Kitex Q1 profit drops 9.4 pc to Rs12.65 cr

PPE kit production generates Rs18.2 cr revenue

KOCHI: Kitex Garments Ltd (KGL), one of the best managed companies in Kerala, has reported a consolidated net profit of Rs12.65 crore for the quarter ending June 30, 2020 compared with Rs13.96 crore the company reported a year earlier.

The Kitex shares closed Rs3.50 up at Rs106.50 on NSE on Monday (Sept 14).

The standalone net profit of the company has been a tad better at Rs14.10 crore against Rs14.53 crore for the comparable previous period.

The total income at Rs92.51 crore for the quarter under review would have been much worse had the company not ventured into another means of income during the said period. The total income for the quarter in the earlier year was Rs146.66 crore.

As mentioned, during the quarter, the company engaged in the production of personal protective equipment kit (PPE kit). Revenue from operations of the company thus includes Rs18.19 crore generated from the sale of PPE kits.

Moreover, it has been observed that the employee benefits expenses were down to Rs15.54 crore for the quarter compared with Rs24.88 crore during the same quarter last year – declining by a substantial 34.54 per cent.

This has also helped the company curb the erosion in bottom line during the quarter to a good extent.

The wholly owned subsidiaries of KGL are Kitex Littlewear Ltd, Kitex Babywear Ltd, Kitex Kidswear Ltd, Kitex Knits Ltd, Kitex Packs Ltd and Kitex Socks Ltd, whereas Kitex USA LLC is the lone associate of the Kitex Group.

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