One of the Largest vertically integrated textile player "K P R MILL" conducted their Q4FY21 conference call today at 4:00 pm.
" Expansion in Key Segments for Growth "
Here are the key takeaways 😊...
" Expansion in Key Segments for Growth "
Here are the key takeaways 😊...
Overview
- Company made strategic investment in wind power project and co-gen plant for captive consumption.
- Cotton price remain stable for most period , India is cotton surplus country , production have gone up.
- The company have improved it's cotton to yarn ratio to 40:45.
- Company made strategic investment in wind power project and co-gen plant for captive consumption.
- Cotton price remain stable for most period , India is cotton surplus country , production have gone up.
- The company have improved it's cotton to yarn ratio to 40:45.
Employees
- All measures are taken by company and
- In return employees have also participated in a dedicated way to improve Companies product quality.
- All measures are taken by company and
- In return employees have also participated in a dedicated way to improve Companies product quality.
Hurdles
- The company have stated that they have take all necessary measures regarding its raw material supply.
- Major concern from the second wave is related to customers cycle which will be under observations before any steps taken.
- The company have stated that they have take all necessary measures regarding its raw material supply.
- Major concern from the second wave is related to customers cycle which will be under observations before any steps taken.
Garment business
- The company has planned an Expansion of 42 million and planned to commence it by October.
- A delay was scene in this expansion due to delay in purchase of the land.
- This might lead to increase its margins by good margins
- The Capex cost is around 250 cr.
- The company has planned an Expansion of 42 million and planned to commence it by October.
- A delay was scene in this expansion due to delay in purchase of the land.
- This might lead to increase its margins by good margins
- The Capex cost is around 250 cr.
- Helping in generating a turnover of 600 cr of revenue
- The company have a view that industry is having great demand.
- They expect 10 to 15 percent as margins this period.
- The company have a view that industry is having great demand.
- They expect 10 to 15 percent as margins this period.
Sugar segment
- Company have also forward looked towards its sugar and ethinol expansion which might help in generating 15 to 30 CAGR.
- It's work is going on and will Commence from November period.
- Company have also forward looked towards its sugar and ethinol expansion which might help in generating 15 to 30 CAGR.
- It's work is going on and will Commence from November period.
- As the business is broken into sugar and ethanol business there revenue breakup is in the ratio of 70:30.
- A great increase in sugar business in suggested as there is a shift in their traditional model.
- The business had experienced a sales growth of 20%
- A great increase in sugar business in suggested as there is a shift in their traditional model.
- The business had experienced a sales growth of 20%
But a decline in its profits due to heavy expense.
- With ethanol the company might generate it's margin within the range of 25 to 30%.
- The company have stocked around 47000 tons for now and it generated 12 cr in profits from ethanol.
- With ethanol the company might generate it's margin within the range of 25 to 30%.
- The company have stocked around 47000 tons for now and it generated 12 cr in profits from ethanol.
On expansion cum new facilities
- Both Garment and sugar business will require 10 to 12 months period
- Other then garments and sugar New Knitting facilities are complete and production have began.
- Many small projects are also done along with that.
- Both Garment and sugar business will require 10 to 12 months period
- Other then garments and sugar New Knitting facilities are complete and production have began.
- Many small projects are also done along with that.
Yarn business
- Company have generated good yarn and fabric revenue this quarter.
- The company have seen a decline in their export business which is supported by domestic markets.
- Many government policy have been looked forward before improving our yarn capacity.
- Company have generated good yarn and fabric revenue this quarter.
- The company have seen a decline in their export business which is supported by domestic markets.
- Many government policy have been looked forward before improving our yarn capacity.
- Yarn is sold to retailers under the government rules which are created during this pendemic.
- In past 6 months Yarn prices have seen an increase but forward to that they have been stable considering increase in its demand.
- In past 6 months Yarn prices have seen an increase but forward to that they have been stable considering increase in its demand.
- Company looks forwards of making a big revenue shift from yarn to garment business in years to come.
Government
- The government mentioned about the creation of textile park , company will state out its advantages soon related to this.
- The company will avail road tax benefit for its last year accrued business.
- The government mentioned about the creation of textile park , company will state out its advantages soon related to this.
- The company will avail road tax benefit for its last year accrued business.
- The company stated that no lockdowns will be made by the government and small exemption were also given out.
- The company is planning to get under the PLI regime of textile.
- The company is planning to get under the PLI regime of textile.
Inventory and domestic-export
- The company states to have no major inventory for yarn stocks.
- As for cotton , they have procured enough stock which might last for a year.
- The company have recorded highest domestic revenue and lowest export revenue in last 4 quarters.
- The company states to have no major inventory for yarn stocks.
- As for cotton , they have procured enough stock which might last for a year.
- The company have recorded highest domestic revenue and lowest export revenue in last 4 quarters.
- In export the company have witnessed a positive realisation of its foreign currency like euro.
- Last year company faced issue related to unavailability of containers , which have been resolved this period. But have experienced an increase in its freight charges.
- Last year company faced issue related to unavailability of containers , which have been resolved this period. But have experienced an increase in its freight charges.
Power supply
- The company had generated around 33 cr as revenue from sales of its power.
- As the business is expanding so will its power requirements, for which they have made strategic investments.
- The company had generated around 33 cr as revenue from sales of its power.
- As the business is expanding so will its power requirements, for which they have made strategic investments.
Retail business
- The company have focused on online platforms for its retail business.
- There were few set backs which were being taken off.
- The company might enter into leisure ware to a bigger scale.
- The company have focused on online platforms for its retail business.
- There were few set backs which were being taken off.
- The company might enter into leisure ware to a bigger scale.
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