Q2 2025 Kewal Kiran Clothing Ltd Earnings Call Transcript
Key Points
- Kewal Kiran Clothing Ltd (BOM:532732) reported a consolidated growth of 17.4% year on year, indicating strong performance.
- The company added 21 Exclusive Brand Outlets (EBOs) in Q2 FY25, bringing the total to 534, with 55 more in development, showcasing expansion efforts.
- The Kraus brand performed well, contributing INR55 crores in revenue for the quarter, indicating successful integration and growth.
- The Junior Killer brand is gaining traction, with positive market sentiment and good performance since its launch in April.
- The company is optimistic about demand due to the festive season and upcoming wedding and winter seasons, expecting continued growth.
- Standalone sales were impacted by lower manufacturing due to a slowdown in consumer demand in the first quarter, affecting overall performance.
- Operating cash flows have decreased due to an increase in trade receivables, raising concerns about cash management.
- The company faced production issues, leading to missed growth opportunities, which could have increased growth by 10% if resolved.
- There is a high working capital cycle, with receivables for Kraus at INR76 crores against INR55 crores in sales, indicating inefficiencies.
- Depreciation and employee costs have increased significantly due to integration, impacting profitability.
Ladies and gentlemen, good day and welcome to the Kewal Kiran Clothing Limited, Q2 and H1 FY25.
(Operator Instructions)
I, now hand the conference over to Mr. Hemant Jain, Joint MD, Kewal Kiran Clothing. Thank you and over to you, sir.
Good morning, everyone. It is our pleasure to welcome all the participants to the earning conference call for Q2 and H1 FY25.
Joining me on this call is Mr. Pankaj Jain, President, Retail and Marathon Capital, our investor relations adviser. I hope everyone had an opportunity to go through our investor tech and result release that we have uploaded on the exchange and our company's website.
Firstly, on behalf of entire family, I would like to wish each and everyone a happy Diwali and prosperous, prosperous New Year.
We are delighted to report strong start with Kraus casual acquisitions, unlocking consolidations benefit and driving growth through Junior Killer brand, which is also gaining good transaction.
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