KKCL Profit Surges 36% In Q2 FY25
Kewal Kiran Clothing Limited (KKCL), a prominent Indian lifestyle brand company with a strong presence across Menswear, Womenswear, and Kidswear categories, announced its audited financial results for the quarter and half year ended September 30, 2024.
In Q2 FY25, KKCL’s consolidated revenue from operations rose by 17.4% to Rs 308.2 crore, compared to Rs 262.5 crore in the same quarter last year. The company’s gross profit increased to Rs 128.8 crore, though its gross margin slightly declined to 41.8% from 42.7% in Q2 FY24. EBITDA grew by 3.6% to Rs 63.9 crore, with an EBITDA margin of 20.7%, down from 23.5% in the previous year. However, profit before tax (PBT) saw a robust 30.4% rise, reaching Rs 86.2 crore, while PBT margin increased to 25.2%. Net profit (PAT) grew by 36.2% to Rs 67.7 crore, with PAT margin expanding to 19.8%.
For H1 FY25, KKCL reported a 4.2% revenue growth to Rs 459.5 crore. Gross profit rose to Rs 197.5 crore, and the gross margin stood at 43.0%. However, EBITDA declined by 4.5% to Rs 91.5 crore, with EBITDA margin at 19.9%. PBT rose 12.6% to Rs 121.0 crore, with PBT margin at 24.0%, while PAT grew by 11.4% to Rs 92.9 crore, reaching a PAT margin of 18.4%.
Commenting on the results, Chairman & Managing Director Kewalchand P. Jain said, “I am pleased to report resilient results for this quarter primarily driven by the successful execution of our consolidation strategy and strategic initiatives which has propelled our growth and expanded our market share. With encouraging results of recently introduced Junior Killer and successful consolidation of Kraus Casuals, we are more confident of evolving into a brand powerhouse with portfolio across age and gender. This satisfactory performance on account of our inherent brand strength especially for “Brand Killer” and addition of Kraus – our womenswear focused venture, despite a challenging consumer demand environment due to unseasonal heavy rains in August and September, demonstrates our ability to adapt, innovate, and thrive in a dynamic market.”
He further said, “Looking ahead, we believe the market should be supported by encouraging festival season consumption in light of which we continue to widen our national footprint and focus to expand our presence with Brand led EBOs. Despite difficult external environment, we believe our inherent strengths and continued focus on innovation, customer-centricity and strategic partnerships will propel our growth trajectory and solidify our market leadership. Despite the inherent short terms challenges, the long term growth opportunity in the Indian fashion apparel industry remains positive and we will continue to stay focused on pursuing profitable growth with our strong foundation and focused growth strategy.”