Iris Clothings Limited – Investor Presentation Summary

Key Operational Highlights

  • Manufacturing capacity expanded from 35,000 sq. ft. (8,000 pieces/day) in 2013 to 1,25,000 sq. ft. (33,000 pieces/day) in 2023, with vision to reach 3,00,000 sq. ft. (1,20,000 pieces/day) by 2030
  • Market reach expanded from 20 distributors across 13 states in 2013 to 170 distributors across 26 states and 7 countries (exports) in 2023, targeting 300 distributors and 300+ EBOs across 12 countries by 2030
  • Current installed capacity: 36,000 pieces per day across 1,45,000 sq. ft. area
  • Manufacturing facilities include 10 manufacturing units, 2 dispatch units, and 1 corporate office across multiple locations in Howrah (Foreshore Road, Pachla, Uluberia) and Srijan Industrial Park, Bombay Road
  • Utilizes advanced machinery from Japan, USA, and Italy with fully automated processes

Key drivers of operational performance: Manufacturing excellence, strategic location advantages for skilled labor and raw materials, advanced machinery implementation, and continuous capacity expansion.

Segment-wise Performance

Not Specified

Financial Highlights

Revenue: Rs. 62.16 crores (Q2 FY27), Rs. 109.40 crores (H1 FY27)

EBITDA: Rs. 9.47 crores (Q2 FY27), Rs. 17.57 crores (H1 FY27)

PAT: Rs. 5.08 crores (Q2 FY27), Rs. 9.09 crores (H1 FY27)

Gross Profit Margin: 40.7% (Q2 FY27), 42.3% (H1 FY27)

EBITDA Margin: 15.2% (Q2 FY27), 16.0% (H1 FY27)

YoY comparison: Revenue growth 40.2% (Q2), 33.9% (H1); PAT growth 23.3% (Q2), 34.7% (H1)

Drivers of financial performance: Higher revenue growth, improved gross profit margins, operational efficiencies

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Exports to 7 countries currently, expanding to 12 countries by 2030

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Not Specified

Capex & Cash Flow Health

Capital Expenditure: Planned Rs. 50 crores for new 200,000 sq. ft. facility in West Bengal

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion to support retail B2B business and EBO roll-out, technology upgrades with modern sewing machines

Strategic & R&D Initiatives

Investments in Innovation: Disney licensing agreement for character apparel, FAMA approval for manufacturing Disney products, product category expansion (innerwear, sportswear, infant accessories), brownfield expansion through debottlenecking

Expected impact on growth: Disney products contribute to premium pricing capability and higher profit margins; new product categories expected to increase revenue contribution

Strategic Rationale: Expanding into high-growth markets through D2C strategy, reducing operational costs through OEM partnerships for certain products like jeans

Industry Trends & Business Environment

Macro/Industry Trends: Textile & apparel market expected to pick up post macro-headwinds

Impact on Company: Not Specified

Management Commentary & Growth Outlook

Strategic Outlook: Vision 2030 focused on direct-to-consumer expansion through EBOs and online D2C strategy

FY Guidance: Targeting consumer sales growth from Rs. 250+ crores in FY24 to approximately Rs. 300 crores

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified