Kitex Garments Limited , a prominent player in the textile industry, has made headlines with a series of significant announcements, including a correction to its demerger disclosure and the release of its financial results.

Demerger Disclosure Correction

The company issued a correction to its Scheme of Arrangement disclosure between Kitex Childrenswear Limited and Kitex Garments Limited. The rectification addressed a typographical error concerning the turnover percentage. The corrected statement now reads '54.50% to the total turnover of the Resulting Company in the immediately preceding financial year', instead of the previously mentioned '54.50% of the total turnover of the Demerged Company'.

Financial Performance Highlights

Kitex Garments announced its audited standalone and consolidated financial results, showcasing robust growth:

The company demonstrated substantial growth across key financial metrics. Revenue surged by 58.63% to ₹1,001.30 crore, up from ₹631.20 crore in the previous year. EBITDA saw a remarkable increase of 91.03%, reaching ₹219.30 crore. Net profit more than doubled, growing by 143.19% to ₹135.70 crore, while earnings per share (EPS) improved significantly from ₹2.82 to ₹6.95.

Dividend Announcement

In light of the strong financial performance, the Board of Directors has recommended a final dividend of ₹1.50 per equity share. This dividend proposal is subject to shareholder approval at the upcoming Annual General Meeting.

Demerger Details

The company provided additional details on the demerger of its Textile Business Division:

• The demerged division reported a turnover of ₹349.64 crore.
• Under the scheme, shareholders will receive 9,706 equity shares of face value ₹1 each in the Resulting Company for every 100 shares of face value ₹100 each held in the Demerged Company.

Auditor's Opinion

The company's auditors issued a qualified opinion on the standalone financial results, citing concerns over the recoverability of a ₹27.76 crore investment in associate Kitex USA LLC. However, the consolidated results received an unmodified opinion from the auditors.

Outlook

Kitex Garments' strong financial performance, coupled with strategic moves like the demerger of its Textile Business Division, positions the company for potential growth. The significant increase in revenue and profitability demonstrates the company's resilience and effective management strategies in a competitive market environment.

Investors and stakeholders will be keenly watching how the company leverages this growth momentum and manages the demerger process to create long-term value.

Kitex Garments Limited , a prominent player in the textile industry, recently held its 32nd Annual General Meeting (AGM) on September 28, 2024, where shareholders approved two significant board appointments, strengthening the company's leadership team.

New Independent Director Appointed

Mr. A K Mathew has been appointed as an Independent Director for a five-year term, effective from August 14, 2024. Mathew brings a wealth of experience to the board, having served in key positions at public limited companies. His impressive track record includes roles such as:

• General Manager at Hindustan Insecticides Ltd
• Managing Director at The Travancore Cochin Chemicals Ltd

Mathew's extensive background in general management is expected to contribute valuable insights to Kitex Garments' strategic decision-making processes.

Whole-Time Director Re-appointed

In addition to the new appointment, shareholders approved the re-appointment of Mrs. Sindhu Chandrasekharan as Whole-Time Director for another five-year term, commencing March 16, 2025. Chandrasekharan has been an integral part of the Kitex Group since 1995, currently serving as Assistant Vice President (Finance). Her areas of expertise include:

• Treasury management
• Cash management systems

With nearly three decades of experience within the company, Chandrasekharan's continued presence on the board ensures continuity and deep institutional knowledge.

Board Independence and Compliance

It's worth noting that both Mr. Mathew and Mrs. Chandrasekharan have been confirmed as not being related to any existing company directors. This underscores the company's commitment to maintaining an independent and diverse board composition.

Furthermore, the company has stated that neither of the appointed directors has been debarred from holding directorship positions by any regulatory authority. This affirmation aligns with good corporate governance practices and regulatory compliance.

The approval of these appointments at the AGM reflects shareholders' confidence in the chosen directors and their potential contributions to Kitex Garments' future growth and governance.

As Kitex Garments moves forward with its refreshed board, stakeholders will be keen to observe how these leadership changes may influence the company's strategies and performance in the competitive textile industry.