Kitex Garments’ shares tanked about 14 per cent during the early trade on Wednesday, after the company reported a disappointing performance in the period ending December 31, 2022. The company reported a loss in the December 2022 quarter.
Kitex Garments clocked a net loss of Rs 4.23 crore for the October-December 2022 period. The company had reported a net profit of Rs 34.69 crore in the year-ago period. In the September 2022 quarter, its net profit stood at Rs 21.60 crore.
Kitex Garments reported a 67 per cent year-on-year (YoY) decline in the revenue from operations at Rs 68.22 crore for the third quarter of the ongoing fiscal. The company’s operational revenue stood at Rs 202.91 crore in the same quarter last fiscal. On a sequential basis (QoQ), revenue declined 52 per cent from Rs 141.67 crore in September 2022 quarter.
Shares of Kitex Garments tanked 14 per cent Rs 152.20 on Wednesday, hitting its new 52-week low, following the announcement of results. The scrip had settled at Rs 176.25 on Tuesday.
Kitex Garments’ shares have plunged more than 20 per cent in the year 2022 so far, whereas the counter is down 35 per cent in the last six months. The stock has wiped out more than half of its value from its 52-week high at Rs 308.90, hit in April 2022.
Kitex Garments reported a 33 per cent fall in the net profit at Rs 54.19 crore for the nine months that ended on December 31, 2022. The company reported a net profit of Rs 80.92 crore in the same period last year. Its revenue from operations declined 14 per cent to Rs 459.29 crore during the period under review.
In its statement, the company has cited global recession fears as the key reason for the performance. All major retailers are doing distress sales in anticipation of further recession by giving discounts to the tune of 70-90 per cent, said the company.
“The company expects this to be temporary phenomena only up to the end of Q4 2022-23 and the company’s orders book in queue for 2023-24 indicates achieving a better performance in Qi and normal performance by Q2,” it added further.
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