IRIS Clothings Ltd Announces Mixed Results & 1:1 Bonus Share
IRIS Clothings Ltd, a leading kids’ wear apparel company, has recently announced its quarterly and annual results for FY25. The company has reported mixed results, with a decline in net sales in the fourth quarter, but a significant increase in net profit. Alongside the results, the company has also approved a 1:1 bonus share issue, which is expected to boost the company’s valuation and appease its shareholders.
Q4 FY25 Results
In the fourth quarter of FY25, IRIS Clothings Ltd reported a decline of 4% in its net sales, which stood at ₹40.33 crore. This decline was largely due to the challenging market conditions and intense competition in the kids’ wear apparel segment. However, the company’s net profit rose 29% to ₹4.48 crore, indicating a significant improvement in its profitability.
FY25 Results
For the full fiscal year FY25, IRIS Clothings Ltd reported a net sales growth of 20% to ₹146.58 crore. The company’s net profit also increased 8% to ₹13.12 crore, demonstrating its ability to maintain profitability despite the challenges faced in the market.
Ramping up Production
IRIS Clothings Ltd has announced plans to ramp up its production capacity to 38,000 pieces daily in FY26. This will enable the company to meet the growing demand for its products and increase its market share in the kids’ wear apparel segment. The company has also invested heavily in modernizing its manufacturing facilities and upgrading its technology to improve efficiency and reduce costs.
1:1 Bonus Share Issue
The company has approved a 1:1 bonus share issue, which will result in an issuance of one free share for every one share held by its shareholders. This move is expected to boost the company’s valuation and provide a significant return to its investors. The bonus issue is subject to the approval of the shareholders and the regulatory authorities.
Impact on Share Price
The announcement of the mixed results and the 1:1 bonus share issue is likely to have a positive impact on the company’s share price. The company’s stock has been trading at a discount to its peers in the kids’ wear apparel segment, and the bonus issue is expected to attract new investors and boost the company’s valuation.
Conclusion
IRIS Clothings Ltd has reported mixed results for Q4 FY25, with a decline in net sales but a significant increase in net profit. The company has also approved a 1:1 bonus share issue, which is expected to boost its valuation and provide a significant return to its investors. With its plans to ramp up production and invest in modernizing its manufacturing facilities, the company is well-positioned to maintain its growth momentum in the future.
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