Sales in consumer textiles division at SKNL grow by 21.4%
SKNL, a leading brand-led conglomerate involved in marketing and distributing high quality fabrics and ready-to-wear garments, has announced its results for the year ended 31 March, 2009.
Financial performance update: (All figures are consolidated unless stated otherwise)
FY2009 Financial results highlights:
• Net income from operations up 29.3% to Rs. 22,603.6 million from Rs. 17,486.5 million
• EBIDTA improves 20.9% to Rs. 4,880.9 million from Rs. 4,037.9 million
• Net profit before minority interest at Rs. 1,951.4 million
• EPS post minority interest of Rs 8.06
SKNL: FY2009 Details to Results Announcement
SKNL has been successful in delivering a healthy result in weak market conditions demonstrating the soundness and diversity of its business model. The Company has paid great emphasis on distribution and marketing lead operations which have proven to be remunerative even in these variable times. Through dedicated focus on brand building, SKNL has developed leading brands that cater to all socio-economic segments of the Indian consumers. The brands under the SKNL umbrella include Reid & Taylor, Belmonte, Carmichael House and S. Kumars. All these brands are amongst the top brands in their respective segments.
Financial Performance Review
(SKNL results that are being reviewed are consolidated with Reid and Taylor India Limited (RTIL) and SKNL International B.V., Netherlands) Revenues
In the financial year under review, SKNL's net sales grew 29.3% to Rs. 22,603.6 million from Rs. 17,486.5 million. This growth in sales was driven by volume enhancement across brands. Sales for the luxury textile segment, which comes under Reid and Taylor fabrics, grew by about 33.4%. Ready-to-wear garments contributed strongly with a 49.1% increase in sales over the corresponding period last year.
Driven also by volume expansion across product categories, sales in the consumer textiles division grew by over 21.4%. Starting October 1, 2008 the financial performance of Leggiuno has also been consolidated in the Company's results. This contributed to the enhancement of revenues in FY2009. Legguino's contribution in the total sales of the Company was Rs. 598 million.
Increase in sales volumes, despite weak consumer sentiment prevailing currently, can be attributed to the strong recall commanded by SKNL brands.
Total expenditure in the period under review, excluding depreciation, increased by 31.9% to Rs. 17,881.4 million from Rs. 13,553.6 million. Increase in total expenditure can be largely linked to an increase in scale of the Company's operations across its business divisions. In FY2009, consumption of raw material increased by 29.4% to Rs. 14,610.2 million from Rs. 11,286.4 million in the last year. Even though FY2009 has been a variable and challenging year SKNL has been successful in maintaining its raw material cost as a percentage of net sales to approximately 64.5% in FY2009, this figure was the same in FY2008.