May '10
Financial performance highlights FY 2010: (All figures are consolidated unless stated otherwise)
• Net income from operations enhances by 69.6% to Rs. 38,609 million from Rs 22,762 million
• EBIDTA increases 58.5% to Rs. 7,734 million from Rs. 4,881 million
• Net profit (before minority interest) up 42.1% to Rs. 2,773 million compared to Rs. 1,951 million
• Net Profit after minority interest at Rs. 2,290 million
• Basic EPS after minority interest at Rs. 9.68
Operational Performance Highlights FY 2010:
• Domestic businesses deliver robust revenue and margin growth
• HMX business turns EBIDTA positive
• Entered into Joint Venture with DKNY for the global menswear licence of the DKNY brand
• Changing product mix in favour of garments, which is lean on working capital
o FY 2009 Garment to Fabric ratio was 11:89
o FY 2010 Garment to Fabric ratio is 25:75
• Ongoing process of achieving back end and front end synergies with international businesses
SKNL has delivered positive financial and operating results for FY2010. The company's focus to cater to all socio economic segments along with capabilities of creating diversified brand portfolio has made it possible to achieve such a buoyant result. Despite the economic slowdown the company was focused to strengthen its brand and product portfolio. Adverse economic conditions made the company rework its strategies and strengthen execution in areas of branding, designing, marketing and distribution-led activities. Domestically, the Company has a strong set of brands catering to all socio-economic segments in the branded garment and fabric space. Internationally, with the recent acquisition of Hartmarx (now HMX Corp.), the largest men's tailored clothing Company in America, SKNL now has access to an array of leading international brands including Hickey Freeman, Bobby Jones, Hart Schaffner Marx, Exclusively Misook, Austin Reed, Monarchy amongst others.
In the financial year under review, SKNL's net sales grew 69.6% to Rs. 38,609 million from Rs. 22,762 million. This growth in sales was driven by volume enhancement across brands. Starting August 7, 2009 the financial performance of HMX has also been consolidated in the Company's results. This contributed to the enhancement of revenues in FY2010. Overseas subsidiaries contribution in the total sales of the Company was Rs 7,144 million. Sales for the luxury textile segment, which comes under Reid and Taylor fabrics, grew by about 41.5%. Ready-to-wear garments contributed strongly with a 58.8% increase in sales over the last year. This healthy improvement in garment sales was driven by volume increment in Reid & Taylor and Belmonte brands. Driven also by volume expansion across product categories, sales in the consumer textiles division grew by over 45.9%. Baruche Superfine Cotton - 12.75 million meters per annum state-of-the-art BSFC facility is stabilized. Sales in the BSFC division are poised to grow as Core product lines are synergised through Backward-forward integration strategy with Leggiuno, Italy.
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