Kitex Garments Limited — Important, 28-02-2025: Updates

Kitex Garments Limited has issued its unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2024, indicating a total income of ₹70,361.20 Cr, which reflects a growth from ₹45,343.39 Cr in the previous corresponding period. The company reported a net profit of ₹11,334.03 Cr, compared to ₹4,219.68 Cr in the prior year. Key expenses totaled ₹55,254.26 Cr, up from ₹39,647.90 Cr, largely driven by increases in raw material, employee benefits, and other operational costs.

The group’s investment in the associate, Kitex USA LLC, remains at ₹2,776.24 Cr, and there’s a significant trade receivable of ₹11,684.19 Cr linked to this investment. However, the associate has been incurring losses, which has raised concerns regarding the recoverability of these receivables. The management assesses that the fair value of investments is higher than their carrying value, suggesting stability despite reported losses. Looking ahead, with expansions and new business engagements, the company shows a positive outlook, indicating potential growth while urging investors to monitor developments closely.