Nandan Denim Limited, a major player in the denim industry, has announced a remarkable surge in sales for the third quarter of the fiscal year 2025. Net sales skyrocketed by an impressive 100.39%, reaching Rs 926.15 crore, a significant jump from Rs 462.18 crore in the same period last year. This surge in sales highlights the company’s strong performance and growing demand for its denim products.
However, this positive news is tempered by a decline in net profit, which fell by 17.3% to Rs 6.58 crore from Rs 7.96 crore in the corresponding period of the previous year. This dip in profitability raises questions about the company’s cost management and pricing strategies.
The company’s EBITDA also experienced a decrease, falling by 8.42% to Rs 30.87 crore. Additionally, the earnings per share (EPS) saw a significant reduction, dropping to Rs 0.05 from Rs 0.55 in the same period last year.
Following the release of these financial results, the company’s share price experienced a decline of 5.23% on Tuesday, closing at Rs 3.99. This drop in share price reflects investor concerns about the company’s profitability despite the substantial increase in sales.
Overall, Nandan Denim’s Q3 results present a mixed picture. While the company has demonstrated impressive growth in sales, its declining profits and share price indicate potential challenges that need to be addressed. The company will need to focus on improving its profitability and restoring investor confidence to maintain its growth trajectory in the competitive denim market.
