S Kumars reports robust performance in Q3

Hyderabad: S Kumars Nationwide, India's leading multi-segment diversified textile & apparel maker has announced results for the third quarter of the year ended 31st December 2005.

The company has achieved a 52.2 per cent growth in turnover to Rs225.74 crore from the corresponding quarter of the previous year's Rs148.33 crore in the quarter ended Dec 31, 2005.

Operating profit rose to Rs40.24 crore against a corresponding figure of Rs10.52 crore for the same quarter last year. Operating margins have improved significantly to 17.8 per cent from 7.1 per cent. Profit after tax for the quarter stood at Rs25.79 crore against a loss of Rs5.82 crore in the corresponding quarter in the previous year.

Commenting on the performance for the quarter ending 31st December 2005 Nitin S Kasliwal, managing director of SKNL said, "These results are in line with the consistently strong performance of the company over the past last three quarters. It is a result of realigning our business strategy in tune with the market dynamics. The next quarter is going to be even better with the launch of our home textiles brand, Carmichael House in March and the introduction of a leading international fashion label in India."

For the first nine months ended Dec 05, turnover grew to Rs641.84 crores from Rs483.25 crore in the corresponding period of 2004-05, reflecting an increase of 32.8 per cent. Operating profit rose by 177 per cent to Rs101.23 crore from Rs36.54 crore last year. Profit after tax for the first nine months stood at Rs64.33 crore.

The company's plans under implementation include:

• Manufacturing complex for high value fine cotton shirtings with a capacity of 12 million meters per annum.
  
• World class garments manufacturing facility for exports with a capacity of 2 million garments per annum.
  
• Increase in home textile capacity to 14 million meters per annum.
  
• Introduction of Carmichael House brand in the domestic market for home textiles.
  
• Doubling the worsted fabric manufacturing capacity from 6 million meters to 12 million meters per annum.
  
• Launching of new initiatives under BHRL (Brand House Retail Ltd) a recently established 100 per cent subsidiary of SKNL including:
  a) Setting up and management of exclusive stores for  SKNL.
  b) Setting up and management of exclusive stores for leading international brands being brought to India through SKNL.