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This is how 4 Indian apparel export stalwarts shone bright in Q2, H1

by Dheeraj Tagra

26-November-2018  |  6 mins read

KPR Mill Ltd
KPR Mill Ltd.’s garment revenue was up by 25.66 per cent during the quarter ended 30th September 2018

The four apparel export stalwarts of India performed pretty well in Q2 and H1. Not only sales of these big players have grown in double-digits, they have shown good profitability too. Apparel Resources conducted in-depth research in this regard covering all possible segments right from top-level to mid-level export houses in different product categories and catering to to various markets.

Some of the common reasons for the industry’s positivity include comparative increase in order flow from overseas market, currency benefit turning in favour of Indian exporters, comparatively less volatility in cotton prices and ‘stability’ in Government policies post demonetisation and GST.

KPR Mill Ltd., Coimbatore Kitex Garments, Kochi is strongly into knitted garments while Gokaldas Limited, Bangalore and Pearl Global Industries Ltd., Gurgaon are dedicated to woven garments. Both the segments have done well.

As far as market is concerned, Kitex Garments and Pearl Global Industries Ltd. is dedicated to the US market. GAP, Kohl’s, Macy’s are some of the major US-based clients for Pearl Global while Kitex caters mainly to Carters, Walmart, Amazon, Toys R Us, Kohl’s, Buy-Buy Baby, Ross Stores and Target. Gokaldas Limited is catering to the EU as well as the US and works with top players, while KPR Mills’ client-base is majorly into Europe.

KPR Mill Ltd.’s garment revenue was up by 25.66 per cent and net profit of the company increased by 30 per cent during the same period. For further growth, the company is planning to foray into the domestic retail market and is targeting the premium innerwear product segment. “Our new initiatives, unleashed recently, shall strengthen our growth opportunities in both the international as well as the domestic market,” stated KP Ramasamy, Chairman of the company.

Kitex Garments, known majorly for kidswear export and knitted garments manufacturing, performed well as the company’s sales during Q2 of FY 2018-19 rose by 12.95 per cent and net profit rose by 8.46 per cent.

Kitex Garments
Kitex Garments, known majorly for kidswear export and knitted garments manufacturing, performed well as the company’s sales during Q2 of FY 2018-19 rose by 12.95 per cent

Gokaldas Exports, which is 95 per cent into woven garments, also witnessed similar growth of 12.80 per cent in Q2 revenue. It is worth mentioning here that H1 of FY 2018-19 with EBITDA margins of 5 per cent showed a net profit of Rs. 5.6 crore as compared to net loss of Rs. 18.2 crore in H1 of FY 2017-18, thus underlining the good performance of woven based products.

Good performance of these players reiterates the perception that big players will be able to survive and grow in a difficult scenario. Good performance of these players reiterates the fact that big players can survive and grow in difficult scenario too. Besides, catering to niche products is another common thread among these players. Kitex Garments is totally dedicated to kidswear and KPR Mill does 30 per cent export of clothes of children. While workwear is the strength of Gokaldas Exports.

These results have indeed stood at par with the planning and expectations of the companies. As aptly said by Sabu M Jacob, MD, Kitex Garments, “The growth for Q2 is as per our expectation. We are happy that we are able to achieve what we had projected earlier.” Furthermore, these players are expecting more positive results as Sivaramkrishnan Ganapathi, MD, Gokaldas Exports commented, “Based on current order position, the company is set to deliver a healthy H2 in FY ’19 too, both in revenue growth and margins.”

Q 2 of 2018-19 reaps positive results
Sale in Cr. Net Profit in Cr.
Company Q2, 18-19 Q2, 17-18 Q2,18-19  Q2, 17-18 %
KPR Mill 613.18 487.98 25.66 82.26 63.19 30.17
Kitex Garments 167.85 148.61 12.95 26.16 24.12 8.46
Gokaldas Exports 294.07 260.69 12.8 1.51 -9.7
Pearl Global 455.2 334.69 36 2.84 -5.79

H1 Review

For KPR Mill Ltd., overall H1 revenue was up by 11.33 per cent Y-o-Y to Rs. 1,666.92 crore from Rs. 1,497.24 crore in the same period last year.

Kitex Garments’ total revenue for H1 ended September 2018 saw a growth of 11.1 per cent, standing at Rs. 313 crore, as compared to Rs. 282 crore a year ago. Its net profit for the same period has been Rs. 44.7 crore as compared to Rs. 42.08 crore a year ago.

Gokaldas Exports
Sivaramkrishnan Ganapathi, MD, Gokaldas Exports commented that based on current order position, the company is set to deliver a healthy H2 in FY ’19 too, both in revenue growth and margins

Gokaldas Exports noticed a growth of 16.16 per cent. In this period, its revenue from operation was Rs. 578.98 crore compared to Rs. 498.42 crore in the same period of FY 2017-18. On the profitability front, during the same period, it performed well as during first six months of current financial year, there was a profit of Rs. 5.57 crore against the loss of Rs. 17.72 crore during the same period last financial year

Pearl Global Industries Ltd. revenue for H1 ended September 2018 was Rs. 861.29 crore as compared to Rs 735.29 crore in the same period for previous year. The company grew by 17.31 per cent. While profit surged by 71. 6 per cent as it was Rs 16.67 crore for H1 ended September 2018 and Rs. 9.71 crore the same period for previous year.