April 22, 2024
Apparel, Fashion, Retail

KPR Mill Has Rs 1,100 Crore Worth Apparel Orders In Hand

“Demand for both yarn and garments are good at Coimbatore based KPR Mill and it has in hand apparel orders totaling to Rs 1,100 crore,” MD P Nataraj said.

“The order book is at an all time high now, and a lot of inquiries are going around,” KPR’s CFO PL Murugapppan, told analysts while discussing the company’s third quarter financial results.

According to the CFO, large garment players are doing well in the Tirupur region; only the smaller players are having issues.

“There is a little sluggishness in the yarn business, but volume is good. The margin will be little lesser than the regular margins,” he added.

PL Murugapapan said KPR added Walmart as a customer, while it increased volumes for GAP, in both the US and European Union,” the Hindu reported.

During the nine months ended December 31, 2023, KPR generated consolidated revenue of Rs 4,418 crores and net profit of Rs 592 crores.

The factors that impacted the financials during the period were fall in cotton prices resulting in reduced selling price for yarn during the quarter.

The company is expanding the garment processing capacity with an outlay of Rs 250 crores and is also setting up a 25 MW solar power plant at an investment of Rs 100 crores.

“With this investment, our solar and wind capacity will reach about 100 MW,” Murugappan added.

“We are not seeing much of an impact on the Red sea issue because most of our exports are all free on board (FOB) basis, where the customer takes responsibility for the shipment, mainly garments,” he stated.

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