Monday, October 20, 2008

Textile and Retail Sector – ICICI Direct

by Bharat Mudgal 0 comments



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Textile sector
We expect our ICICIdirect textile universe to report revenue growth of 28.22% YoY led by JBF
Industries (29.74%) and Bombay Rayon Fashions (37.14%). EBIDTA is estimated to grow by 52.74% led
by JBF Industries (37.14%) and Bombay Rayon Fashions (38.2%). Net profit is expected to grow
18.78% on account of de-growth expected in Kewal Kiran Clothing (-24.9%). As a result, PAT margin is
expected to decline by 73 bps.

Retail Sector

Revenue expected to grow by 40.09% QoQ

We expect our ICICIdirect retail universe to report QoQ revenue growth of 40% led by an estimated
105.42% QoQ growth in Koutons Retail. This is expected to be led by additional retail space under
operations. Also, the September quarter witnesses major stock clearance/monsoon discounts across
formats leading to impulse purchases. Revenue per square feet (psf) is expected to register 24.48%
growth QoQ for our universe due to better conversion of shelf space mainly led by Koutons Retail.

Download - ICICI+Direct+Textile+and+Retail+Q2FY09+Earnings+Preview


ICICI+Direct+Textile+and+Retail+Q2FY09+Earnings+Preview - Get more Business Documents

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Bharat Mudgal
Analyst, stockMode Networks
India
bharatmudgal@stockMode.com

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