"KPR Mill Achieves Record High Garment Order Book of ₹1,100 Crore"

KPR Mill Ltd, a leading textile company headquartered in Coimbatore, has disclosed a surge in demand for both yarn and garments, with the company boasting an impressive garment order book valued at ₹1,100 crore, as stated by Managing Director P Nataraj.

Speaking on the company's performance, Nataraj highlighted that the current order book stands at an all-time high, with significant inquiries circulating. Notably, large garment players in the Tirupur region are faring well, although smaller players are facing challenges. While there is slight sluggishness in yarn business margins, the volume remains strong. Chief Financial Officer PL Murugapppan, in a recent discussion with analysts regarding the company's third-quarter financial results, mentioned that margins might be slightly lower than usual due to these factors.

Murugapappan further elaborated on the company's strides in the international market, stating that Walmart has been added as a new customer for US exports. Additionally, KPR has increased volume to GAP for both US and European destinations, with GAP emerging as a significant customer in both regions during the quarter.

Despite facing various challenges, KPR managed to generate a consolidated revenue of ₹4,418 crores and a net profit of ₹592 crores during the nine months ending December 31, 2023. Factors affecting financials included a decline in cotton prices leading to reduced selling prices for yarn, along with subdued demand in international markets.

However, the company faced setbacks during December due to cyclones in Tamil Nadu, which led to the holding up of garment shipments worth approximately ₹100 crore.

Looking ahead, Nataraj expressed optimism about the current quarter, citing encouraging signs. He highlighted the company's modernization and expansion plans, including the development of garment processing capacity with an outlay of ₹250 crores, along with a ₹100 crore investment in a solar power plant with a capacity of about 25 MW, which will augment the existing solar and wind capacity to about 100 MW.

Murugappan emphasized that the company's exports haven't been significantly impacted by the Red Sea issue, as most exports operate on a Fee on Board (FOB) basis, where customers take responsibility for shipment, primarily in the garment segment.

HBL