Q4FY22 Result Update - KPR Mill - ICICI Direct

Garmenting division reported record high volumes in Q4FY22, driven by capacity expansion and sales of previous quarter stock, which was not delivered in Q3FY22 due to lack of availability of container

- Revenue for the quarter grew 30% YoY (15% QoQ) to Rs. 1449.9 crore. Revenue from textile division grew 34% YoY to Rs. 1207 crore while revenue from sugar division increased 13% YoY to Rs. 223 crore

- Gross margins contracted 292 bps QoQ to 40.9% mainly on account of higher cotton prices (up 21% to Rs. 225/kg)

- EBITDA margins contracted 100 bps QoQ to 23.2% with absolute EBITDA increasing 10% QoQ to Rs. 336.1 crore

- KPR in the previous quarter had commissioned its garmenting facility (42 million pieces) and has robust order book of Rs. 900 crore

Key triggers for future price performance

- Two major capex projects worth Rs. 750 crore towards garmenting (Rs. 250 crore) and ethanol facility (Rs. 500 crore) expected to be ramped up in FY23E

- Capital deployment towards value accretive projects (targeted RoCE: garmenting:30%, ethanol: 22%) augurs well for KPR

- Robust opportunities in US market gives strong visibility for sustained export growth (currently Europe is key market for garment exports). Recent FTA with Australia to benefit KPR as the region contributes 15% to sales

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

KPRMill Q4FY22 ResultUpdate ICICIDirect