Kewal Kiran strong on CRISIL’s expectations

Research firm CRISIL has graded and maintained its fundamental

grading of 4/5 Kewal Kiran Clothing in its latest report. Profit margins and revenues of Kewal Kiran Clothings after the fourth quarter 2012 that ended on May 11, 2012 were similar to expectations of CRISIL. In accordance to the growth in apparel volumes, Kewal Kiran’s revenues augmented by 22 per cent year-on-year and 4 per cent quarter-on-quarter. Selling and distribution expenses dropping down by 7 per cent to Rs 4.3 million, EBITDA margin recorded an increase of 770 basis points quarter-on-quarter to 26.3 per cent compared to 13 per cent in third quarter of fiscal 2012. Due to higher raw material costs, EBITDA margins decreased by 500 basis points year-on-year to 24.3 per cent.

Contributing majorly to the company’s total revenue in fiscal 2012, Kewal Kiran’s brand ‘Killer’ grew at 19 per cent. Irrespective of the economic challenges, Kewal Kiran maintained a sturdy balance sheet and a fundamental grade of 4/5. It doubled its store count. The company successfully opened 76 new stores (net of closures). It recorded a cash balance of Rs 1 billion in the fiscal 2012.