Ranakpur, February 09, 2025: Kewal Kiran Clothing Limited (KKCL) (NSE: KKCL, BSE: 532732), a leading lifestyle apparel brand, reported its financial results for Q3 and the nine months that ended December 31, 2024 (Q3 & 9M FY25).
Key Financial Highlights (Consolidated)
Q3 FY25 Performance:
- Revenue from Operations surged 27.5% YoY to ₹255.2 crore (Q3 FY24: ₹200.2 crore).
- Gross Profit rose 21.8% YoY to ₹105.6 crore (Q3 FY24: ₹86.7 crore).
- EBIDTA increased 20.8% YoY to ₹46.9 crore (Q3 FY24: ₹38.9 crore), with an EBIDTA margin of 18.4% (Q3 FY24: 19.4%).
- Profit After Tax (PAT) declined 21.5% YoY to ₹26.1 crore (Q3 FY24: ₹33.2 crore), primarily due to increased depreciation and amortization expenses.
9M FY25 Performance:
- Revenue from Operations grew 11.5% YoY to ₹714.6 crore (9M FY24: ₹641.1 crore).
- Gross Profit rose 10.1% YoY to ₹303.1 crore (9M FY24: ₹275.4 crore).
- EBIDTA increased 2.8% YoY to ₹138.5 crore (9M FY24: ₹134.7 crore), with an EBIDTA margin of 19.4% (9M FY24: 21.0%).
- PAT grew 2.0% YoY to ₹119.0 crore (9M FY24: ₹116.6 crore).
| Particulars (₹ Cr) | Q3 FY25 | Q3 FY24 | YoY Growth | 9M FY25 | 9M FY24 | YoY Growth |
|---|---|---|---|---|---|---|
| Revenue from Operations | 255.2 | 200.2 | 27.5% | 714.6 | 641.1 | 11.5% |
| Gross Profit (GP) | 105.6 | 86.7 | 21.8% | 303.1 | 275.4 | 10.1% |
| GP Margin (%) | 41.4% | 43.3% | - | 42.4% | 43.0% | - |
| EBIDTA | 46.9 | 38.9 | 20.8% | 138.5 | 134.7 | 2.8% |
| EBIDTA Margin (%) | 18.4% | 19.4% | - | 19.4% | 21.0% | - |
| PAT | 26.1 | 33.2 | -21.5% | 119.0 | 116.6 | 2.0% |
| PAT Margin (%) | 10.2% | 15.9% | - | 15.6% | 17.4% | - |
Operational & Business Highlights
- Expansion in Exclusive Brand Outlets (EBOs): Grew from 488 outlets (March 31, 2024) to 591 outlets(December 31, 2024), reflecting a strong retail presence.
- Category Performance:
- Jeans (46.3% of Q3 sales) remained the top contributor, followed by Shirts (20.8%) and Trousers (19.5%).
- Volume Sales increased from 29.2 lakh units (Q3 FY24) to 37.5 lakh units (Q3 FY25).
- Channel-Wise Sales Mix:
- Retail sales accounted for 60.8% of the total Q3 revenue, up from 49.8% in Q3 FY24. This reflects a substantial shift towards direct-to-consumer channels.
Corporate Updates
- Strategic Expansion in Kidswear: Brand "Killer" now extends from "four-to-forever" with the launch of kidswear.
- Acquisition of Kraus Casuals: The Integration of Kraus Casuals Pvt. Ltd. contributed to higher depreciation and amortization costs, impacting net profit.
- Application for Strike-off of Kewal Kiran Lifestyle Limited (KKLL): A non-operational subsidiary to be removed from company records.
Management Commentary
Kewalchand P. Jain, Chairman & Managing Director, stated:"We are pleased with our revenue growth, which is driven by strong consumer demand, brand strength, and retail expansion. The temporary dip in PAT is attributed to increased investments in store expansion, marketing, and strategic acquisitions. We remain confident in our long-term profitability and brand positioning."
Outlook & Future Growth Strategy
- Retail & E-commerce Expansion: KKCL is focusing on strengthening its direct-to-consumer (D2C) presence with new EBOs and digital channels.
- Portfolio Diversification: Continued investment in kidswear and womenswear to capture a broader customer base.
- Margin Improvement: The company is optimizing its cost structure and enhancing operational efficiencies to recover profit margins.