Earnings | KPR Mills ltd.(NSE:KPRMILL): Q3FY23 Results Out; Total Income rise 12% YoY

KPR Mills ltd.(NSE:KPRMILL) is a leading vertically integrated textile company based in India. The company is engaged in the manufacturing and sale of yarn, knitted fabrics, and ready-made garments for both domestic and export markets. KPR Mills has a strong focus on sustainability and has taken several steps to reduce its environmental impact, such as using renewable energy sources and implementing eco-friendly manufacturing processes.

KPR Mill has reported positive Q3FY23 results with an 11% YoY growth in revenue to Rs 1367.9 crore. The sugar segment, which accounts for about 35% of the EBIT, saved the day for the company. Revenue from the textile segment (80% sales) grew 10% YoY to Rs 1152.3 crore. The garmenting division is expected to have clocked in a volume of around 30 million pieces in Q3FY23, up 9% YoY. However, volumes for the yarn and fabric division are expected to have declined by about 20% YoY due to weak global demand for the yarn segment.

EBITDA margins for the quarter declined 540 bps YoY to 18.8%, with the absolute EBITDA declining by 12% YoY. The textile division’s EBIT margins declined by 870 bps YoY to 13.3% due to negative cotton yarn spreads, while the sugar segment reported an EBIT of Rs 85 crore (up 2.6x), which aided overall margins for the company.