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  • Aug 10, 2016 - Kitex Garments: New Client Acquisitions To Aid Growth

Kitex Garments: New Client Acquisitions To Aid Growth
Aug 10, 2016

Kitex Garments announced the results for first quarter of financial year 2016-2017 (1QFY17). The topline grew by 8.8% and profits grew by 30% YoY in 1QFY17. Here is our analysis of the results.

Performance summary
  • Sales grew by 8.8% in FY16 backed by growth in garment and fabric revenues.
  • Operating margins improved to 8.9% over the past year primarily due to rise lower input costs.
  • Lower interest costs helped net profits go up by 30% YoY in 1QFY17.

    Financial Snapshot
    (Rs m) 1QFY16 1QFY17 Change
    Total income 968 1,053 8.8%
    Expenditure 789 854 8.2%
    Operating profit (EBDITA) 179 199 11.2%
    Operating profit margin (%) 18.5% 18.9%
    Other income 182 201 10.4%
    Interest 48 26 -45.8%
    Depreciation 55 51 -7.3%
    Profit before tax 258 323 25.2%
    Tax 98 115 17.3%
    Profit after tax/(loss) 160 208 30.0%
    Net profit margin (%) 16.5% 19.8%
    No. of shares (m)# 47.5
    Diluted earnings per share (Rs) 24.6
    P/E ratio (x) * 19.2

    *Based on trailing 12 month earnings

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