- 28 Apr 2022
- ICICIdirect Research
KPR MILLS REPORTS STEADY OPERATIONAL PERFORMANCE AMID CHALLENGING SCENARIO
KPRMILL - 1019 Change: 1.20 (0.12 %)News: KPR Mills revenue for Q4FY22 grew 30% YoY (15% QoQ) to Rs 1449.9 crore (I-direct estimate: Rs 1409.3 crore). Revenue from textile division grew 34% YoY to Rs 1207 crore, while revenue from sugar division increased by 13% YoY to Rs 223 crore. Gross margins contracted 292 bps QoQ to 40.9%. However, on account of positive operating leverage, EBITDA margins contracted only 100 bps QoQ to 23.2%. PAT grew 4% QoQ to Rs 219.8 crore (up 18% YoY, I-direct estimate: Rs 214.1 crore)
Views: Despite a significant increase in raw material prices (cotton), KPR reported a steady operational performance with numbers coming in higher than our estimates. Healthy yarn realisations and strong order book for the garmenting division continued to drive topline growth. Garmenting division (~45% of textile revenue) recorded an all-time high production of 124 million pieces in FY22 (vs. 95 million pieces in FY21). The recently commissioned garmenting facility (42 million pieces in Q3FY22) is expected to have contributed in the current quarter
Impact: Positive