Nandan Denim reports PAT of Rs 7.93 cr in Q2 FY 18-19

Nandan Denim Limited (NDL) has reported a net profit of Rs 7.93 crore for the quarter ended September 2018 as against net profit Rs 5.24 crore in the first quarter of 2018-19. Net sales for the Q2FY19 were at Rs 370.55 crore higher by 4 per cent over net sales of Rs 357.06 crore in the first quarter. The company reported healthy EBITDA and PAT margin in Q2 FY19 at 10.34 per cent and 2.14 per cent respectively. EPS for Q2FY19 stood at Rs. 1.65 (Face value of Rs 10 per share).  

For the six months ended September 2018, the company reported a net profit of Rs 13.16 crore. Net sales in the first half of FY 2018-19 at Rs 727.61 crore. For H1 FY 2018-19, EBITDA margin stood at 12.03 per cent and PAT margin at 1.81 per cent.

Commenting on company’s financial performance, Deepak Chiripal, CEO, NDL, said, “The company’s bottomline improved following approval of tax incentive by Gujarat Government under State’s Textile Policy. The interest subsidy benefit has not only improved but also resulted in better liquidity conditions for the company. We look at higher capacity utilisation in the coming period due to an expected revival in demand of the denim and believe that our margins will improve in the near to medium term.”

NDL is India’s largest and world’s fourth largest integrated denim fabric maker. The company commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. Nandan Denim currently engages in manufacturing of denim fabric, shirting fabric and yarn.