Rupa & Company gains after Q2 FY22 PAT grows 17% to Rs 53 cr

Rupa & Company rose 1.23% to Rs 485.35 after the company's consolidated net profit jumped 16.7% to Rs 52.97 crore on a 20.7% rise in net sales to Rs 365.47 crore in Q2 September 2021 over Q2 September 2020.

On a consolidated basis, EBITDA grew 8% to Rs 71.30 crore in Q2 FY22 from Rs 66.10 crore in Q2 FY21. EBITDA margin was at 19.4% in Q2 FY22 as against 21.8% in Q2 FY21. Profit margin stood at 14.4% in Q2 FY22 as compared to 15% in Q2 FY21. The net debt as on 30 September 2021 stood at Rs 194 crore while cash & cash balances were at Rs 119 crore.

Commenting on the Q2 results, Dinesh Kumar Lodha, the chief executive officer (CEO) of Rupa & Company, said, "Despite the challenges faced during the first half of the year, the company has remained resilient, and revenues have grown by 14% to Rs 586 crore. EBITDA and PAT have increased by 11% and 22% respectively on the back of improved operating efficiencies and cost reduction strategies adopted by the company. We have seen improved traction during the festives, and we expect a much better second half of the year. The company is also witnessing strong demand for its thermal wear range."

"The company is focusing on innovating new products and continuously increasing such products in each of its sub brands having the best fabrics and cutting-edge production techniques. The company is focusing on increasing sales volumes with changes in product mix. The company's plans to increase if share in the premium and super premium category, improve focus on women wear, casual wear, and thermal wear, and foray in newer markets with higher penetration in the existing markets. With focus on increasing distribution network across India, we expect these cost to remain at similar level going ahead. We have always been committed to our long-term goal of providing the highest level of consumer satisfaction with our products and brands and we are confident of achieving robust operational and financial performance going ahead," he added.

Rupa is one of the leading knitwear brand in India, covering the entire range of knitted garments from inner wear to casual wear. Rupa has a broad product portfolio of innerwear, thermal wear, and casual and athleisure wear.

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