Nitin Spinners , a leading textile manufacturer, has reported a steady performance for the first quarter, while outlining ambitious growth plans for the future.

Q1 Financial Highlights

The company's financial results for the quarter show:

• Revenue from operations stood at Rs 793.31 crore, marking a slight decrease of 1.20% compared to Rs 802.97 crore in the same quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs 111.25 crore, down 6.36% year-on-year from Rs 118.80 crore.
• Profit After Tax (PAT) reached Rs 40.99 crore, a 2.68% decrease from Rs 42.12 crore in the corresponding quarter of the previous year.
• The EBITDA margin for the quarter was 14.02%, compared to 14.80% in the same period last year.

Management Commentary and Future Outlook

Dinesh Nolkha, Chairman and Managing Director of Nitin Spinners, commented on the results: "We began on a steady note, utilizing our capacities at an optimum level. However, on the export front, demand was marginally low, as customers have been temporarily cautious due to tariff-related concerns and geopolitical tensions."

Looking ahead, the company remains optimistic about future prospects:

• Nitin Spinners anticipates healthy demand in the second half of the financial year, expecting better clarity on strategic trade agreements and tariffs.
• The company reported that 35-40% of its sales come from higher value products, with fabrics contributing 22% and specialized yarns accounting for 15-20%.
• Management projects additional revenue of Rs 1,000 crore from new capacity expansion, with an expected internal rate of return of 14-15%.
• The company expects to maintain revenue levels and anticipates EBITDA margins to remain around 14-15%.

Strategic Focus and Expansion Plans

Nitin Spinners is emphasizing value addition and capacity expansion:

• The company is focusing on developing value-added products in both fabric and yarn segments.
• A significant capacity expansion is underway, with plans to increase spinning capacity by 20% to 132,400 tonnes per annum.
• Weaving and finishing fabric capacity is set to increase by 88% to 75 million meters per annum.
• The expansion project, with an approximate cost of Rs 1,120 crore, will be funded through internal accruals and term debts.

Sustainability Initiatives

In line with industry trends towards sustainability, Nitin Spinners is undertaking several initiatives:

• Adding 11MW(DC)/9.6MW(AC) of renewable solar power capacity.
• Signed a Power Purchase Agreement for procurement of 18 MW hybrid power under a Group Captive Model.
• The company is focusing on eco-friendly practices, including the use of sustainable fibers like BCI, organic, and regenerated cotton, with about 43% of production incorporating these materials.

As Nitin Spinners continues to navigate global market challenges, its focus on value-added products, capacity expansion, and sustainability initiatives positions the company for potential growth in the evolving textile industry landscape.

Nitin Spinners , a leading textile manufacturer, has released its financial results for the first quarter and announced key management changes.

Financial Performance

The company reported revenue from operations of Rs. 793.31 crore for the quarter, compared to Rs. 802.97 crore in the previous quarter and Rs. 841.29 crore in the same quarter last year. This represents a slight decline of 1.20% quarter-on-quarter and 5.70% year-over-year.

Profit after tax (PAT) stood at Rs. 39.39 crore, down from Rs. 42.82 crore in the corresponding quarter of the previous year, marking an 8.00% decrease.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs. 111.25 crore, with an EBITDA margin of 14.02%. This compares to an EBITDA of Rs. 118.80 crore and a margin of 14.80% in the same quarter last year.

Segment-wise Performance

Nitin Spinners' revenue breakdown is as follows:

The company's geographical split shows that exports accounted for 62% of the total revenue, while domestic sales contributed 38%.

Production and Sales Volume

The company reported the following production volumes:

• Yarn Production: 27,202 MT
• Knitted Fabric Production: 1,104 MT
• Woven Fabric Production: 8.72 Million Meters
• Finished Fabric Production: 8.07 Million Meters

Management Commentary

Dinesh Nolkha, Chairman and Managing Director of Nitin Spinners, commented on the results: "We began on a steady note, utilizing our capacities at an optimum level. However, on the export front, demand was marginally low, as customers have been temporarily cautious due to tariff-related concerns and geopolitical tensions. Going forward, we anticipate a healthy demand in the second half of the financial year with better clarity on strategic trade agreements and expected tariffs."

Senior Management Appointments

The company has designated four employees as Senior Management Personnel:

1. Arvind Singh Rathore as Vice President (Engineering)
2. Ghanshyam Heda as Vice President (Engineering)
3. Inderjeet Singh as Vice President (Spinning)
4. Om Prakash Verma as General Manager (HR)

Other Announcements

• The 33rd Annual General Meeting of the company is scheduled for September 6.
• The trading window for insiders will open from August 8, in accordance with SEBI regulations.

Nitin Spinners continues to focus on execution, quality, and strategic capacity expansion in value-added segments. Despite the current challenges, the management remains confident in delivering sustained performance in the future.