025 crore; total revenue was ₹3,421 crore versus ₹3,040 crore in FY18.

• Consolidated PBT reached ₹469 crore versus ₹398 crore; PAT was ₹335 crore versus ₹290 crore.

• Standalone revenue from operations was ₹2,979 crore versus ₹2,512 crore; PBT was ₹413 crore versus ₹310 crore and PAT ₹289 crore versus ₹225 crore.

• Consolidated operating cash flow fell to ₹66 crore from ₹226 crore, mainly alongside larger inventory and receivables outflows; closing cash was ₹64 crore.

Outlook and guidance

• Expanded garment capacity is expected to improve output and returns; the 10-million-piece Ethiopia facility was ramping in phases, with full-fledged operations expected during FY20.

• A ₹120 crore, 90 KLPD ethanol plant was in progress, with production expected from the 2019-20 sugar season to add value and reduce sugar-business volatility.

• FASO retail rollout was planned across South India by Aug 2019, followed by a broader national presence in 2020; retail was expected to contribute during FY20.

• Management expected textile-sector growth from domestic demand and rising exports, supported by reimbursement of embedded taxes and reduced disruption from GST and demonetization.