House of Pearl Fashions Limited (HOPFL), a multinational, ready-towear apparel Company operating in three distinct business streams: manufacturing, marketing & distribution and sourcing of garments, has reported consolidated total revenues of Rs.549.54 Crores for Half year ended 30th September 2007, an increase of 22.66% over the corresponding period last fiscal.
The net profit stood at Rs.29.36 Crores, an increase of 13.70% from Rs.25.82 Crores in first half of FY06-07. The EPS for the first half of the fiscal at Rs.14.98.
Despite sharp appreciation of Indian Rupee over last six months and also increase in minimum wages by 41% in Haryana, India, the Company was able to maintain its net profit in line with first quarter and in fact the PAT to sale ratio improved.
This was made possible because of unique international business model, which has helped it cover up for the losses due to dollar weakness in Indian operations due to its natural hedge in other countries.
The Company is planning a tie-up with European Brand “Lerros” subject to requisite approvals for its retail venture in India. HOPFL will hold 60% equity in the SPV, which will be set up for the retail foray.
Lerros will hold 40% equity. Initially, the Company will open ten stores in the National Capital Region and gradually increase the number of stores to 300 spread throughout India over a period of three years.
The Company also has its own brand in USA, viz; DCC and Kool Hearts. It plans to combine its branding / designing experience with sourcing knowledge to make a success of their foray in retail in India.
HOPFL also recently won the best Corporate Social Responsibility award from JC penny, one of its main customers. The company has a diverse customer-base and is serving over 90 retailers across the Globe.
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House of Pearl Fashions Limited