Kitex Q4 profit tumbles 62pc to Rs10.34 cr

Revenue drops by 46 crore during quarter 4

KOCHI: Kitex Garments Ltd (KGL), one of the leading manufacturers in Kerala, has recorded a steep drop of 62 per cent in the fourth quarter standalone net profit to Rs10.34 crore compared with Rs26.85 crore the company posted for the same period last year.

The company, which had already paid 75 paisa as interim dividend, has proposed another 75 paisa more this time, thus taking the total dividend to be paid to Re1 per share with the face value of Re1

The profit has been dented primarily by the drop in revenue to the extent of about Rs46 crore during the quarter ended March 31, 2018 in comparison with the same period last year.

The full year net profit for the year ending March 31, 2018, also dropped by more than Rs22 crore as it contracted from Rs92.22 crore to Rs70 crore.

The company has trade receivables worth Rs17.35 crore from TOYS “R” US one of the leading customers that has filed petition in the Bankruptcy Court in the United States to wind down its US operations, and the process is pending according to a note to the financials of the company

Kitex as a prudential measure has made an estimated provision of Rs3.47 crore towards the loss, if any, on the recovery of the said receivables.

 

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