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Rupa & Co Q2 results: Net profit rises 17% to Rs 53 crore

Mumbai: Rupa & Company Limited, a knitwear firm posted a 17 per cent increase in net profit at Rs 53 crore during the quarter ended September compared, helped by higher sales and cost reduction strategies. The innerwear company saw sales increase 21 per cent to Rs367.5 crore in the fourth quarter.

The company said it has seen improved traction during the festivities and expects a much better second half of the year.

“The company is focusing on increasing sales volumes with changes in product mix. The company’s plans to increase its share in the premium and super-premium category, improve focus on women wear, casual wear, and thermal wear, and foray in newer markets with higher penetration in the existing markets,” said Dinesh Kumar Lodha, chief executive officer at Rupa & Co. “With a focus on increasing the distribution network across India, we expect this cost to remain at a similar level going ahead.

The Kolkata-based firm said EBITDA and profit increased on the back of improved operating efficiencies and cost reduction strategies adopted by the company.

The innerwear category, estimated at Rs 30,000 crore, accounts for 10 per cent of the total apparel market and is expected to grow at a compounded annual growth rate of 10 per cent over the next decade to Rs74,258 crore. Experts, however, feel innerwear is evolving from being functional to a segment with a fashion quotient. While it has been shifting from a price-sensitive category to a brand-sensitive one, the pandemic year has favoured mass-priced products.

“With a focus on improving product mix, comprehensive product portfolio, deepening reach along with aggressive management focus, we believe Rupa is well poised to outperform industry growth and gain market share,” said a recent report by Phillip Capital.

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