Nandan Denim net proft surges 546% to Rs 20 cr in December quarter

Despite high raw material costs and headwinds of the Covid-19 pandemic, Nandan Denim Ltd (NDL) has registered a 546% jump in its net profit to Rs 20 crore in the third quarter ended December 31, 2021. The company's net profit for the third quarter ended December 31, 2020 of the previous year was Rs 3.05 crore.

Profit after tax (PAT) margins for Q3FY22 stood at 3.38% as against 0.98% in Q3FY21, which NDL attributed to an increase in operating margins coupled with decline in depreciation.

Revenue from operations grew by 87.15% to Rs 583.17 crore for Q3FY22, as against Rs 311.61 crore in Q3FY21.

According to managing director Jyotiprasad Chiripal, the figures were achieved on the back of an increase in capacity utilization of denim and shirting division coupled with rationalisation of cost which helped NDL in sustaining operating margins. "Going forward, our objective is to ensure the sustainability of the growth in turnover and profitability of our company."

The earnings before interest, depreciation, tax and amortization (EBIDTA) for Q3FY22 stood at Rs 51.75 crore as compared to Rs 32.78 crore for Q3FY21, with a growth of 57.87% on YoY basis. EBIDTA margins for Q3FY22 stood at 8.87% as compared to 10.52% in Q3FY21.

One of the leading manufacturers of denim, Nandan Denim Limited has an installed capacity of 110 million metres per annum (mmpa) along with shirting fabrics capacity of 10 mmpa and a cotton spinning unit.