Givo Ltd Sector Industry

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1 Page 1 of 5 Consumer Cyclical pparel Manufacturing Company Profile Givo Ltd was incorporated on May 21, The company is an international fashion wear company in India set up by Marzotto of Italy, who is the promoter of Hugo Boss and Valentino. The registered office of the company is located in Gurgaon, Haryana. Its production unit is located within close vicinity of New Delhi. Stock Price Price in Rs. Last Close Price 3.46 (04/02/2016) 52 Wk High/Low 4.76/1.57 Market Cap (Cr.) (29/01/2016) vg. Volume (1 Mo) (Rescaled to 100 for ease of comparison) Givo is led by Mr. Karan Singh Thakral, the Chairman and Director; Mr. Praveen Saran, the Chief Executive Officer; and Mr. R. K. Sharma, the Chief Financial Officer, Secretary and Compliance Officer along with the other directors. The promoter holding in the company constitutes 74.3% of the total share capital. Institutional investors hold a total of 3.7% and the non-institutional investors hold 22%. Business Overview Givo is engaged in the manufacture and supply of readymade garments. The company has the capacity to produce 600 jackets and 800 pairs of trousers in a single day. It supplies its products in the domestic markets and also exports them to US, Canada, Europe, and the Middle East markets. It also has a quality control department to check the quality of the garments that it manufactures at its owned units. lthough it has been designed for large orders previously, it has strengthened its ability to take up small orders at short notice. It also has the ability to produce the complete variety of men s wear at low prices with reasonably good quality within specified schedules. With the expansion of network of major chain stores and expanded retailing, the demand for readymade garments is expected to increase continuously at a steady pace. The company is also confident to meet the challenges posed by market competition by increasing its productivity, expanding sales and exploring viable domestic as well as overseas markets. Financials Revenue Gross Margin % Operating Income Operating Margin % Diluted EPS Book Value Per Share Operating Cash Flow Capital Expenditure Free Cash Flow Profitability Return on ssets % Return on Equity % sset Turnover Net Margin % Financial Leverage Financial Health except Debt/Equity (Ratio) Long Term Debt Total Equity Debt/Equity Working Capital Report as of 05-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

2 Page 2 of 5 Consumer Cyclical pparel Manufacturing Income Statement Total Revenue Cost of Revenue Gross Profit Operating Expense Operating Income Pre-tax Income Tax Provision Minority Interests Balance Sheet Stock Holders Equity Long Term Debt Total Non-Current Liabilities Payables Total Liabilities Net PPE Goodwill and other Intangible ssets Total Investments Total Non-current ssets Trading and Other Receivables Inventory Cash and Cash Equivalents Total ssets Cash Flows Depreciation and mortization Change in Working Capital Operating Cash Flow Capital Expenditure Investing Cash Flow Net Common Stock Issuance Net Issuance Payments of Debt Cash Dividends Paid Financing Cash Flow Changes in Cash Report as of 05-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

3 Page 3 of 5 Consumer Cyclical pparel Manufacturing Financial Performance In FY 2014, Givo s revenues increased by 25.2% to INR crores from previous year. The operating income for the company grew 4.8% amounting to INR 0.45 crores versus a year ago, while the operating margin decreased by 66 basis points to 2%. The company posted net profit of INR 0.23 crores as compared to previous year, showing an increase in profit by 3.1%. Revenue Growth Key Risks Givo suffered from failures to compete with China, Bangladesh and Sri Lanka in the low price product segment. The ongoing manpower availability and rising power costs continue to pose great risks for the business, as well as making overall Indian companies uncompetitive. lso, providing large employment in the country remains a challenge as the company is operating in a labour-intensive industry. Besides being major export segment for the country, the deficient supply of infrastructure and other social inputs continue to be a hurdle in its further growth. Gross Margin Competitors Its two major competitors include Spice Islands pparels Ltd and Spenta International Ltd. Spice Islands pparels Ltd is engaged in the manufacturing and selling of knitted and woven garments. Its products include shirts, blouses, skirts, T- shirts, polo shirts and sweatshirts. Its head office is located in Mumbai, India and other locations include Bangalore, Tiruppur. Its revenues grew by 49.1% in FY 2015 totalling INR crores versus last year. Spenta International Ltd manufactures and exports knitted cotton socks in India. Its products are suitable for men, women and kids. Its registered office is located at Palghar in Thane district of Maharashtra. The company s revenues slipped by 5.5% to INR 35.6 crores versus last year. Operating Margin Report as of 05-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

4 Page 4 of 5 Consumer Cyclical pparel Manufacturing Industry Overview India s textiles sector dates back to several centuries making it one of the oldest industries in the Indian economy. This sector is one of the most significant contributors to India s exports with approximately 11% of total exports. Due to its labour-intensive nature this industry is one of the largest employers in India. The industry realised export earnings worth USD 41.4 billion in FY 2015, a growth of 5.4% as per The Cotton Textiles Export Promotion Council. The Indian textile industry constitutes the hand-spun and handwoven textiles sectors and the capital-intensive sophisticated mills sector, and has the capacity to produce a suitable range of products for markets both within India and across the world. The Indian textiles industry is estimated at around USD 108 billion, and is expected to reach USD 223 billion by The industry being the second largest employer after agriculture, provides jobs to over 45 million people directly and 60 million people indirectly. The Indian textile industry contributes approximately 5% to the country's Gross Domestic Product and 14% to overall Index of Industrial Production. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue Expenditure Interest PBDT Depreciation PBT Tax Net Profit Equity EPS Return on Invested Capital (ROIC) *Standalone figures Report as of 05-Feb Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

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