S Kumars Nationwide net profit jumps 58%

S Kumars Nationwide (SKNL), a diversified textile and apparel company with a major focus on domestic market, has posted an increase of 57.59 per cent in net profit at Rs 43.21 crore for the quarter ended September compared with Rs 27.42 crore in the corresponding quarter last year. Net sales grew to Rs 391.1 crore (Rs 278.25 crore), up 40.56 per cent.

Substantial growth in segments such as home textiles, garments, consumer and luxury textiles helped the company put a good show in the quarter under review.

Home textiles saw a growth of 25 per cent, garments 66 per cent, consumer textiles 50 per cent and luxury textiles 21 per cent in the quarter.

Nitin Kasliwal, managing director, SKNL, said, "The company would maintain its growth momentum through continued thrust on its existing businesses. Our concentration on the domestic market has permitted us to expand market share and protect margins."

Anees Fazalbhoy, director "� business strategy of the company, said, "We have to be careful about value addition. We are not only going for volumes, attention to protecting margins is equally important."

Operating profit for the September quarter stood at Rs 82.21 crore (Rs 55.4 crore). Earning per share stood at Rs 2.14 (Rs 1.73).

The company, with a turnover of Rs 1,225 crore as on March 2007, has five manufacturing facilities with a garmenting capacity of 1.2 million pieces. It has around 30,000 outlets across the country with brands including Reid & Taylor, Belmonte, S Kumars and Carmichael House.

S Kumars Nationwide (SKNL) is eyeing an annual net sales of Rs 1,700 crore during the current financial year, a jump of over 38 per cent compared with previous year.

With a robust result during the September quarter, company is bullish for the future. "In the coming years, domestic market will grow by 5-10 per cent as consumerism is booming. Well-distributed branded players in the domestic market will see a robust scenario," said Nitin Kasliwal, managing director, SKNL.

"We expect our net profit for the year (FY08) to be around Rs 190-200 crore," he added. This would mean a jump of over 75 per cent in net profit compared with last year's Rs 107.47 crore.

The company is in a process of adding more brands to its kitty. "Our focus on brand is very strong. We will keep adding product categories to our portfolio," Kasliwal said. Most of sales come from our branded play, he added.

By the month end, company will launch its fifth domestic brand under the name Stephens Brothers which will be metro-centric. The company will foray into women's wear too under this brand in a limited way.

The company is set to bring in international brands in the country too. "We are in advanced talks with foreign brands. In the next three years, the company will bring in around 8-10 foreign brands in the domestic market," said Kasliwal.