Nitin Spinners Ltd (BOM:532698)
₹ 400.95 -9.2 (-2.24%) Market Cap: 22.54 Bil Enterprise Value: 35.93 Bil PE Ratio: 15.58 PB Ratio: 1.96 GF Score: 88/100

Q1 2025 Nitin Spinners Ltd Earnings Call Transcript

Jul 23, 2024 / 10:00AM GMT
Release Date Price: ₹414.45 (-3.76%)

Key Points

Positve
  • Revenue for Q1 FY25 increased by 30% year-on-year, reaching INR803 crores.
  • EBITDA for the quarter improved to INR118.80 crores, with a margin increase to 14.8%.
  • Profit after tax rose by 45.7% year-on-year, reaching INR42.12 crores.
  • The company is focusing on optimizing product mixes and cost efficiencies to improve margins.
  • Investments in renewable energy are expected to ensure sustainable growth.
Negative
  • International cotton prices have dropped by 10% to 12%, making imported cotton more competitive.
  • Logistic concerns have impacted the ability to ship out the total quantity produced.
  • The domestic cotton prices are slightly higher than international prices due to government policies.
  • The company is operating at near full capacity, limiting potential revenue growth without further expansion.
  • Geopolitical challenges and increased logistic costs continue to affect export markets.
Operator

Ladies and gentlemen, good day and welcome to Nitin Spinners Limited Q1 FY25 earnings conference call hosted by SMIFS Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Awansih Chandra from SMIFS Limited. Thank you and over to you, sir.

Awanish Chandra
SMIFS Limited - Executive Director

Limited, I welcome you all to Quarter 1 FY25 Earnings Conference Call of Nitin Spinners Limited. We are pleased to host the top management of the company. Today we have with us Mr. Dinesh Nolkha, Promoter and Managing Director of the company, and Mr. P. Maheshwari, CFO of the company. We will start the call with initial commentary on results, then we will open the floor for questions and answers. Now, I will hand over the call to the

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