KKCL profit figures make waves

As a leading men’s apparel manufacturer with brands such as Killer, Easies, Lawman

and Integriti, Kewal Kiran Clothing Limited (KKCL) has recently posted one of its highest-ever business profit figures this fourth quarter. The profit-after-tax of the company for the quarter ended March 31, 2011 stood at Rs 111 million, much higher than its expected Rs 75 million, which included overall results including revenues, margins as well as earnings. The operating margin increased by 29.2 per cent for the last quarter, while on a year-on-year basis too, the operating margin increased by 1.4 per cent. The company further surpassed its expected Rs. 510 million income from operations which jumped to around Rs 550 million. The profits from the apparel segment increased by 12 per cent, while volume-wise the growth remained subdued at 2.2 per cent. Addiction, the company’s accessories brand, generated revenue of Rs 25 million during the fourth quarter, selling around 195,000 units at an average price of Rs 128 per unit.

Kewal Kiran Clothing Limited has an inherent core competency in manufacturing and from sourcing to finishing every aspect of the company’s manufacturing has added to its success. With five units, an annual capacity of 30 lakh pieces, over 1400 employees, the latest technologies in jeans manufacturing, the company’s ability to innovate in manufacturing enables it to quickly go from design to market. Despite increased price of raw materials in the current market scenario, it’s profit margin has been positive, owing to leveraging benefits of selling and other administrative expenses.

Incorporated in 1981, Kewal Kiran Clothing Limited today is amongst the few large branded apparel manufacturers in India. The company has sales in Asia, Middle East and CIS. The company designs, manufactures and markets branded jeans, semi-formal and casual wear for men and women. The company which began as a manufacturer of men’s wear for reputed brands, now churns out a product line of jeans, jackets, innerwear, accessories, shirts, cargos and capris, tee shirts and shoes and socks. In 1989, the company introduced Killer, the first international denim brand created in India and now one of the most successful brands in the domestic apparel industry.