K.P.R. Mill Limited CC-Mar24.pdf · 2024-05-06
Sir, K.P.R. has been one of our portfolio companies for more than 10 years. Sir, just if I observe the way in which we have grown from just pure yarn to fabric and th en to value added garments, but in the last 3 years our EBITDA has been in that range of INR1,300 crores mark and PAT has been in the range of about INR800 crores mark. Now top line has grown from INR 4,800 crores to INR 6,000 crores etc, but our EBITDA margins have come down. So I want to understand is there any structural issue which is causing this kind of thing because 3 years in a row, we have not seen EBITDA consolidate or PAT consolidate. Now Europe is a challenge where about 60% of our revenue or e xports are coming through China. US. is about 20%. So I want to understand, is there anything from the demand side or is there anything from extra new competition? Why are we consolidating at these levels? If you could explain this or make me understand this much better.
Okay. So we are seeing some challenges on the demand side. That's the reason why we are seeing this consolidation and what is it that is going to change going forward?