The Ahmedabad-based Nandan Denim Ltd. (NDL), a part of the leading Chiripal Group and one of the largest denim fabric manufacturers in India, has reported revenue growth of 25.7 per cent YoY at Rs. 277.60 crores for the quarter ended December 31, 2014, as against Rs. 220.77 crores in the corresponding quarter of the previous year. It reported EBIDTA growth of 14.5 per cent YoY at Rs. 43.64 crores for the quarter.
Profit after tax grew by 38 per cent to Rs. 12.64 crores (Rs. 9.15 crores). EBIDTA and PAT thus registered a growth of 15.72 per cent and 4.55 per cent respectively.
In the nine months of FY15, NDL reported revenue growth of 24.9 per cent to Rs. 818.23 crores, EBIDTA of 19.1 per cent to Rs. 127.89 crores and PAT of 34 per cent to Rs. 36.07 crores. The growth in revenue is on account of further penetration in the export market, generation from the shirting segment commissioned in January 2014 and the scale of operations on account of expanded denim fabric facility with better sales realization. In the nine months, exports constituted 14 per cent of its revenue, and going forward the company intends to further increase its share in international trade.
The Board of Directors has declared an interim dividend of six per cent (Rs. 0.60 per equity share of the face value of Rs. 10). The company has been consistent in paying 12 per cent dividend to its shareholders for the previous three years.
With a long-term focus on sustainable and profitable growth, NDL has worked out a capacity expansion plan worth Rs. 612 crores. As on November 2014, it has incurred expenditure of Rs. 262.53 crores. The capex is scheduled to be completed by March 2016. This capacity expansion will enable the company to strengthen its domestic market share, expand its export business and have a greater focus on value-added segments.
The Board of Directors has approved an issue of convertible warrants for an amount not exceeding Rs. 100 crores on preferential basis to a select group of investors (promoter and / or non-promoter), to raise funds for the proposed expansion project.