ICICI Securities has come out with its second quarter (July-September) earnings estimates for the Apparels sector. The brokerage house expects Kewal Kiran to report net profit at Rs 25.9 crore, up 105.4 percent quarter-on-quarter.
Revenue is expected to increase by 44.5 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 156.4 crore, according to ICICI Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 107.1 percent Q-o-Q (up 6.5 percent Y-o-Y) to Rs 40.1 crore.
ICICI Securities' report on Kewal KiranQ2 normally sees higher store openings and revenue growth tends to be driven by new store additions. We expect the revenues to grow by 10% YoY to Rs 156.4 crore, driven by volume growth of 9% YoY , while realisation is expected to remain flat at Rs 938 per garment. EBITDA margin is expected to decline by 84 bps YoY 25.6% on account of increased raw material costs. EBITDA is likely to grow by 7% YoY to 40.1 crore leading to a PAT growth of 7.3% YoY to Rs 25.9 crore.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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