Nandan Denim's Q3 net rises by 24%

Company's net sales rise marginally by 3.5% to Rs 287 crore

Poised to become one of the largest denim fabric manufacturers in Asia, Ahmedabad-based Nandan Denim Limited (NDL) posted a 23.8 per cent growth in its net profit for third quarter ended December 31, 2015 of financial year 2015-16.

As against a net profit of Rs 12.63 crore in the corresponding period of 2014-15, NDL saw the same rise to Rs 15.65 crore for Q3 of FY 2015-16. On the other hand, the company's net sales for third quarter ended December 2015 rose marginally by 3.5 per cent to stand at Rs 287.37 crore previous fiscal's same quarter net sales of Rs 277.60 crore.

According to Deepak Chiripal, CEO, Nandan Denim Ltd. the rise in net profit comes at a time when the company is looking to cash in on the untapped market opportunities for denim.

"Denim, despite being a staple fabric has got negligible penetration in the Indian market as compared to economies of similar population, offering huge untapped market opportunities. Post completion of the expansion plans, Nandan Denim Ltd, with much larger production capacities and product baskets would be optimally placed in competitive position to cater to the larger demand arising from India and overseas markets," Chiripal stated.

Meanwhile, for the nine months ended December 2015, NDL reported a net profit growth of 29.6 per cent at Rs 46.75 crore as against a net profit of Rs.36.06 crore in the corresponding period last year. Net sales in nine months of FY16 stood at Rs 862.41 crore, higher by 5.4 per cent compared to Rs 818.22 crore in the same period in previous fiscal.