Nandan Denim

Nandan Denim was in the limelight yesterday after RBI notified that FIIs/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid up capital of the company, up from earlier limit of 24%.

As at 30th Sept 2016, promoters stake stood at 58.27% and that of ‘public’ was at 41.73%.

The company had ended Q2FY17 on a very flat note with revenue showing a 3% (YoY) growth at Rs.303 crore, EBITDA was down 3% at Rs.49 crore while net profit rose 4% at Rs.16 crore. The 16% drop in interest rate and 10% drop in tax is what helped shore the bottomline.

The company’s total debt at end of Q2 stands at Rs.637 crore. Cash is at Rs.52 crore.

Nandan Denim is one of the largest denim fabric manufacturing capacities in the world. It’s denim fabric making capacity now stands at 99 MMPA. It plans to backward integrate by expanding its spinning capacity from 70 TPD (tonnes per day) to 124 TPD in FY17 resulting into higher operating margins and improved return ratios. It also owns a captive power plant of 15 MW.