During the quarter ended, the company completed the demerger of its Brands & Retail business to separate 100 % owned subsidiary companies, effective 01 April 2009. Excluding the figures of now demerged brands & retail businesses, the revenue for the quarter are up by 25% at Rs.6 bn as against Rs.4.79 bn in the corresponding quarter of the previous year. At the operating level, EBIDTA increased by 44 % at Rs.840 mn as against Rs.580 mn for the corresponding quarter of the previous year. Under review, the Denim fabrics session registered a growth of 25% in volumes over the corresponding quarter of previous year, following 17% growth in export volume and 31% growth in domestic volume because of company's aggressive market share acquisition plan in domestic market with the domestic volume now constituting 52% of the total volume of denim fabric.

As far as shirting fabric of the brand is concerned, the twin approach of product differentiation & price competitiveness has led to 35 % growth in the domestic branded apparel and retail market. The brand has set-up 500 shop-in-shop counters for retaining functional & performance fabrics called "intellifabrix" across the country. The brand & its retail businesses also grew by 24 % during the quarter.

SKNL, (S Kumars Nationwide Ltd) a leading brand-led conglomerate involved in design, marketing and distribution of high quality fabrics and ready-to-wear garments also reported a strong growth in operating profits in its international operations that were offset by tough market conditions and start-up losses in its India and China business. SKNL demonstrated an ability to deliver improving and sustained performances through variable and often challenging environments demonstrating the strength and diversity of its business model, its net sales, driven by volume enhancement across product offerings grew 69.7% to Rs 951.4 crores from Rs.560.5 crores. Revenues have also been positively affected by a Rs.243.5 crores sales contribution from its overseas operations. EBIDTA for the quarter stood at Rs.183.2 crores compared to Rs.1,33.3 crores, an increase of 37.5%. Margins for the quarter under review stood approximately at 19.2%. In 02 FY2010, PBT increased to Rs.100.1 crores versus Rs.89.1 crores in the corresponding period last year. Net profit after minority interest for the period under review stood at Rs.58.4 crores compared to Rs.57.8 crores.

Hartmarx is also EBIDTA positive, though this is first quarter of the acquisition. The retail group today reported an international operating profit before property disposals at 65.9 million. SKNL now has access to a whole array of leading international brands including Hickey Freeman, Bobby Jones, Hart Schaffner Marx, Exclusively Misook, Austin Reed amongst others. For the rest of this year, the brand expects to progressively improve its performance led by increased festive season sales, higher consumer confidence, and efficient cost management.

Originally published in "Inside Fashion: The Magazine on Fashion & Retailing;" Vol 9: No. 8