Indian denim giants report mixed performance in Q3 FY24

Jindal Worldwide Ltd

One of the largest manufacturer and exporter of denim in India Jindal Worldwide Ltd emerged with a positive outcome, reporting a revenue increase to ₹446.24 crore from ₹413.51 crore in December 2022. The company's profit before tax (PBT) rose to ₹27.91 crore from ₹24.70 crore, while net profit climbed to ₹20.97 crore from ₹17.26 crore. Earnings per share (EPS) also saw an uplift from ₹0.86 to ₹1.05. However, the operating profit margin (OPM) saw a slight dip from 10.50 per cent to 9.55 per cent, with the net profit margin (NPM) improving from 4.17 per cent to 4.70 per cent.

Arvind Ltd

Arvind Ltd, another major denim player, reported a decrease in revenue from ₹1,846.30 crore to ₹1,754.24 crore. Despite the drop in revenue, the company's PBT improved significantly to ₹119.02 crore from ₹94.47 crore, and net profit increased from ₹81.33 crore to ₹90.80 crore. EPS rose from ₹3.12 to ₹3.47, with OPM increasing from 10.10 per cent to 11.77 per cent and NPM from 4.41 per cent to 5.18 per cent, indicating enhanced profitability.

Nandan Denim Ltd

A part of leading Indian conglomerate Chiripal Group, Nandan Denim Ltd, showed remarkable recovery, with revenue more than doubling to ₹462.18 crore from ₹262.24 crore. The company turned around from a previous loss, reporting a PBT of ₹13.48 crore in Q3 FY24 compared to a loss of ₹17.73 crore in Q3 FY23 and a net profit of ₹7.96 crore against a loss of ₹13.38 crore. EPS improved from minus ₹0.93 to ₹0.55. The company's OPM and NPM also saw significant improvements at 7.29 per cent and 1.72 per cent, respectively, compared to 0.64 per cent and minus 5.10 per cent.

KG Denim

Premier denim and apparel fabric manufacturer KG Denim reported a decline in revenue to ₹61.13 crore from ₹108.08 crore. The company still faces challenges, as indicated by a negative PBT of minus ₹3.35 crore, improving from minus ₹6.99 crore, and a net loss of minus ₹2.50 crore, better than the previous minus ₹5.78 crore. EPS improved slightly from minus ₹2.25 to minus ₹0.98. OPM in Q3 FY24 was 9.59 per cent compared to 1.24 per cent in Q3 FY23, while the NPM was minus 4.09 per cent, compared to minus 5.35 per cent in Q3 FY23.

Fibre2Fashion News Desk (DP)