IRIS Clothings Ltd Announces Mixed Results & 1:1 Bonus Share
IRIS Clothings Ltd, a leading kids’ wear apparel company, has recently announced its financial results for the fourth quarter (Q4) of FY25. The company reported mixed results, with a decline in net sales and a significant rise in net profit. In addition to the quarterly results, IRIS Clothings has also approved a 1:1 bonus share issue, which is expected to boost shareholders’ returns.
Q4 FY25 Results
For Q4 FY25, IRIS Clothings reported a net sales decline of 4% to ₹40.33 crore compared to the same period last year. This decline in net sales was largely due to the ongoing challenges faced by the apparel industry, including intense competition, fluctuating raw material prices, and changing consumer preferences.
However, despite the decline in net sales, IRIS Clothings reported a significant rise in net profit of 29% to ₹4.48 crore. This increase in net profit was primarily driven by the company’s efforts to reduce costs, improve operational efficiency, and optimize its supply chain.
FY25 Results
For the entire fiscal year (FY25), IRIS Clothings reported a net sales growth of 20% to ₹146.58 crore compared to FY24. This growth in net sales was driven by the company’s expansion into new markets, increased online presence, and the introduction of new product lines.
The company’s net profit also increased by 8% to ₹13.12 crore during FY25. This growth in net profit was primarily driven by the company’s efforts to reduce costs, improve operational efficiency, and optimize its supply chain.
Plans for FY26
IRIS Clothings has outlined several plans for FY26 to drive growth and improve profitability. The company plans to ramp up its production capacity to 38,000 pieces daily, which is expected to increase its revenue and profitability. The company is also investing in new technologies and automation tools to improve its manufacturing process and reduce costs.
In addition, IRIS Clothings is planning to expand its online presence and increase its marketing efforts to attract more customers. The company is also exploring new markets and product lines to diversify its revenue streams and reduce its dependence on a single market or product.
Bonus Share Issue
IRIS Clothings has also approved a 1:1 bonus share issue, which is expected to increase the company’s equity base and boost shareholders’ returns. The bonus issue will be done in the ratio of one bonus share for every one existing share held by the shareholders. This will increase the number of shares outstanding, which is expected to reduce the company’s earnings per share (EPS) but increase its book value per share.
The bonus share issue is expected to be completed by the end of March 2023, and the new shares will be credited to the demat accounts of the shareholders. This will provide an opportunity for existing shareholders to benefit from the company’s growth prospects and increase their returns.
Conclusion
IRIS Clothings Ltd has reported mixed results for Q4 FY25, with a decline in net sales and a significant rise in net profit. Despite the decline in net sales, the company’s net profit has increased significantly due to its efforts to reduce costs and improve operational efficiency. The company has also approved a 1:1 bonus share issue, which is expected to increase its equity base and boost shareholders’ returns.
IRIS Clothings’ plans to ramp up production, expand its online presence, and explore new markets and product lines are expected to drive growth and improve profitability in FY26. The company’s 1:1 bonus share issue is expected to provide an opportunity for existing shareholders to benefit from the company’s growth prospects and increase their returns.
