Nandan Denim's revenues have grown 16.5 per cent year-on-year driven by healthy growth in denim and shirting fabrics. Employee cost and other expenses increased by 135 per cent year-on-year and 48 per cent year-on-year, respectively, mainly due to addition of new capacity and ramping up of export sales team. Subsequently, EBITDA margin expanded by 13.5 per cent and adjusted PAT increased 24 per cent year-on-year.
During the fourth quarter of financial year 2015, domestic sales grew 21.5 per cent year-on-year and exports grew 41 per cent year-on-year. Denim fabric sales increased 19 per cent year-on-year aided by 11 per cent volume growth. Change in the product mix in favor of value-added products drove 8 per cent growth in realisations. The shirting fabric segment also witnessed healthy traction as volumes increased 93 per cent albeit from a low base.
Domestic sales growth is expected to be steady with demand from the readymade garment industry picking up gradually. The company expects revenues to grow at a CAGR of 14 per cent over financial year 2015-’17. The company’s expansion plan is progressing as per plan. On completion of the expansion, the spinning capacity is likely to expand to 124 tons per day from 64 tons per day at present.