PNN
New Delhi [India], July 24: Iris Clothings Limited (NSE: IRISDOREME), a readymade garment company engaged in designing, manufacturing, branding, and selling garments for kids wear, announced their financial results for the First quarter ended June 30, 2023.
Commenting on the Company’s performance Santosh Ladha, Managing Director of the Company said “We started this quarter with the launch of our Disney designed summer wear collection. This was further followed by Facility and Merchandise Authorization (FAMA) issuing a license to our Uluberia facility to manufacture and distribute products bearing the intellectual property of Disney. Given our exceptional manufacturing capabilities, we will now be able to manufacture Disney designed products for other garment companies as well. We consider our partnership with Disney and obtaining the FAMA license to be significant milestones in our journey to grow this business and strengthen our brand. However, our current focus will remain towards manufacturing Disney designed apparels to grow our own brand and scale it up significantly going forward.
While we continued to expand our presence in Maharashtra and Tamil Nadu by adding five new distributors in these states, we are also planning to open a few Exclusive Brand Outlets (EBOs) in prime locations across India to showcase our comprehensive collection.
Our revenues during the quarter witnessed a marginal increase, however, we ended up with the highest EBITDA and PAT margins reported in the last two years. This came at the back of pick-up in demand, contribution from new product categories and ease in raw material prices. Going forward, we expect our revenues to grow significantly driven by increase in sale volumes.
To reiterate, coming quarters will be all about launching our wide range of products in varied designs, expanding our presence by onboarding more distributors, unlock cross-selling opportunities and growing our brand recall.”
Financial Highlights
- Total Income stood at ₹242 Mn, up 4 per cent YoY driven by pick-up in demand.
- EBITDA margin witnessed a significant improvement and stood at 26 per cent up 803 bps YoY due to reduction in stock pile-up and low raw material prices.
- PAT margin stood at ~13 per cent as compared to 8 per cent in Q1FY23, up 524 bps YoY.
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