Kewal Kiran Clothing - Revenue Recovery Driven By Higher Online Sales: ICICI Direct
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ICICI Direct Report
Kewal Kiran Clothing Ltd. from ~93% decline in revenue in Q1 FY21, witnessed a sharp recovery in sales with de-growth being restricted to only 7% in Q3 FY21.
On a sequential basis, revenue grew 75% to | 118.0 crore in Q3 FY21 on account of improved festive demand.
Change in channel mix (sales mainly through online and LFS) and higher discounting translated in gross margins contracting significantly by 1160 basis points YoY at 36.8%.
However, significant curtailment of operating overheads (employee and selling expenses down by 26% YoY and 70% YoY, respectively) led to Ebitda margins improving marginally by 80 bps YoY to 11.4%, with Ebitda remaining constant YoY at | 13.5 crore.
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