Dear @sethufan
You had claimed that there are certain “tax advantages” of keeping money in EEFC a/c? I am not sure how. Can you please help me understand?
Thanks and warm regards,
Dear @sethufan,
There has been no response from you, despite multiple requests, even as you have posted in the forum elsewhere. Consequently I am only left to conclude that your assertion “that there are certain “tax advantages” of keeping money in EEFC a/c” is incorrect.
I just hope it was not wilfully misleading.
I believe that as forum members we carry a basic obligation to be factual and honest in our assertions / facts / data. The forum’s reputation depends on it. We know who said, “It takes 20 years to build a reputation and 5 mins to ruin it” 
Warm regards,
KItex thread is being closed temporarily for Clean-up/Maintenance along with Kaveri, Just Dial and Vaibhav Global threads.
Please bear with us for a few days, while the clean-up exercise is on.
Let us see if pruning works;
if that doesn’t we may have to start restricting posting rights for folks
We are hoping that we don’t have to resort to the last resort!
3 Likes
There have been some inevitable delays in opening back locked threads after cleanup - mostly unavoidable. Many folks have written in - some even angrily - attributing uncharitable motives 
even -to VP Core Team.
So here’s a brief again on the reasons we had to resort to such measures (after repeated warnings had failed), for everyone’s benefit - so we get everyone to comply to Team VP Culture/Ethos and Forum Guidelines. And why we think the thread can now be opened up again, as main purposes have been served.
-
All negatives/discordant points that did not add-up were freely allowed to be made. We don’t think there was a single serious reader of this thread who wasn’t aware of the (grave) issues/doubts being raised. Genuine points and counterpoints, doubts, missing gaps/clarification from Management were made. Some of the issues (unless clarified by Management) were indeed grave, and no wonder passions were running high
-
However, just a handful of folks carried this to the extreme a) ad-nauseam repetitions of the same allegations/opinions (these ceased to be issues) b) blatant allegations of outright fraud were being claimed without attempting the slightest diligence to ascertain facts c) name-calling and abrasive behaviour d) thread became completely cluttered by the allegations and rebuttal opinions e) it was clear such folks were intent on pushing their “Agenda” at any cost. Consequently Business Dissection - which is the hallmark and unique VP strength- completely took a back-seat.
-
As Administrators/Moderators we intervened repeatedly, politely without any avail. These handful of folks were very new to VP Ethos/Culture and a couple even adopted a couldn’t care less attitude. We had to do something - as the core VP readership was getting turned off from reading the threads - and started complaining that any meaningful value-additive contribution was impossible in the face of the unrestrained/passionate ad-nauseam repetitions, agenda-pushing and its side effects. More threads started getting affected with the common malaise - Too much of NOISE - VP going the MC way? warning bells started getting sounded by genuine well-wishers and loyal readership of VP.
-
We could have taken the easy way out - suspended/terminated membership - and saved us all the trouble. The nuisance would have stopped/abated. However it is another unique Team VP trait - that we value all contributors and their contributions even as we may differ with their methods. We wanted these guys to be around - some of them had indeed ben making significant contributions too - just wanted to find a way to channelise their energies properly
, sensitise them to the side-effects, and nudge them back to value-additive discussions - not be hesitant to use both the stick and the carrot to make new VP Members (understand how much we value, and) adhere to VP Culture/Ethos, rather than lose potentially great Team VP members. -
We found Locking the thread - a viable way forward in our attempts to a) COOL the passions/fights b) get rid of the CLUTTER by deleting endless repetitions c) allow time for corrective actions/CLARIFICATIONS from Management on (grave) issues raised d) bring the FOCUS back on business dissection
As we are aware - the main irritant - the CASH question is addressed to an extent - and everyone should be charitable enough to wait for the Sep Balance Sheet to reflect progress on the Management clarifications.
Let’s bring the FOCUS back on value-additive discussions. Let’s always be polite and tolerant of counter opinions (to ours, no matter how passionate and self-righteous we may feel about our individual positions). Let’s always be conscious - think twice and thrice before posting, if need be - am I ADDING VALUE??
Let’s all be VIGILANT a in not letting discussion quality deteriorate. Please be polite and firm, but do let offenders know why such actions are not valued by Team VP. Use FLAGS liberally, if you want VP Community to stay true to its objectives.
14 Likes
Kitex thread is opened up again.
Admin/Moderators will be very strict this time round with non-value-additive posts. There may not be a second lock-up but Repeat Offenders indulging in the above again - may well be suspended/terminated without warning.
Hoping everyone will take more responsibility as valuable members of the VP Community.
4 Likes
No body is posting once the thread is open 
Kitex results are on 19th, they have indicated to declare interim dividend also this time.
Once all the doubts of cash etc are seen in Q2 BS, can there be further re rating or valuations are already stretched ?
What could be the better use of cash apart from dividend ?
There was some murmur few months back to increase no of shares, hence bonus etc ? these measures if any, can be seen huge +ve by market.
The co will also become debt free by Q2 as per recent con call, So, Q2 numbers and con call is going to be very crucial.
If the cash of 200 Cr remains as cash , this it self will propel earnings by huge number with interest income, even from debt funds etc.
In the last few months Mgnt has done lots of clean up activity to come out clean ( may be due to pressure from Mr Market/well wishers advice etc), cash conversion, brand tie up, own brand launch etc. If the numbers come good in Q2, the story may again begin fresh for many from 2/3 yr view as a min 40 % compounder !
Disc : Invested
Can u tell me how we can attend con call and know it’s schedule and also where we can get the transcript of con call of different companies??
Hope management also closes the merger topic and minority shareholders get a fair deal.
Disclosure- invested
I tried opening June 15 concall there . But it was not opening. It is useful for annual and research reports
Coverage of Kitex in US local media
Notes:
a) As we are aware, Kitex is looking to design its own clothing for the U.S. market, to be sold under its own brand, “Little Star,”
b) It has acquired exclusive rights to sell Lamaze baby clothes in the U.S.
c) The company opened a 4,000-square-foot office on Summit Avenue earlier this month, and officially launched it at a ceremony Tuesday attended by Montvale Mayor Roger J. Fyfe and local business leaders. The office has three employees, and expects that to grow to about 20, including executives, sales people and designers, in the coming months
d) Kitex is foraying into 'design ’ . Let’s see whether it can integrate its manufacturing capabilities with the not so easy aspect of ‘design’. ‘Design’ is completely a different ball game and generally success rate of new players isn’t very high.
e) As per the above link, company is opening its online website
f) Kitex USA will begin selling the Lamaze brand next fall, and Little Star the following spring
g) ‘Organic Clothing’ - It is foraying into this new trend. Need to understand / get info about it- how much sales Kitex is targeting/ cost and margins of organic clothing / Is it a future revenue segment or just an experiment / etc.
h) Linda Harmon, executive director Lamaze International–spoke affirmatively about Kitex regarding its manufacturing and production capabilities
Risks/ Key item to monitor–Creating its own brand would definitely pump up Kitex’s profitability but branding (esp in the land of Brands -US) is not everyone’s cup of tea.
As mentioned in the article, Indian and Chinese players in US suffer from a perception bias wrt quality of products.
Let’s see how things pan out.
Disclosure: Invested from lower levels
12 Likes
Kitex Makes a T20 Dash; Fields Candidates in LSG Elections
Kitex has fielded candidates in all the 19 wards of the Kizhakkambalam panchayat in the forthcoming local body elections. Even though its not as surprising given lot of South Indian promoters are actively involved in politics.
If I have to play a devils advocate here then given there reach and most of the Janta depends on Kitex in some or the other way, they might win the election with majority votes. They may misuse the power.
Unsure about the long term impact on Kitex but any political connection leads to de-rating of business (Sun, Jindals etc)
This is only for informative purpose.
Discl: Holding for last 12 months. Havent bought/sold in last 3 months.
Karvy has started covering Kitex Garments, and have provided details on the US business -
-
Tie-up with Lamaze International: Kitex USA LLC (50-50 JV between KCL and KGL) has signed a brand-licensing agreement with Lamaze International for the sale of infant wear in the US and Canada under the Lamaze brand. Kitex USA LLC will be the exclusive supplier for Lamaze infant wear (for children up to five years old) in US and Canada. The contract validity is till 31 December 2020, extendable for five years.
The management is confident of clocking US$8m sales in CY16 through the brand tie-up and of achieving the minimum guarantee with royalty rates at ~5% of sales. Most of the products manufactured under the Lamaze brand will be made-to order and inventory risk will not be borne by Kitex. -
Own Brand “Little Stars” to be launched by Fall 2016: KGL plans to launch its own brand “Little Stars”, owned by Kitex USA LLC by fall 2016. The management plans to target this brand as a mass market product in US and Canada. It plans to launch the brand through the online route.
-
New Client additions: Recently added two big clients – Children’s Place and Kohl
Source : http://www.karvyonline.com/viewdocument.aspx?DocumentID=11447
3 Likes
Any idea whether Trans Pacific Partnership have any impact on Kitex? Some market participants say it will impact textile and leather exporters from India. Your comments please
1 Like
FYI. Useful info…
Edel- Strategy - Trans-Pacific Partnership errclub Implications for ‘Make in India’.pdf (267 KB)
1 Like
Q2 results just came out
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/BCB8C2DF_B260_46AC_8D38_02B3792F1A36_134645.pdf
Fabulous EPS and net profit numbers
Good results . Growth in NM and EBITDA Margins. Cash and ash equivalents have improved by another Rs 40 cr.
also debt reduction is appreciable