Nandan Denim Reports PAT of Rs.15.61 Crore, up 30.5% in Q2 of FY 2015-16

Nandan Denim Limited (NDL), India’s second largest integrated denim fabric manufacturer has reported a net profit of Rs.15.61 crore for the Q2 of FY 2015-16 as against Rs.11.95 crore in the corresponding period of 2014-15, a rise of 30.5%. Net sales for second quarter ended September 2015 at Rs.294.53 crore were higher by 6.4% over previous fiscal’s same quarter net sales of Rs.276.94 crore. Company reported healthy EBITDA and PAT margin in Q2 FY16 at 17.2% and 5.3% respectively. EPS for Q2 FY 16 stood at Rs.3.43 (Face value of Rs. 10 per share).

Financial Highlights

(Rs. Crore)

For the six months ended September 2015, company reported a net profit of Rs.31.11 crore against a net profit of Rs.23.43 crore in the corresponding period last year, growth of 32.8%. Net sales in first half of FY 2015-16 at Rs.575.04 crore were higher by 6.4% compared to Rs.540.63 crore in the first half of previous fiscal. For H1 FY 2015-16, EBITDA margin stood at 16.7% and PAT margin at 5.4%.

Deepak Chiripal, CEO, Nandan Denim Limited said, “We are a learning organisation where we learn new dimensions of business every day. We are building an organisation that is agile to respond to the market forces and resilient enough to stand any possible adverse situation. We are investing in technology and manpower to make a power house where quality rules at the highest hierarchy”

“Company is following its well defined charter of growth and we are pleased with the performance so far. A disciplined approach in line with the long term strategy would enable us to further cement our position in the industry. The Company has made a significant progress on the proposed capacity expansion of Rs.612 crore that is expected to be on stream in Q1, FY 17. The major CAPEX orders have already been finalised and civil activities are in full swing.”

About Nandan Denim Ltd (www.nandandenim.com)

Nandan Denim Limited (NDL) is India’s second and world’s fifth largest integrated denim fabric maker. Company commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. Nandan Denim currently engages in manufacturing of denims, cotton fabrics and khakis.

NDL is a part of leading conglomerate, Chiripal Group, established in 1972 and is currently diversified across several businesses like Textiles, Petrochemicals, Chemicals, Packaging, Infrastructure and Education.

Headquartered in Ahmedabad, Gujarat, NDL has expanded its capacity from 6 MMPA to the intended capacity of 110 MMPA over the period of last 10 years. Further, company has earmarked a capacity expansion plan to strengthen its domestic market share, expand its exports business and have an increased focus on value-added segments. Post expansion, NDL will become the largest denim manufacturer in the country and the fourth largest in the world. 

The Company has a state-of-the-art manufacturing facility unit near Ahmedabad, Gujarat and exports its denim fabric to over 28 countries. A team of 3,000 passionate & motivated individuals drive Nandan Denim Ltd.

The company is listed on BSE and NSE. For the year ended March 31, 2015, Nandan Denim Ltd posted net profit of Rs.51.4 crore on net sales of Rs.1,096.5 crore. In the last 5 years, company has managed strong growth with CAGR of 21% in sales and 31% in net profit.