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Rupa & Company Limited reports Highest ever Revenues & Profits in FY21

* Profit after tax stood at Rs 175 crores, a growth of 183%

* EBIDTA stood at Rs 257 crores, a growth of 126%

* Revenue from operations stood at Rs 1,313 crores, a growth of 35%

* Gross Profit stood at Rs 459 crores, a profit of 34%

India, 31^st May 2021; Rupa & Company Limited, one of the leading and largest knitwear brand in India, engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear and fashion wear announced its Audited Financial Results for the Quarter and year ended 31^st March 2021

Dividend: The Board of Directors have recommended a Total Dividend of Rs. 5/- per equity share (including Dividend of Rs. 2/- per equity share as a mark of gratitude to our shareholders during the pandemic) of Face Value of Re. 1/- each (500% of Face Value) for the financial year ended 31^st March 2021.

Other Highlights:

* Return on Capital Employed (RoCE) is at 30.8%, +1,710 bps YoY

* Return on Equity (RoE) is at 26.8%, +1,610 bps YoY

* Net Debt is Rs. 27 crores, reduced from Rs. 177 crores in FY20

* Cash & Bank Balances are at Rs. 118 crores, improved from Rs. 1.7 crores in FY20

* Net Debt to Equity is at 0.04x, reduced from 0.30x in FY20

* Working Capital Days is at 165 days, Improved by 54 days from FY20; FY20 : 219 days

Commenting on the Results, Mr. Dinesh Kumar Lodha, CEO said,

“Despite the challenges faced due to the pandemic, Rupa & Company recorded its highest ever revenues and profits in FY2021.  This was possible due to increased sales volumes, changes in product mix, improved operating efficiencies and cost reduction strategies.

For FY21, Revenues increased by 35% whereas EBITDA & PAT increased significantly by 126% and 183% respectively. During the year, our Working Capital has reduced by 54 days to 165 days. Going ahead, we expect collection efficiencies which would reduce Working Capital further.

In line with evolving consumer preferences and market demands, the Company has introduced new varieties in each sub-brand. These products have the latest fabric innovations, cutting-edge production techniques, and advanced design elements to give the finest experience of style and comfort to the end-user.

Rupa has a strong PAN India presence. Our strategy is to foray in newer markets by appointing new distributors and building experienced team and further strengthen our share in the existing markets. This would lead to increased investments in brand development across new geographies. During the year gone by, the Company has spent ~4.2% on brand development. We expect branding and advertisement cost to come back to normalcy i.e., 6-8% of revenues in FY22.

The Company’s focus is to increase share in premium and super premium category, improve focus on women, casual, and thermal wear, and foray in newer markets with higher penetration in the existing markets.

We are witnessing a second wave of CoVID-19 infections, and this has once again resulted in disruption to our business as several states have announced restrictions. We expect business to start gaining traction in June 2021 and expect higher than industry growth for the coming year.”

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