Revenues of leading Indian denim manufacturers decline in FY24

India's leading denim manufacturers reported declines in revenue for fiscal 2024 (FY24), showcasing mixed performances in terms of net profit and profitability margins. The key players in the industry—Jindal Worldwide Ltd, Arvind Ltd, Nandan Denim Limited, and R&B Denims Ltd—have each faced unique challenges and opportunities over the past year.

Jindal Worldwide Ltd

Leading denim manufacturer Jindal Worldwide experienced a notable decline in revenue, which dropped to ₹18.593 billion (approximately $223.06 million) in FY24 from ₹21.490 billion in FY23. This represents a significant reduction in their financial performance. Correspondingly, net profit decreased to ₹700.29 million from ₹1.141 billion. The company's earnings per share (EPS) fell from ₹5.69 to ₹3.49.

The operating profit margin (OPM) also saw a decline, dropping from 10.19 per cent in FY23 to 8.00 per cent in FY24. Similarly, the net profit margin (NPM) decreased from 5.31 per cent to 3.77 per cent, indicating reduced profitability.

Arvind Ltd

Arvind Ltd, one of the largest denim manufacturers in India, reported a decrease in revenue from ₹77.226 billion in FY23 to ₹71.004 billion (approximately $851.8 million) in FY24. Despite the drop in revenue, the company's net profit only slightly decreased from ₹3.459 billion to ₹3.049 billion. EPS also saw a decline from ₹13.49 to ₹11.66.

Interestingly, Arvind’s operating profit margin improved from 10.06 per cent to 10.81 per cent, suggesting better operational efficiency. However, the net profit margin saw a slight dip from 4.48 per cent to 4.29 per cent.

Nandan Denim Limited

A part of leading Indian conglomerate Chiripal Group, Nandan Denim reported relatively stable revenue, with a minor decrease from ₹20.267 billion in FY23 to ₹20.1 billion (approximately $241.14 million) in FY24. The company achieved a remarkable turnaround in net profit, rising significantly from ₹8.04 million in FY23 to ₹449.70 million in FY24. This improvement is reflected in the EPS, which increased from ₹0.06 to ₹3.12.

The operating profit margin for Nandan Denim Limited rose from 4.74 per cent to 7.61 per cent, while the net profit margin showed a substantial increase from 0.04 per cent to 2.24 per cent, indicating a strong recovery in profitability.

R&B Denims Ltd

R&B Denims, one of the largest vertically integrated textile manufacturers with over 30 million metres capacity of denim, reported a slight decrease in revenue, falling from ₹2.760 billion in FY23 to ₹2.622 billion (approximately $31.4 million) in FY24. Despite the revenue drop, the company’s net profit increased from ₹149.10 million to ₹187.28 million, with the EPS rising from ₹2.13 to ₹2.64.

The operating profit margin improved significantly from 10.63 per cent to 13.55 per cent, and the net profit margin also rose from 5.40 per cent to 7.14 per cent, indicating enhanced profitability and cost management.

ALCHEMPro News Desk (DP)