Kewal Kiran YoY growth slips by 18%

Wednesday, 01 August 2012

Kewal Kiran Clothing (KKCL) has registered a drop in its performance in the first quarter of the current financial year. Revenue for Q1 in 2012, was reported to be Rs 56.86 crores, as compared to Rs 69.33 crores for the same period in the last financial year, with a a fall of 18 per cent.

EBITDA margins declined sharply from 26 per cent in the previous quarter, Q4 (FY2011-12) to 17 per cent in Q1 (FY2012-13) due to a marginal increase in fixed costs and selling expenses for the company, coupled with steep revenue de-growth. Net profits for quarter ending June 30, 2012 were at Rs 7.27 crore, as compared to Rs 12.60 crores in the same period last year.

Meanwhile, in its report of July 24, 2012, CRISIL Research has maintained a fundamental grade of 4/5 owing to the company's established and known brands. The company has three big brands- Killer (casual wear), Lawman (fashion wear) and Integriti (casual wear).

KKCL has already reduced its disproportionate dependence on its flagship Killer brand and has been focussing the fashion wear offerings. At present, the company derives close to 50 per cent of its revenues from the Killer brand. In increasing its dependence on fashion wear offering, the company plans to emerge as a one-stop shop for fashion wear. Beside this, the company also has robust distribution channels which include multi-brand outlets and exclusive retail outlets. Through multi-brand outlets the company derives 58 per cent of its total revenues and has penetrated smaller cities.