Driven by a surge in demand and favorable global market conditions, Kitex Garments is poised to achieve record turnover and profits in FY25, says Sabu M Jacob, Chairman and Managing Director. The company’s capacity utilisation is at its peak, with factory orders fully booked until June 2025.
In Q1 FY25, Kitex Garments’ revenues increased by 32 per cent Y-o-Y toRs 195.02 crore, compared to Rs 147.84 crore in the same period last year. This growth was a result of a strong demand from existing customers. The company’s EBITDA margin rose to 23.77 per cent during the quarter from 11.19 per cent in Q1FY24. Its net profit more than doubled, reaching Rs 29.95 crore, compared to Rs 7.99 crore in the previous year's quarter.
Kitex Group is currently developing integrated textile units in Telangana under Kitex Apparel Parks (KAPL). To be executed in two phases, the project will cost approximately Rs 2,890 crore.
Originally expected to complete a year ahead of schedule, the first phase of this project is now set to be finished by Mar’25, with spinning operations in Warangal starting by Sep’24. The second phase is projected to be completed by Mar’26.
According to ICRA, while the large-scale expansion exposes the Group to execution and demand risks, debt protection metrics are expected to remain subdued in FY25 due to ongoing debt-funded capital expenditure. However, these metrics should improve from FY26 once the first phase of operations commences. Government subsidies, once operations begin, are expected to support liquidity, though timely receipt of these subsidies remains crucial.
