Strong Performers:
Arvind Limited
Leading denim manufacturer Arvind Limited emerges as the leader, demonstrating a robust growth trajectory. With a staggering revenue increase from ₹6,435.96 crore in FY19 to ₹7,722.69 crore in FY23, the company has outshined others in the market. Despite a temporary dip of ₹4,528.54 crore in FY21, the company rebounded strongly in subsequent years.
The operating profit margin (OPM) has remained consistent around the 10 per cent mark in the five-year period from FY19 to FY23. The net profit of ₹345.91 crore in FY23 reflects a strong recovery compared to ₹199.44 crore, ₹171.38 crore, ₹92.67 crore, ₹59.30 crore in FY19, FY20, FY21, and FY22 respectively.
Moderate Performers:
Jindal Worldwide Limited
India-based Jindal Worldwide Limited, one of the largest manufacturer and exporter of denim, falls under the moderate category. The revenue improved considerably in FY22, reaching ₹2,584.05 crore, compared to ₹2,113.62 crore, ₹2,016.55 crore, ₹1,709.70 crore in FY19, FY20, and FY21 respectively, but dropped to ₹2,149.02 crore in FY23. Profitability has grown, with OPM improving from 6.45 per cent in FY19 to 10.19 per cent in FY23, and net profit margin (NPM) improving from 1.25 per cent in FY19 to 5.31 per cent in FY23. The company managed to maintain moderate profitability with earnings per share (EPS) ranging from 1.32 to 5.86 during the five-year period.
Nandan Denim Limited
A part of leading Indian conglomerate Chiripal Group, Nandan Denim Limited's sales have been unstable, moving from ₹1,456.05 crore in FY19 to ₹2,026.76 crore in FY23, with significant fluctuations in between. Profitability has been moderate over the five-year period, with average OPM around 8 per cent, but the NPM has been inconsistent at 1.52 per cent, minus 0.03 per cent, minus 1.72 per cent, 3.12 per cent, and 0.04 per cent in FY19-FY23. This places Nandan Denim in the moderate performance category.
Weak Performers:
KG Denims
Premier denim and apparel fabric manufacturer KG Denims has shown a fluctuating performance with revenue peaking at ₹692.87 crore in FY19 and then declining to ₹492.53 crore, ₹413.35 crore, ₹586.19 crore, ₹511.06 crore in FY20, FY21, FY22, and FY23 respectively. The company has shown negative profitability in most years, with NPM swinging from 1.58 per cent in FY19 to minus 5.36 per cent in FY23. The inconsistent performance along with negative profitability places KG Denims in the weak category.
Aarvee Denims and Exports Limited
Aarvee Denims and Exports Limited, a company engaged in selling and manufacturing of denim and non-denim fabrics, has struggled over the five-year span. Revenue plummeted from ₹751.56 crore in FY19 to ₹566.41 crore, ₹279.13 crore, ₹421.06 crore, ₹260.90 crore in FY20, FY21, FY22, and FY23 respectively. Negative operating profit margins and net profit margins in recent years underscore the company's financial troubles. The EPS dropped to a negative value of minus 29.54 in FY23, compared to 0.46 in FY19.
Fibre2Fashion News Desk (DP)