By CL Jose
KOCHI/January 28-2022: The vexations Kitex Garments Ltd (KGL) and its chairman, Sabu M Jacob, have been mired in for the past more than a year or so, for different reasons – alleged by the company to be predominantly pollical and personal, have failed to dent the financial performance of KGL, where the promoters led by the chairman hold more than 55 per cent stake.
The net profit of the company for the third quarter of the current year (Q3, FY22), more than doubled to Rs34.71 crore year-on-year compared with Rs16.83 crore Kitex logged for the same period last year. Kitex Garments share was trading at around Rs275 (1:22 pm/January 28).
Kitex, claimed to be second largest infants’ garments manufacturing company in the world, saw its Q3 net profit grow 27.33 per cent sequentially.
A ‘Zero Debt Company’, KGL, said its expansion in the state of Telangana is in progress as per the scheduled time line.
Sabu M. Jacob (seen in the picture), chairman & managing director (CMD) of the group, said that despite the Increase in raw materials costs by around 30 per cent, the company has been able to achieve a higher turnover and higher profit through effective cost control measures deployed.
The profit for the 9 months in the current year was at Rs83.94 crore compared with Rs50.17 crore for the same period a year ago, indicating a growth during the 9-month-period in the current year of 67.31 per cent.
The consolidated financial statements include the performance of six wholly owned subsidiaries based in India and one associate based in the US, Kitex USA LLC.
On a consolidated basis, the net profit of the group for Q3 was at Rs34.69 crore compared with the Q2 net profit of Rs25.72 crore, whereas the net profit the group made for the same period last year was at Rs15.54 crore.
Total income generated by Kitex Garments for the quarter under review was Rs203.20 crore, compared with Rs182.36 crore and Rs123.07 crore the company earned for the second quarter and for the third quarter a year ago respectively.
Rs750 cr to be invested in subsidiary
The company has incorporated the subsidiary, ‘Kitex Apparel Parks Ltd’ on November 18, 2021 with a proposed investment of Rs750 crore.
“The company’s operations will encompass all verticals from spinning to readymade garments including manufacture of accessories and packing materials,” a Kitex statement said.
