To further streamline our processes and reduce costs we have initiated renewed costoptimization strategies at various levels of our production
With immense pleasure I would like to inform you that this year your company hastouched a record turnover of 78357.54 lakhs signifying a growth of 24.52% over previousfinancial year. The operating profit stood at Rs. 14317.12 lakhs compared to Rs.13019.01 lakhs in the previous year. This growth is an outcome of Kitex Garments Ltdenhancing its global brand equity in the highly regulated infantwear markets such a US andEurope I convey my profound thanks to our customers employees and suppliers for thisremarkable outcome. FY2020 ended with the spread of COVID-19 pandemic across the globe. Ihope all of you and your dear ones are taking all necessary precautions to stay safe.Across the globe Pandemic has disrupted the normal life of human beings businessoperations and society as a whole. India saw its overall economic growth hitting an11-year low of 4.2% in the FY 20. We believe that the economy will bounce back to thenormal state and will see its signs of a recovery in the coming quarters.
COVID Impact on Our Business
During the lock down period business operations of the Company were significantlyimpacted. Although regular production was suspended in the month of March April andsometime in May the Company produced Personal Protective Equipment (PPE) kits and masksduring this time and hence the machineries and equipments were partially put to use.However we resumed operations post lifting of the lockdown and since then the productionhas picked up and the Q1 production is estimated to be around 35%. We envisage ourproduction to improve in line with the recovery in our key markets. For parents infantapparel is an emotional and essential item and going forward we are hopeful of a recoveryin our key markets. We continue to focus on further streamlining our processes and reducecosts we have initiated renewed cost optimization strategies at various levels of ourproduction. Due to Stringent Covid Guidelines and social distancing norms enforced at theworkplace the operations continue to be run at lower capacity. We adhere to all necessaryprecautions and guidelines thereby ensuring the safety and health of our employees. We arealso deferring our capex plans earmarked for FY21 till the situation is completelynormalized.
FY 2020-21 is a challenging year for your company with significant impact on productionin Q1. With the overall retail volumes through stores as well as online picking up in USAwe believe that Q2 will be a regaining period in which we could increase the productioncapacity to 60% from 35% in Q1. We are continuously monitoring the current situation withrespect to all challenges and opportunities including the situation emerging from USA China trade war. As you leaf through the pages of this year's Annual Report youwill read about our unique capabilities and key differentiators to stay ahead of thecurve. Last but not least the initiatives taken by the Company for Caring the Societytowards housing for poor families rural infrastructure development promotion ofagriculture cultivations to name a few. I would like to take this opportunity to thank allbanks and other financial institutions the Government of India and the respective stategovernments and buyers for their unstinted support and actively contributing to oursuccess. We at Kitex Garments Limited remain ever committed and sincere in our efforts tokeep delivering better value to you.
|Wishing you all the best. Stay safe. |
|Sabu M. Jacob |
|Chairman and Managing Director |