Q1FY22 Result Update - KPR Mill - ICICI Direct

Despite pandemic related challenges, KPR Mills has reported yet another solid operational performance in Q1FY22.

- Revenue grew 67% YoY (down 19% QoQ) to Rs. 903.7 crore. Textile segment (87% of revenue) grew 85% YoY while sugar division (12% of revenues) de-grew 1.9% YoY

- Gross margins improved 458 bps QoQ to 46.9% and continue to remain higher than its average level of 42-43% owing to enhanced yarn spreads

- EBITDA margins expanded 90 bps QoQ to 24.9%. This is the fifth consecutive quarter wherein KPR has maintained 20%+ EBITDA margins

- Announced stock split of one equity share of Rs. 5 into five equity shares of Rs. 1 each

Key triggers for future price performance

- KPR has two major capex projects in the pipeline worth Rs. 750 crore towards garmenting facility (Rs. 250 crore) and ethanol facility (Rs. 500 crore)

- Capital deployment towards value accretive projects (targeted RoCE: garmenting: 30%, ethanol: 22%) augurs well for KPR

- Robust opportunities in US market gives strong visibility for sustained growth in exports (currently Europe is the key market for garment exports)

- We model revenue, earnings CAGR of 18%, 21%, respectively, in FY21-23E with higher RoCE of 26%

For details, click on the link below: Link to the report

Shares of K.P.R. Mill Ltd. was last trading in BSE at Rs. 1979 as compared to the previous close of Rs. 1957.8. The total number of shares traded during the day was 6329 in over 1709 trades.

The stock hit an intraday high of Rs. 2010.7 and intraday low of 1971.8. The net turnover during the day was Rs. 12570803.

Source : Equity Bulls

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