Kitex Garments hits 52 week low after poor results

The second largest producer of children's apparel in the world Kitex Garments (Kitex) announced its quarterly results on Monday. The company which is engaged in textiles business, reported an increase of just 4 per cent year on year (YoY) in net profit due to lower sales.

On financial front, the consolidated net revenue from operations of Kitex reached Rs 118 crores in Q3FY16 compared to Rs 122 crores in Q3FY15, a decrease of 3.25 per cent YoY. EBITDA stood at Rs 41.67 crores this quarter compared to Rs 41.92 crores in Q3FY15, a decrease of 0.60 per cent YoY. The EBITDA margin of company stood at 35.27 per cent this quarter compared to 34.33 per cent in Q3FY15. The total expenses of company stood at Rs 76.46 crores compared to Rs 80.18 crores in Q3FY15, a decrease of 4.64 per cent YoY. Net profit stood at Rs 24.07 crores in Q3FY16 compared to Rs 23.13 crores in Q3FY15, an increase of 4.06 per cent YoY. The net profit margin stood at 20.38 per cent compared to 18.94 per cent in Q3FY15. 

The nine month ending consolidated net revenue from operations increased by 2.38 per cent and reached Rs 361 crores compared to Rs 353 crores for the same period last year. Net profit for nine month period stands at Rs 67.19 crores compared to Rs 57 crores, an increase of 18.11 per cent for the same period last year.

Segment wise the total revenue of Kitex from Garments decreased by 5.80 per cent to Rs 105 crores in Q3FY16, from Rs 112 crores in Q3FY15. Revenue from Fabrics also decreased by 18 per cent to Rs 46.66 crores, from Rs 57 crores in Q3FY15.

With unmatched global connections, this company caters to prominent and renowned conglomerates in USA and Europe. It is now in the process of setting up operations in the USA. After the results the stock hit a 52 week low of Rs 427.70 on Wednesday due to heavy selling. The stock is currently trading at Rs 437, a decrease of 7.03 per cent from previous close.