Nandan Denim fares well, expansion on
Nandan Denim Limited (NDL), poised to be Asiaâ€™s largest denim fabric manufacturer has reported a net profit of Rs 15.65 crore for the Q3 of FY 2015-16 as against Rs 12.63 crore in the corresponding period of 2014-15, a rise of 23.8 per cent.
Nandan Denim Limited (NDL), poised to be Asiaâ€™s largest denim fabric manufacturer has reported a net profit of Rs 15.65 crore for the Q3 of FY 2015-16 as against Rs 12.63 crore in the corresponding period of 2014-15, a rise of 23.8 per cent. Net sales for third quarter ended December 2015 at Rs 287.37 crore were higher by 3.5 per cent over previous fiscalâ€™s same quarter net sales of Rs 277.60 crore. Company reported healthy EBITDA and PAT margin in Q3 FY16 at 16.7 per cent and 5.4 per cent respectively. EPS for Q3 FY16 stood at Rs 3.44 (Face value of Rs 10 per share).
For the nine months ended December 2015, company reported a net profit of Rs 46.75 crore against a net profit of Rs 36.06 crore in the corresponding period last year, growth of 29.6 per cent. Net sales in nine months of FY 2015-16 at Rs 862.41 crore were higher by 5.4 per cent compared to Rs 818.22 crore in the same period in previous fiscal. For 9 months of FY 2015-16, EBITDA margin stood at 16.7 per cent and PAT margin at 5.4 per cent.
The Board of Directors have recommended 8 per cent Interim Dividend for the current Financial Year. During the quarter, pursuant to Shareholders Approval in the AGM and post in-principal approval granted by BSE and NSE, an Application money, being 25 per cent of the total consideration, has been received from M/s. Polus Global Fund towards 25,00,000 fully convertible warrants which shall entitle the warrant holder to acquire equivalent number of equity shares of Rs 10 each of the company at a conversion price of Rs 200 per equity share.
Deepak Chiripal, CEO, Nandan Denim Limited said, â€œDenim, despite being a staple fabric has got negligible penetration in the Indian market as compared to economies of similar population, offering huge untapped market opportunities. Post completion of the expansion plans, Nandan Denim Ltd, with much larger production capacities and product baskets would be optimally placed in competitive position to cater to the larger demand arising from India and overseas markets.â€
Nandan Denim Limited (NDL) is worldâ€™s fifth largest integrated denim fabric maker. Company 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 Asia 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.