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Kitex Garments stock down 18% on weak Q4 numbers

The company’s revenue for the quarter declined 26% yoy to Rs131cr; net profit was also down 61.5% yoy.

Kitex Garments’ shares fell nearly 18% on Monday after the company announced its fourth quarter results for FY18 on Friday, May 18. The company’s revenue for the quarter declined 26% yoy to Rs131cr, while EBITDA stood at Rs18.2cr, down 61.8% yoy.

The EBITDA margin contracted by 1300bps yoy to 13.87%. Cost of goods sold and employee benefit expenses stood at 44.7% and 19% of sales, respectively. The same stood at 36.3% and 14.1% yoy, respectively. The proportionate increase in the above expenses has resulted in a contraction of EBITDA margins.

Net profit of the company, meanwhile, was recorded at Rs10.3cr, down 61.5% yoy. Kitex Garments manufactures infant apparels and is a exporter of cotton garments.

Kitex Garments Ltd is currently trading at Rs184.55, down Rs41.85, or 18.48%, from its previous close of Rs226.40 on the BSE. The scrip opened at Rs200.05 and has touched a high and low of Rs200.05 and Rs183.10, respectively. So far, 6,37,654 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,505.56cr.