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Why in concall Mr sabu is saying “we will achieve 6% income growth by end of year”. If we achieve 560 instead of 600, it should be around 11-12% growth right ? (Last year income is 511 cr.) Correct me if I am wrong.
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How can it be 380 crore (9months income). When total income sums to only 361.
It is evident that Sabu is not good at fast mental Maths. However, this does not have any relationship with quality of kitex business and what future it can have.
He definitely failed if this was maths exam.
However, his company has delivered excellent performance in last few years. And it may deliver in next few too.
His maths may not improve even then though 
Dollar rupee conversion does makes sense to me. We gain more on currency conversion than on interest (because of fed hike). Of course, it is dangerous/mad to rely on currency conversions in long term, he himself agreed depending upon the situation they will park the money. I dont know the real truth but I believe we cannot deny Sabu’s answer.
Not sure why people are confused about 380cr vs 360 cr. From the call, it was clearly evident that Mr. Sabu includes Other income as part of income for all his calculation. So for last 9 months its 361.46 cr + 18.08 cr = 380 cr appx
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Delay in winter in US impacted Q3 earnings; will make up for it in Q4: Sabu Jacob, Kitex Garments
By ET Now | 1 Feb, 2016, 10.33AM IST
Read more at:
http://economictimes.indiatimes.com/articleshow/50801950.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Recent bounce seems to have some weight behind this but still not convinced enough to add fresh investment. Somehow finding tough to believe the statements of management (read politician). They have revised their targets a little bit lower but even if they achieve, it will be good for retail investor.
Personally I would love to wait for another quarter to add fresh.
PS : I was forced to sell it in huge loss.
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Motilal Oswal Report on Kitex 3QFY16 Results Update
Target Price: 800
A company which has grown its EPS by 30% and price by 50% for the last 10 years and available at attractive valuations carries a favourable risk. IMHO, 52 week low which we have seen recently will not come for so many years if there is no change in the business fundamentals.
One quarter results does not derail the long term growth opportunity which Kitex presents.
And the resignation of CFO is being taken too harshly.
Below are some points which i think one should consider while analyzing Kitex.
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Globally the infant wear market size is USD20 billion. Huge opportunity size for Kitex as it is a niche player in that segment. Being India’s largest exporter of Infant wear and world’s third largest supplier.
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Lamaze brand licensing agreement - shifting from B2B to B2C , brand business, huge opprtunity , margin improvement opportunity
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Moving into launching its own brand Little Star - focussing more on the mass market. This is also something which can lead to improved margins and scalability.
So i feel we still have a compounder here and something whcih can keep growing over multiple years.
Waiting for the con call for some short term clarifications.
Disclosure :- Invested
While I was searching for some shipment deatils of Kitex and other companies, I came across one website which give details of import and export done by companies. I was trying to explore further but was stuck at a point where it was asking for HS code for products being shipped. The website is
https://www.zauba.com/shipment_search
I donno if it is helpful or not. Request if the same can be explored further and make some sense out of it.
Kitex Garments Ltd has informed BSE that the Mr. Chakrapani Mohan, a Non-Executive Director on the Board since 2002 had tendered his resignation which was accepted by the Board by circular resolution on February 08, 2016.
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Great find. Thanks for sharing. This shipment search has become my favorite timepass.
Also got a lot of useful insights from https://www.zaubacorp.com/
I entered just Kitex and shows that main exports are to Canada and not US like I’d expected. They might not be using the name ‘Kitex’ in the consignment or some data scrubbing might be done here because only ‘public’ information is revealed. Does anyone know if this means anything?
I’m glad you find it useful 
I noticed this effect in the context of a different company discussed here at VP - Premco Global which is a supplier to HanesBrands among others. Premco’s results were not as stellar, and it was more or less anticipated given their relationship to HanesBrands.
HanesBrands had this bit of text in their Q4 earnings report, which I shall highlight here:
For the fourth quarter, net sales and core sales for both Innerwear and Activewear decreased as domestic retail traffic declined significantly as historic warm weather enveloped the eastern two-thirds of the United States in November and December. Innerwear core sales in the fourth quarter decreased 2 percent, while Activewear core sales in the quarter decreased 12 percent.
Better details can be found in their Q4 FAQs. HanesBrands was not the only one to report this. This is a slightly more elaborate article at MarketWatch with some commentary on how consumer choices dictated by weather impacts retail sales.
Disclosure: Uninvested currently
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So I’m currently on holiday in Kerala and I spotted a huge hoarding advertising ‘Kitex Dhotis’ yesterday.
Now this really piqued my interest as I was aware that Kitex is only into children’s wear / infant wear. And remembering Sabu Jacob’s commentary from the Q3 concall he mentioned they’re only into 0-24 months infant wear.
So got some time today to search about this product and low and behold - The Kitex name (brand) is directly involved in manufacturing and selling Dhotis,Lungis,Bedsheets and selling school bags, travel bags, men’s and women’s inner wear through different brand names.
I understand all these products are a part of the Kitex Ltd company - a holding of the Anna Group (so I’m really struggling to make the connection with KGL but the Kitex logo is identical as KGL) Having re-read the first 100 posts on this thread again, I found lots of discussions on the KGL and KCL merger/corporate governance but didn’t find anything around Kitex Ltd. So just wondering if this is a new discovery just for me or for everyone?
Here are a few links to the different products of Kitex Ltd
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Why on earth there is a resignation spree in KGL.In last few months 3 key persons - Following the CFO resignation,2 more directors have resigned in last few days.
Smelling anything FISHY here ???
Searching the website which I gave in my post above
https://www.zauba.com/shipment_search
I found that they export lungies to middle east countries. Screenshot attached.
There are many such instances…
The details of the company on the same website which includes details of directors, company borrowing and registration details are there in the link below.
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Yes resignation of key personnel is really worth worrying.
As peter lynch says resignation of key personnel in short duration is worrying signs and need to further dig out.
As Donald stated that he would still give benefit of doubt to the management provided the business quality and opportunity size provided by the business.
I am in agreement with him.
but I think we should really need to dig out and find the reasons of the resignation of the personnel from the management.
We had the managements issue from starting but now things is getting worrisome.
Hope our seniors help to find the questions and reasons for the same.
Disc : holding 7% of my portfolio.
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Story looks simple: the promoter is a strongman of business and politics. Everyone including investors had a good time as long as he ‘managed’ well. Now everyone is jumping from the ship as things seem to be slipping out of his hand. Only an event opposite of black swan kind will pull it out of trouble.
Even without all these, textile exporters might see good times coming to an abrupt end when Yuan devalues by 50%. The Chinese govt. is so scared that it stopped reporting one key data regarding capital outflows abruptly.
Disc: No holding
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