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Kitex Garments: Looking to pare debt, capitalize on brands - Views on News from Equitymaster
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  • May 2, 2016 - Kitex Garments: Looking to pare debt, capitalize on brands

Kitex Garments: Looking to pare debt, capitalize on brands
May 2, 2016

Kitex Garments announced the results for fourth quarter of financial year 2015-2016 (4QFY16). The topline grew by 16.6% for the fourth quarter and by 4.2% for the full year. Profits grew by 7.8% YoY and 13.8% YoY respectively in 4QFY16 and FY16. Here is our analysis of the results.

Performance summary
  • Sales grew by 4.2% in FY16 backed by 14.6% YoY in garment revenues.
  • Operating margins remained stable at 28% over the past year primarily due to rise lower input costs.
  • Higher other income helped net profits go up by 13.8% YoY in FY16.

    Financial snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Total income 1,476 1,722 16.7% 4,790 4,992 4.2%
    Expenditure 921 1,150 24.9% 3,423 3,595 5.0%
    Operating profit (EBDITA) 555 572 3.1% 1,367 1,397 2.2%
    Operating profit margin (%) 37.7% 33.2% 28.5% 28.0%
    Other income 109 138 26.6% 455 663 45.7%
    Interest 49 4 -91.8% 192 137 -28.6%
    Depreciation 58 48 -17.2% 213 213 0.0%
    Profit before tax 557 658 18.1% 1,417 1,710 20.7%
    Tax 142 210 47.9% 431 589 36.7%
    Profit after tax/(loss) 415 448 8.0% 986 1,121 13.7%
    Net profit margin (%) 28.1% 26.0% 20.6% 22.5%
    No. of shares (m)# 47.5
    Diluted earnings per share (Rs) 23.6
    P/E ratio (x) * 19.5

    *Based on trailing 12 month earnings

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