PNN

Howrah (West Bengal) [India], November 7: Iris Clothings Limited (NSE: IRISDOREME), a readymade garment company engaged in designing, manufacturing, branding, and selling garments for kids wear, announced their financial results for the Second quarter and Half year ended September 30, 2023.

Commenting on the Company's performance Santosh Ladha, Managing Director of the Company said "I am pleased to share that we inaugurated our first Exclusive Brand Outlet (EBO) in the quarter gone by, followed by another store last month. As per our expansion strategy, that was shared a few months ago, we consider EBOs to be the third leg of expansion. Both these stores are doing extremely well and have received a significant boost due to the ongoing festive season. We have three more EBOs in pipeline that will be inaugurated in West Bengal in the coming quarters.

Our Disney designed apparels are receiving good traction as well. Along with this, we continue to see infant wear gaining traction and expect this vertical to contribute 15-20% in FY24.

We continued to expand our footprint and onboarded seven new distributors, strengthening our presence in Maharashtra and West Bengal, alongside entering Nagaland.

Our revenues increased marginally, driven by volume uptick but offset by impact on price. We expect strong performance in H2 FY24 driven by strong demand and improvement in average sale price through product enhancements on various levels."

Financial Highlights

* Total Income was Rs322 Million; up 1% YoY & 33% QoQ

* Driven by volume uptick, partially offset by low selling price as we passed on the benefit of reduced raw material prices

* EBITDA margin stood at 24%; up 221 bps YoY & down 280 bps QoQ

* Due to increased employee expenses; additional hiring to kick start the operations of EBOs and to ramp up production

* PAT margin stood at 11%; up 40 bps YoY & down 138 bps QoQ

* Due to increased finance cost as we took on additional debt to finance our working capital

* Began building summer wear inventory a month prior than usual, as we expect to see robust demand in Q4FY24



Iris Clothings Limited is a fast-growing readymade garment company that is primarily engaged in designing, manufacturing, branding and selling garments for kids wear under its brand name DOREME in India. The Company delivers a broad range of affordable and good quality apparels for infants, toddlers, and children in their pre-teens, serving both their indoor and outdoor requirements. It has been in operations for over 17 years and continues to add new product lines by employing the best-in-class technology across its value chain. For more information view www.irisclothings.in and www.doreme.in.

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