Q1 2025 Kewal Kiran Clothing Ltd Earnings Call Transcript
Key Points
- Successful acquisition of a 50% stake in Kraus Casuals Private Limited, enhancing the company's presence in the women's denim and casual wear category.
- Encouraging results from the recently introduced Kidswear Clothing brand, Junior Killer, indicating potential growth in the children's apparel segment.
- Net addition of 17 Exclusive Brand Outlets (EBOs) in Q1 FY25, bringing the total to 505 EBOs, which is expected to enhance brand visibility and national footprint.
- Strong in-house manufacturing capabilities and robust supply chain management, positioning the company advantageously in the current geopolitical climate.
- Optimistic outlook for the upcoming quarters, driven by anticipated market improvement, upcoming festive and wedding seasons, and government focus on consumption revival.
- Q1 FY25 started on a muted note with sales of INR151 crores and an EBITDA of around INR28 crores, impacted by continued slowdown in consumer sentiments and prolonged heatwave conditions.
- Lower footfall during the period due to adverse weather conditions and fewer weddings, negatively affecting performance.
- Non-retail performance was lower, particularly in the Multi-Brand Outlets (MBO) channel, which closely responds to market sentiment.
- Negative same-store sales growth (SSG) of around -10% for the quarter, indicating challenges in driving sales growth in existing stores.
- Despite adding 52 stores in the last 15 months, the new stores have not significantly contributed to the overall revenue of the EBO channel as expected.
Ladies and gentlemen, good day, and welcome to Kewal Kiran Clothing Limited Q1 FY25 earnings conference call. (Operator Instructions)
Before we begin a brief disclaimer. The presentation, which Kewal Kiran Clothing Limited has uploaded on the stock exchange and their website, including the discussions during this call contain or may contain certain forward-looking statements concerning Kewal Kiran Clothing Limited business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to the management of Kewal Kiran Clothing Limited. Thank you, and over to you, sir.
Good morning, everyone. It's a pleasure to welcome all the participants to the earnings conference call of FY25. This is Pankaj Jain, President, Retail. Joining us on this call is Hemant Jain,
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