Nandan Denim’s net profit for Q2, June quarter has risen 2.06 per cent as compared to the corresponding period of the previous year. Net sales for the quarter were up by 41 per cent. Ebitda and pat margins were at 14.44 per cent and 3.84 per cent respectively.
The company successfully completed capacity expansion plans and expect to get the full realisation and synergies of the expansion in the current fiscal. Post expansion, the company has become India’s largest denim fabric manufacturer with an installed capacity of 110 million meters per annum. Spinning capacity is increased to 141 tons per day and in addition the company has created a yarn dyed shirting capacity of ten million metric tons a year.
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. Spinning capacity has more than doubled. This will ensure adequate availability of yarn for the company’s fabric manufacturing unit besides reducing the degree of dependence on outside suppliers of raw materials and facilitating margin accretion.