Where Vision Meets Fashion
Dear Shareholders,
At IRIS Clothings, we embody the belief that hard work paves the path to success. As I
present to you the Annual Report for the financial year 2023-24, I am thrilled to announce
that we have concluded yet another successful year of setting new benchmarks, pursuing
sustainable growth and moving ahead with agility and determination.
With the commitment to providing exceptional services and the zeal to constantly
innovate to reach excellence, we have set the stage for a promising future. With the
textile industry undergoing a phase of consolidation, characterised by the strategic
execution of expansion plans to drive significant revenue growth, we have steadily
strengthened our capabilities to capitalise on the lucrative opportunities and fortify our
market presence. Our unwavering focus on optimising our capacity resulted in improved
efficiencies throughout the organisation.
Operational Highlights
The year of reporting has been a transformative year for Iris Clothings, characterised
by robust operational advancements and strategic expansions. We successfully broadened our
distribution network by integrating 10 new distributors in key regions, including
Maharashtra and Uttar Pradesh, which has significantly enhanced our market presence. Our
Exclusive Brand Outlets (EBOs) have shown exceptional performance, particularly with the
high demand for our newly introduced winter wear collections. The infant wear segment
continued its strong momentum, contributing notably to our revenue.
We also expanded our product portfolio by introducing new designs in our Disney apparel
line, further solidifying our position in the kids' apparel market. To support these
developments, we established a state- of-the-art, technology-driven facility that has
streamlined our operations, ensuring quicker and more efficient despatch of merchandise.
Our newly implemented B2B platform has gained widespread acceptance among distributors,
with the majority of orders now being managed through this digital channel. These
operational achievements underscore our commitment to growth and innovation, positioning
IRIS Clothings for sustained success in the years to come.
Financial Performance
Our financial performance in FY2024 stands as a testament to our operational resilience
and efficiency, especially in the face of industry-wide challenges. Despite a slowdown in
the broader market, we delivered robust results, with revenue growing by 7.88% to '
12,201.81 Lakhs compared to the previous financial year. This growth reflects our
strategic initiatives and strong market presence.
Our EBITDA saw a significant increase of 35.49%, reaching ' 2,642.75 Lakhs,
underscoring the effectiveness of our operational strategies. The improvement in EBITDA
margins by 450 basis points further highlights our enhanced efficiency and cost
management. In terms of profitability, our PAT grew from ' 825.89 Lakhs to ' 1,221.19
Lakhs, showcasing our ability to drive bottom-line growth.
This solid performance has also led to improved returns, with our Return on Assets
(ROA) increasing by 160 basis points to 9.2%, and our Return on Capital Employed (ROCE)
rising by 460 basis points to 21.20%. These figures reflect our commitment to maximising
shareholder value while maintaining a strong financial foundation.
Way Forward
Looking ahead, Iris Clothings is poised for significant growth as we continue to build
on the successes of FY2024. Our focus will be on expanding our Exclusive Brand Outlets,
with plans to open 15 new stores, enhancing our brand presence across key regions. We will
also deepen our product offerings in the infant wear segment and introduce more innovative
designs in our Disney apparel line to capture a larger market share.
Geographical expansion remains a priority, particularly in eastern India, as we
strengthen our presence in Uttar Pradesh and Uttarakhand. On the digital front, we will
leverage our B2B platform and enhance our e-commerce capabilities to drive sales and
improve customer engagement. With these strategic initiatives, we are confident in our
ability to achieve sustained growth and reinforce our position as a leader in the kids'
apparel industry.
Conclusion
I would like to express my sincere gratitude to our stakeholders, including
shareholders, customers, business partners, employees, and the wider community, for their
continued trust and support. Their contributions have been integral to our success. I also
acknowledge the invaluable guidance of our esteemed Board members. As we progress on our
journey, we are confident of accelerating value creation and ushering a stronger future
for all stakeholders.
| Warm Regards, |
| Santosh Ladha |
| Managing Director |