Nandan Denim Reports Net Profit Of Rs 16.30 Crore In Q2 Of FY 2016-17

Company Performance

Nandan Denim Reports Net Profit Of Rs 16.30 Crore In Q2 Of FY 2016-17

Nandan Denim Limited (NDL), which is poised to be Asia’s largest denim fabric manufacturer, has reported a net profit of Rs 16.30 crore for Q2 of FY 2016-17 as against Rs 15.61 crore in the corresponding period of 2015-16, a rise of 4.42%.

Net sales for second quarter ended September 2016 at Rs 302.63 crore were higher by 2.75% over previous fiscal’s same quarter net sales of Rs 294.53 crore. Company reported healthy EBITDA and profit after tax (PAT) margin in Q2 FY17 at 16.23% and 5.38% respectively. Earnings per share (EPS) for Q2 FY 17 stood at Rs. 3.39 (face value of Rs 10 per share).

For the six months ended September 2016, the company reported a net profit of Rs 32.27 crore against a net profit of Rs 31.11 crore in the corresponding period last year, growth of 3.73%.

Net sales in first half of FY 2016-17 at Rs 603.12 crore were higher by 4.88% compared to Rs 575.04 crore in the first half of previous fiscal. For H1 FY 2016-17, EBITDA margin stood at 16.21% and PAT margin at 5.35%.

Deepak Chiripal, CEO, Nandan Denim Limited said, “We have maintained our growth impetus during the quarter. We will keep striving to capitalise on new opportunities, thus delivering value to our stakeholders.”

Recently, the company had announced plans to issue 50 lakh convertible warrants on a preferential basis to foreign investors at Rs 200 each, including a premium of Rs 190, according to the company’s official statement.

Nandan Denim Ltd’s CEO Deepak Chiripal had said that the proceeds would be used to augment the net worth and capital base of the company required for its business growth as well as fund existing or proposed subsidiaries, besides meet long term working capital requirement, to improve its capital structure and general corporate purposes.