- 28 Jan 2022
- ICICIdirect Research
KEWAL KIRAN CLOTHING REPORTS IMPROVED OPERATIONAL PERFORMANCE
KKCL - 624 Change: 0.00 (0.00 %)News: KKCL reported strong revenue recovery and registered its highest ever quarterly revenues in Q3. Revenue for Q3FY22 increased 45% YoY to Rs.171.4 crore (QoQ decline of 2%). The revenue for Q3FY22 has surpassed the pre-Covid revenue of Rs.126 crore (Q3FY20). Gross margin improved 280 bps YoY to 39.6% but still continued to be lower than pre-Covid average of ~ 50%. EBITDA margin improved 470 bps YoY to 16.1% (Q3FY21: 11.4%, Q2FY22: 18.4%). EBITDA more than doubled to Rs.27.5 crore (Q2FY22: Rs.32.3 crore). Consequently, PAT grew 96% YoY to Rs. 21.3 crore.
Views: KKCL had exhibited strong revenue recovery and surpassed pre-Covid revenue level in Q3FY22. The momentum in sales continued aided by wedding and festive buying. Gross margin improvement on a YoY basis is positive and has aided improvement in EBITDA margin, which came in higher than last three year's EBITDA margin in Q3. Owing to its strong balance sheet, the company is well placed compared to peers to tide over the current volatile demand scenario.
Impact: Positive