K.P.R. Mill (KPRMILL) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue was ₹3,389.09 crore, PBT ₹471.67 crore and PAT ₹376.68 crore; revenue and PBT were below FY19, while PAT rose from ₹334.87 crore.

• COVID-19 restrictions affected Q4 operations; performance also faced weak yarn demand, slower garment exports and an inventory write-down.

• Garment output rose ~5% YoY to 98.67 million pieces; retail brand FASO launched and ethanol production began.

Financial highlights

• Consolidated revenue from operations was ₹3,352.63 crore versus ₹3,384.01 crore in FY19; total revenue was ₹3,389.09 crore versus ₹3,420.91 crore.

• Consolidated EBITDA/PBDIT was ₹658.41 crore versus ₹648.65 crore; PBT was ₹471.67 crore versus ₹468.58 crore.

• Consolidated PAT was ₹376.68 crore versus ₹334.87 crore; basic and diluted EPS was ₹52.90 versus ₹46.12.

• Standalone revenue was ₹2,934.53 crore and PAT ₹294.61 crore, versus ₹3,015.90 crore and ₹289.11 crore in FY19.

• Operating cash flow was ₹788.28 crore consolidated and ₹757.32 crore standalone; closing cash and equivalents were ₹151.81 crore and ₹145.33 crore, respectively.

Outlook and guidance

• FY21 financial results are expected to be affected by lockdown-related disruption; operations resumed partially from 6 May 2020 and were gradually ramping up.

• Management expects ethanol commercial operations to be full-fledged in FY21 and plans Pan-India FASO distribution subject to COVID-related market conditions.

• Recovery is expected to be gradual; management sees potential for India to gain apparel sourcing as global buyers diversify from China.