X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Kitex Garments: Capacity Expansion On the Cards - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Kitex Garments: Capacity Expansion On the Cards
Feb 1, 2017

Kitex Garments announced the results for third quarter of financial year 2016-2017 (3QFY17). The topline remained flat while profits fell by 2.5% YoY in 9mFY17. Here is our analysis of the results.

Performance summary
  • Sales recovered sharply in the third quarter, growing by 16% YoY. However for the nine month period sales almost remained flat. According to the management, the impending US elections had been the key reason for postponement of orders in first half of the fiscal.
  • The fall in other income in 9mFY17 was due to forex losses.
  • Operating margins dropped to 22.6% in 9mFY17 from 25.3% in 9mFY16 due to pressure on realisations. Despite lower interest costs, net profits fell by 2.5% YoY in 9mFY17.

    Financial snapshot
    (Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
    Total income 1,099 1,275 16.0% 3,271 3,283 0.4%
    Expenditure 765 938 22.6% 2,445 2,542 4.0%
    Operating profit (EBDITA) 334 337 0.9% 826 741 -10.3%
    Operating profit margin (%) 30.4% 26.4% 25.3% 22.6%
    Other income 136 217 59.6% 525 500 -4.8%
    Interest 42 23 -45.2% 134 68 -49.3%
    Depreciation 55 51 -7.3% 165 153 -7.3%
    Profit before tax 373 480 28.7% 1,052 1,020 -3.0%
    Tax 132 162 22.7% 379 364 -4.0%
    Profit after tax/(loss) 241 318 32.0% 673 656 -2.5%
    Net profit margin (%) 21.9% 24.9% 20.6% 20.0%
    No. of shares (m)# 47.5
    Diluted earnings per share (Rs) 23.2
    P/E ratio (x) * 19.3
    *Based on trailing 12 month earnings
To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

KITEX GARMENTS SHARE PRICE


Oct 19, 2017 07:33 PM

TRACK KITEX GARMENTS

  • Track your investment in KITEX GARMENTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON KITEX GARMENTS

KITEX GARMENTS 5-YR ANALYSIS

Detailed Financial Information With Charts

COMPARE KITEX GARMENTS WITH

MARKET STATS