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 has reported mixed results, with a decline in net sales but a significant increase in net profit. In addition to this, the company has also approved a 1:1 bonus share issue, which is expected to benefit its shareholders.
Net Sales Decline in Q4 FY25
According to the company’s financial results, IRIS Clothings Ltd reported a net sales decline of 4% to ₹40.33 crore in Q4 FY25 compared to the same period last year. This decline in net sales is attributed to various factors, including intense competition in the kids’ wear apparel market and fluctuations in raw material prices.
However, despite the decline in net sales, the company’s net profit rose 29% to ₹4.48 crore in Q4 FY25. This significant increase in net profit is due to the company’s efforts to reduce its expenses and optimize its production processes.
Strong Performance in FY25
Despite the decline in Q4 FY25, IRIS Clothings Ltd reported a strong performance in FY25 as a whole. The company’s net sales grew 20% to ₹146.58 crore in FY25 compared to the same period last year. This growth in net sales is attributed to the company’s efforts to expand its product portfolio and increase its presence in the kids’ wear apparel market.
The company’s net profit also increased in FY25, rising 8% to ₹13.12 crore. This increase in net profit is due to the company’s efforts to reduce its expenses and optimize its production processes, as well as the growth in its net sales.
Plans for FY26
For FY26, IRIS Clothings Ltd plans to ramp up its production to 38,000 pieces daily. This significant increase in production capacity is expected to help the company meet the growing demand for its kids’ wear apparel products and increase its revenue.
In addition to this, the company plans to focus on expanding its presence in the kids’ wear apparel market through various marketing and promotional activities. The company also plans to invest in new technologies and processes to improve its operational efficiency and reduce its costs.
1:1 Bonus Share Issue
IRIS Clothings Ltd has also approved a 1:1 bonus share issue, which is expected to benefit its shareholders. The company’s shareholders will receive one bonus share for every share held, which will increase the company’s share capital and help to dilute the impact of the bonus share issue on the company’s earnings per share.
The bonus share issue is expected to be completed by the end of FY26, and the company has already received approval from its board of directors for the same. The company’s shareholders are expected to receive the bonus shares in the form of a free issue, and the company’s share capital is expected to increase by 50% as a result of the bonus share issue.
Conclusion
IRIS Clothings Ltd has announced 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 benefit its shareholders. The company’s plans to ramp up production and expand its presence in the kids’ wear apparel market are expected to help it achieve its growth targets in FY26.
For investors, the company’s financial performance and plans for growth make it an attractive investment opportunity in the kids’ wear apparel sector. The company’s ability to increase its production capacity and expand its presence in the market is expected to help it achieve its revenue growth targets and increase its profitability.
