Kitex Garments hit an upper circuit of 10% at Rs 164.10 after the company said that Telegana government has approved its expansion plan.
"The proposal submitted by Kitex Garments before Government of Telegana towards expansion plan has been approved," the company said in exchange filing. The Government order will be issued within a few days, it added.Ealier in July, Kitex Garments announced that it proposed to invest Rs 1,000 crore to set up apparel manufacturing facilities in Telegana which will create 4,000 additional employment opportunities over the next 2 years. With liberal government policy, availability of raw material and various incentives offered by the state, the company expects to reduce its operating cost, shorten payback period and drive profits, the company had said.
Kitex Garments' consolidated net profit jumped 62% to Rs 20.51 crore on a 71.6% surge in net sales to Rs 153.78 crore in Q1 June 2021 over Q1 June 2020.
Kitex Garments is engaged in the manufacture of fabric and readymade garments. The company operates through two business segments: garments and fabric. The firm also exports cotton garments principally infants wear.
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