Kewal Kiran Q4 PAT rises 19% YoY to Rs 38 cr

Kewal Kiran Clothing (KKCL) reported 19% rise in standalone net profit to Rs 37.59 crore in Q4 FY24 as compared with Rs 31.59 crore in Q4 FY23.

Revenue from operations jumped 10% year on year to Rs 219.42 crore in Q4 FY24, mainly driven by positive volume growth.

The company witnessed growth across majority of its categories including an impressive growth of around 14% from its denim wear category.

Profit before tax stood at Rs 47.59 crore in Q4 FY24, up 12.19% from Rs 42.42 crore reported in Q4 FY23.

During the quarter, EBITDA was at Rs 42.4 crore, registering the growth of 8.7% on YoY basis. EBITDA margin came in at 19.3% in Q4 FY24 as against 19.6% recorded in Q4 FY23.

On full year basis, the company's net profit jumped 29.54% to Rs 154.53 crore on 10.4% increase in revenue to Rs 860.5 crore in FY24 over FY23.

Kewalchand P. Jain, chairman & managing director said, I am very happy to announce another year of industry leading performance with double digit sales growth in FY2024. Aligning with our strategic vision of expanding and diversifying our Casual Wear portfolio and broaden our Womens Denim & Casual Wear offering, the board has approved acquisition of 50% stake in Kraus Casuals, which provides us a strategic opportunity to consolidate our position further and increase our scale of operations. We anticipate this transaction to be earnings per share accretive and also generating enduring value for our shareholders in the years ahead.

The revenue growth backed with strong growth in EBITDA margins is primarily on account of efficiencies due to increase in scale of operations. The performance is reflective of oursubstantial brand equity among consumers and the strength of the companys brands to connect with consumers in providing an unparalleled fashion experience.

Meanwhile, the company has announced strategic acquisition of 50% stake in Kraus Casuals (KCPL) for a total consideration of Rs 166.51 crore. The equity stake will be acquired through primary infusion and secondary purchase.

By venturing into the Womens Denim & Casual Wear category through this acquisition, KKCL not only broadens its market presence but also fortifies its leading position in India and UAE markets. The acquisition is expected to be completed within next 90 days.

Kewal Kiran Clothing (KKCL), a menswear focused apparel player with more than four decades of success led journey. It has been able to penetrate through its targeted consumer base with its 4 iconic menswear brands of Killer, Intergiti, Lawman & Easies. With 483 exclusive brand outlets and more than 80 distributors covering over 3,000 MBOs spread across India.

The scrip fell 0.32% to Rs 682 on the BSE.

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