KPR Mill to expand garment segment by investing Rs 250 crore

KPR Mill Ltd is venturing into the expansion of its garment segment by establishing a new garment factory with a capacity of 42 million garments per annum at an estimated project cost of Rs 250 crore.

This expansion would drive the revenue going ahead as the garment segment is the highest revenue contributor to the company’s total revenue with a share of 42 per cent.

Also, on the industrial front, many global companies would shift buying from China to other countries, including India. India is one of the largest producers of raw materials such as natural fibre, cotton, jute as well as of synthetic fibre. This favourable shift would drive the company’s garment business in the coming time.

The company has also come up with its quarterly numbers for the period ended September 30, 2020. The consolidated revenue for the quarter Q2FY21 came in at Rs 941.92 crore, registering a 16.6 per cent YoY increase and 74.2 per cent QoQ increase.

EBITDA for the quarter grew by 10.7 per cent YoY to Rs 189.4 crore as against Rs 171.03 crore in the corresponding quarter last year, with a corresponding margin contraction of 106 bps while EBITDA margin for the quarter stood at 20.1 per cent.

PAT for the quarter came in at Rs 112.54 crore, registering a 3.1 per cent YoY increase and 86.6 per cent QoQ increase.

The company has a capacity to produce 1,00,000 MT of yam per annum; 40,000 MT fabrics per annum; 115 million of ready-made knitted apparel per annum, 66 windmills with the total green power generation capacity of 61.92 MW; co-gen cum sugar plant with a capacity of 30 MW & 5,000 TCD and ethanol plant with 90 KLPD capacity.

The company’s revenue mix comprises of yarn & fabric (42 per cent of sales), garment (42 per cent), sugar (10 per cent) and others (6 per cent).