S.Kumars' luxury textile segment grows

31 May '10

5 min read

EBIDTA during the year stood at Rs. 7,734 million compared to Rs. 4,881 million, an increase of 58.5%. EBIDTA Margins for the year under review stood approximately at 20.0%. Although operating margins seems to be dampened compared to 21.4% delivered in FY2009, it is important to point out that the domestic margins have improved to 24.3% from 22.0% during last year. Overseas EBIDTA margins currently are 1.4% which is in line with the planned estimates. With initiatives such as re-energised customer and vendors relations, reducing operating expenses, improving capacity utilization and integration efforts underway; we are very confident that in the coming year we will have significant contribution from these businesses.

Commenting on the performance for FY2010 Mr. Nitin S. Kasliwal, Managing Director and Vice Chairman of SKNL said,

“Our performance during the year showcases our dedication towards achieving excellence in all spheres of operations. It has forever been our endeavour to target all economic strata's of the society. This customer centric approach has reaped us huge benefits over the years and we expect the same to continue in the years to come. While our domestic business continues to grow well, our international business too shows huge potential with our various acquisitions.

Although we recognize the tremendous potential of the domestic market, we would also continue to focus on enhancing our international operations through back end and front end synergies. A significant step in this regard is our international acquisition of the HMX Corp. which has amplified our brand portfolio significantly. With this acquisition the garment mix has increased considerably during the year and is expected to increase further in FY2011. Going forward this acquisition would provide us with various avenues in the US market. Also, we recently signed joint venture agreement with Dona Karan International to design, source, produce and distribute the full range of DKNY men's apparel globally (except Japan) which presents substantial growth opportunities in the apparel domain globally. Our performance now truly demonstrates that we are making sustained progress on our vision of being a well-established global player in the branded apparel segment”

S. Kumars Nationwide Ltd. (SKNL)

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