Koutons Retail to maintain current margins at 19%

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Koutons Retail to maintain current margins at 19%

Koutons Retail has come out with a good set of numbers for Q4 and FY08. DPS Kohli, Chairman of Koutons Retail said they plan to raise further money from QIBs in 2009-2010. Koutons will maintain current margins.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS Koutons Retail FY08 net sales up by 97% at Rs 793.50cr ALSO READ See latest News about Koutons Retail See previous management interviews See what other Experts & Brokerages are saying about Koutons Retail Koutons Retail BSE | NSE 25/04/12 Are Mutual Funds betting on Koutons Retail?

Koutons Retail has come out with a good set of numbers for Q4 and FY08. DPS Kohli , Chairman of Koutons Retail said they plan to raise further money from QIBs in 2009-2010. Koutons will maintain current margins.

Excerpts from CNBC-TV18's exclusive interview with DPS Kohli:

Q: Could you walk us through the performance for each of your segments this time around and what is the forecast you are offering investors for FY09?

A: We had a good year and the topline revenue we closed at around Rs 793.5 crore, which is almost 97% from last year FY06-07 and the PAT revenue which was 69% is now 100%. In the year FY06-07 we had done Rs 34.5 crore.

Q: Could you tell us about your expansion plans? We understand that you are looking at raising anywhere between Rs 250-300 crore, how are you planning to raise it?

A: We are planning to raise further money from Qualified Institutional Buyers (QIB), but that will be later in 2009-2010. At the movement we have enough funds and our debt-equity ratio is quite comfortable, so that we can arrange from the debt market.

Q: Margins this time around were higher at 19% sequentially, for FY09 what is the forecast that you are offering in terms of where you would see margins stabilizing and also the kind of volume growth you see for men's wear segment?

A: We will be maintaining this margin, this growth will be maintained for future as well because we now have extension of lines in the ladies 'La Femme' and 'Koutons Junior'. So the margins growth will be maintained in future also.

One the men's segment this year we have closed 1,175 stores and for the next year we are looking at 1,800 stores out of which 650 stores will be Koutons, 950 would be Charlie Outlaw and 200 stores would La Femme and Koutons Junior store.