Kewal Kiran Clothing sales up 19.88% in Q3 FY'13

19 Feb '13

2 min read

Kewal Kiran Clothing announces results for Q3 FY’13 and YTD FY2012-13 (nine month’s period from April to December 2012).

• Factors contributing to increase in profitability

a. Increase in apparel sale volume by 14.42% YoY and realization per garments by 5.89% YoY.

b. Personnel cost and S & D expenses though increased in absolute amount but lower as a percentage of sales due to higher sales.

c. Reduction in administrative expenses by 0.95% of sales.

d. Opening of 17 retail stores during the quarter.

• Factors responsible for dampening profitability growth

a. Increase in cost of goods sold YOY by 0.28% due to higher volume of winter wear.

b. Staff Gratuity provision increased by Rs.39 lacs due to strengthening prudence in actuarial assumptions for escalation in staff salaries.

c. Closure of 4 retail stores.

Trend in Sales Q3 FY2012-13

• Sales value was up by 19.88%

• Apparel sales value was up by 21.16% to Rs 74.20 Crs

• Apparel sales quantity was up by 14.42%

• Apparel sales realization per unit was up by 5.89% to Rs 843

Trend in Sales YTD FY2012-13 (nine month’s period from April to December 2012)

• Sales value was down by 3.71%

• Apparel sales value was down by 0.99% to Rs 215.19 crores

• Apparel sales quantity was down by 6.66%

• Apparel sales realization per unit was up 6.08% to Rs 804

Key developments

• Company proposed a second interim dividend of Rs 6.5 per equity share. The first interim dividend was for Rs 7 per equity share.

• The Company has augmented “Business Progressive Fund” from Rs 5 Cr to Rs 7 Cr by appropriating a sum of Rs. 2 Cr out of its profits during the quarter to maintain normal growth in sluggish market conditions and support superior growth for long term.

Advertisement & Branding initiatives

-Integriti was the ‘Title sponsor’ and K-Lounge was ‘Associate Sponsor’ of the popular reality show “Integriti Presents Bindass Superdude” aired on UTV Bindass.

-A new campaign from the KILLER brand named as “Water Saver Jeans” was launched and advertised through 18 TV channels across India.

-In-stadia on ground hoardings on various brands for two cricket series between India England and India Pakistan.

Opened 17 new retail stores i.e. 6 K-Lounges, 7 Killer EBO, 4 Integriti stores. With this Company has presence in over 112 cities and 19 states across India.

Kewal Kiran Clothing

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