Nandan Denim net profit up at Rs 7.93 crore in Q2 FY19

Nandan Denim Ltd (NDL), India’s largest and world’s fourth largest integrated denim fabric maker, has reported a net profit of Rs 7.93 crore (approx $1.1 million) for the quarter ended September 2018 as against net profit of Rs 5.24 crore in the first quarter of 2018-19. Net sales for Q2 FY19 were at Rs 370.55 crore, up 4 percent 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 percent and 2.14 percent respectively. EPS for Q2 FY19 stood at Rs 1.65 (Face value of Rs 10 per share). 

For the six months ended September 2018, NDL’s net profit was Rs 13.16 crore, while net sales were Rs 727.61 crore. For H1 FY 2018-19, EBITDA margin stood at 12.03 percent and PAT margin at 1.81 per cent.

“Company’s bottom line improved following approval of tax incentive by Gujarat government under the 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 expected revival in demand of denim and believe that our margins will improve in the near to medium term,” said NDL CEO Deepak Chiripal.

A part of Ahmedabad-based industrial conglomerate Chiripal Group, NDL commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. The company currently engages in manufacturing of denim fabric, shirting fabric and yarn.