IRIS Clothings Ltd announces mixed results & 1:1 bonus share
IRIS Clothings Ltd, a leading kids’ wear apparel company, has reported mixed quarterly results for the fourth quarter of FY25. While the company’s net sales declined by 4% to ₹40.33 crore, its net profit rose by a substantial 29% to ₹4.48 crore. For the entire fiscal year 2025, IRIS Clothings Ltd registered a growth of 20% in net sales, reaching ₹146.58 crore, and an 8% increase in net profit, reaching ₹13.12 crore.
The company’s mixed quarterly results have raised concerns among investors, but the announcement of a 1:1 bonus share has provided a much-needed boost to the stock. The bonus share issue is expected to increase the company’s equity base and make its shares more attractive to investors.
IRIS Clothings Ltd is a well-established player in the kids’ wear apparel industry, offering a wide range of products for children from birth to 12 years old. The company has been focused on expanding its product portfolio and increasing its presence in the domestic market. Its products are known for their high quality, comfort, and style, making it a popular choice among parents.
The company’s revenue growth in FY25 was driven by its successful expansion strategy, which included the launch of new products, the introduction of new brands, and the strengthening of its distribution network. IRIS Clothings Ltd also made significant investments in digital marketing and e-commerce platforms to increase its online presence and reach a wider customer base.
Despite the decline in net sales in Q4 FY25, the company’s net profit rose significantly due to its efforts to reduce costs and improve operational efficiency. IRIS Clothings Ltd has been focused on optimizing its supply chain and reducing its dependence on external vendors to increase its bargaining power and reduce costs.
The company’s plans to ramp up production to 38,000 pieces daily in FY26 are expected to drive revenue growth and increase its market share. IRIS Clothings Ltd has also approved a 1:1 bonus share issue, which will increase the company’s equity base and make its shares more attractive to investors.
The bonus share issue is expected to increase the company’s equity base by ₹72.66 crore, which will increase the number of shares outstanding from 14.99 crore to 29.98 crore. The bonus share issue is expected to be executed in the next quarter, subject to regulatory approvals.
The announcement of a 1:1 bonus share has been well-received by investors, with the company’s stock price rising sharply in response to the news. The bonus share issue is expected to increase the company’s market capitalization and make it more attractive to institutional investors.
In conclusion, IRIS Clothings Ltd’s mixed quarterly results and 1:1 bonus share announcement have provided a much-needed boost to the company’s stock. The company’s focus on expansion, cost reduction, and operational efficiency is expected to drive revenue growth and increase its market share. The bonus share issue is expected to increase the company’s equity base and make its shares more attractive to investors.
