Feedback Here

fbook  tweeter  linkin  google
Global contents also translated in Chinese

Nandan Denim uses 63 per cent capacity in last nine month period

For the nine month period Nandan Denim’s capacity utilisation stood at 63 per cent. Gross margin stood at 30.2 per cent and declined by 199 bps due to lower sale realisation and relatively higher price of key raw materials such cotton, power etc.

Employee expenses and other operating expenses marginally increased by 3.2 per cent and 3.3 per cent respectively. Ebitda margin was 10.7 per cent. The temporary oversupply, aggression in pricing and higher credit period which the industry is facing impacted the volumes, realisation and profitability of the company.

Net finance cost declined by 52.8 per cent. Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.

The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material.

A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover. Nandan is gradually steering the business towards the value added denim category.

 

 
LATEST TOP NEWS
 
 
MOST POPULAR NEWS