Are Nandan Denim latest results good or bad?

Nandan Denim has reported its financial results for the quarter ending June 2025, showcasing a notable year-on-year growth in net sales of 61.16%, amounting to Rs 2,096.33 crore. This reflects a strong operational performance in terms of sales, supported by an impressive inventory turnover ratio of 20.06 times, indicating effective inventory management.
In terms of profitability, the company achieved a profit before tax (PBT) of Rs 13.28 crore and a profit after tax (PAT) of Rs 11.20 crore, both representing the highest figures recorded in the last five quarters. The earnings per share (EPS) stood at Rs 0.08, suggesting enhanced profitability for shareholders. Additionally, the debtors turnover ratio improved to 6.95 times, indicating efficient management of receivables.

However, when comparing the quarterly results to the previous quarter (March 2025), there was a slight decline in net sales growth of -0.09% and a profit growth of 5.56%, which were lower than the previous quarter's performance. The operating profit margin also experienced a minor decrease.

It is worth noting that Nandan Denim saw an adjustment in its evaluation over the past three months. Overall, while the company has demonstrated strong year-on-year growth and operational efficiency, the quarter-on-quarter comparisons indicate some challenges in maintaining momentum.