SKNL sees improved margins, revenue on lower costs

Textiles firm S Kumars Nationwide (SKNL) expects operating margins to improve by 200 basis points this fiscal on lower cotton prices and growth in its international businesses. It expects revenue to grow 25-30% in the current financial year ending March 2012 led by expansion in its domestic market. The firm posted a 44% rise in net profit for the year ended March on a 35% growth in net sales. Its operating margin was largely stable around 20%.

The international business, with a strong portfolio of brands such as Hart Schaffner Marx, Hickey Freeman, Exclusively Misook, Austin Reed, Jag Jeans, Bobby Jones and DKNY, grew 86.6% in FY11, accounting for 25% of total sales.