Nandan Denim shares surge 14% after company’s board to consider stock split on June 17

In a filing to the stock exchanges on Wednesday, June 5, the leading denim fabric maker said that its Board of Directors will meet on June 17 to consider and approve the split of equity shares of the company. This is the first time the company’s board is considering a stock split.

The company had issued bonus shares in the 2:1 ratio in the year 2022, which translated to the issue of two bonus shares for every share held by the company’s shareholders.

Nandan Denim informed the exchanges on May 27 about its standalone financial results for the fourth quarter and year ended March 31, 2024. The company’s revenue from operations for the March quarter grew 27% to ₹579.12 crore compared to ₹457.16 crore in the preceding fiscal. The company’s revenue from operations grew 25% in March from ₹462.17 crore in the quarter ended December 2023.

The company’s net profit for the March quarter grew 882% to ₹27.1 crore compared to ₹2.76 crore in the year-ago period. Sequentially, the company’s net profit grew 241% from ₹7.95 crore in the quarter ended December.

In FY24 the company’s revenue from operations fell nearly 1% to ₹2,010.08 crore compared to ₹2,026.76 crore in the preceding fiscal. The company’s net profit for FY24 surged to ₹44.96 crore against ₹53.16 lakh in the year-ago period.

Nandan Denim Limited is India’s largest integrated denim fabric maker and the fourth largest in the world. The textile company started its operations in 1994 with a trading business before foraying into fabric manufacturing in 2004. Nandan Denim’s product portfolio currently includes denim fabric, shirting fabric and yarn.

Shares of Nandan Denim were trading at ₹45.85 apiece, up 13.49%, on the NSE at 1:25 pm.