KKCL earnings below CRISIL estimates but stocks buoyant

Kewal Kiran Clothing's (Kewal Kiran's) second quarter revenues in FY15 were in line but earnings were below CRISIL Research's estimates. Driven by a 5.2 percent year-on-year growth in apparel volumes, revenues grew 11.4 percent to Rs 1,298 million. Owing to an increase in raw material cost as a percentage of sales, EBITDA margin contracted for the fourth consecutive quarter by 320 bps to 27.5 percent.