KPR Mills Q2 sales up 16.6% yoy; scale pre-COVID levels

KPR Mills reported growth of 16.57% in top line sales for the Sep-20 quarter at Rs941.92cr. The operating profits for the quarter ended Sep-20 was up 9.95% at Rs151.04cr

Oct 27, 2020 01:10 IST India Infoline News Service

KPR Mills
KPR Mills reported growth of 16.57% in top line sales for the Sep-20 quarter at Rs941.92cr. The operating profits for the quarter ended Sep-20 was up 9.95% at Rs151.04cr while the net profits were up by 3.12% at Rs112.54cr on a yoy basis. Despite lower raw material costs, the company incurred a higher cost on working capital management in the quarter.


This had a small impact on the margins of KPR Mills too. For the Sep-20 quarter, the operating profit margins or OPM was nearly 100 bps lower at 16.04% due to pressures on the working capital management. Net profit margins or NPM for the quarter also fell by over 150 bps at 11.95%.

Financial highlights for Sep-20 compared yoy and sequentially



Particulars Sep-20 Quarter Growth (yoy) Growth (qoq)
Total Revenues Rs941.92cr +16.57% +74.21%
Operating Profit Rs151.04cr +9.95% +85.30%
Net Profits Rs112.54cr +3.12% +86.63%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs16.36 Rs15.04 Rs8.76
Operating Margins 16.04% 17.00% 15.08%
Net Profit Margin 11.95% 13.51% 11.15%


Key takeaways from the Sep-20 quarter results

  • The company had actually benefited from lower raw material costs during the quarter. However, the working capital costs including the cost of inventory movement was much higher in the quarter leading to lower growth in profits as compared to sales.
  • For the first half of the fiscal year FY21, the cash generated from operations was up 15% at Rs545cr. Apart from lower cost of materials, the company also found some positives on the movement of trade payables leading to better cash flows in the first half.
  • The garments production of the company current stands at 26.08 million garments. The expansion plan for the new garment capacity will take the total production closer to 42 million garments once the expansion is completed. 

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