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Kewal Kiran Clothing Ltd.

BSE: 532732 Sector: Industrials
NSE: KKCL ISIN Code: INE401H01017
BSE LIVE 15:29 | 15 Nov 1839.00 -26.00
(-1.39%)
OPEN

1869.90

HIGH

1870.00

LOW

1836.05

NSE 14:29 | 17 Nov 1840.00 4.00
(0.22%)
OPEN

1836.00

HIGH

1851.00

LOW

1831.00

OPEN 1869.90
PREVIOUS CLOSE 1865.00
VOLUME 140
52-Week high 1980.00
52-Week low 1575.00
P/E 29.65
Mkt Cap.(Rs cr) 2,267
Buy Price 1834.95
Buy Qty 9.00
Sell Price 1857.00
Sell Qty 30.00
OPEN 1869.90
CLOSE 1865.00
VOLUME 140
52-Week high 1980.00
52-Week low 1575.00
P/E 29.65
Mkt Cap.(Rs cr) 2,267
Buy Price 1834.95
Buy Qty 9.00
Sell Price 1857.00
Sell Qty 30.00

Kewal Kiran Clothing Ltd. (KKCL) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure to present to you the Company's 26th Annual Report.

The recently concluded financial year 2016-17 would rank among the most influentialyears in independent India that will steer the course of the Indian economy. The highlightof the year was the bold decision by the Government of India to demonetize highdenomination currency to decisively tackle the issues of black money corruption fakecurrency and tax compliance.

It was obvious that a move of this magnitude would lead to short-term disruptions in aneconomy that was substantially driven by cash transactions. The branded apparel sector wasamong the worst hit as consumers focused on meeting their essential needs and deferredother purchases. The timing added to the challenges as it coincided with the peak seasonfor the sector. I am pleased to state that the Company's performance during thischallenging phase has demonstrated its strength and proven beyond doubt the success of itscore mantra of pursuing Stable Sustainable and Scalable growth. The Company achieved agrowth of 7.67% in revenues from operations at Rs. 494.44 crores along with 25.5% growthin Profit after Tax from Rs. 67.95 crores to Rs. 85.28 crores. It maintained itsprofitability at the operating level and completed the year with a strong cash position.The cash and cash equivalents and investments together stood at more than Rs. 250 crores.Despite demonetization there was no major impact on the Company's core profit or itsfinancial position thereby proving the stability and sustainability of the business evenin adverse conditions.

The year also reinforced our belief that a successful and robust business can be builtonly on the basis of its ability to generate cash flows from its core operations on asustainable basis. This was evident from the trends witnessed in the E-commerce sector.Investor focus in the sector turned from cash burn to cash breakeven and as the liquiditythat was supporting the cash burn dried up the fallout was inevitable. Marginal playerseither had to shut shop or sell-out while other players had to resort to employee layo s.Valuations of several players saw markdowns as the liquidity fuelled growth faltered witha decline in the pace and size of funding injections.

The branded apparel fashion business has a significant scope of growth and developmentin India considering the vast landscapes from east to west north to south. This segmentrequires apart from financial investment a huge emotional connect with its consumers andthe local touch. However simple it may sound a growing branded apparel business comeswith its own set of challenges.

At KKCL we commenced our journey more than two decades ago. We have been continuouslyinvesting to build strong brands robust manufacturing infrastructure wide and deepdistribution network and high-quality products with a global appeal. We have not driftedfrom our core values. This has helped us in tiding over challenging times and continuingto grow without jeopardising the financial strength and integrity of the business.

I thank you all for being our valued partners and stakeholders in this journey and lookforward to your trust and confidence for our future endeavors.

I also thank my workforce and liaisons for being the strength of the Company.

Best wishes

Kewalchand P. Jain

Chairman and Managing Director