Jaybharat Text - Jaybharat Text

📊 BSE: 512233 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined by 76.1% YoY, falling from INR 129.54 Cr in FY18 to INR 30.96 Cr in FY19. The company operates in Textile Manufacturing and Real Estate, though specific segment-wise growth percentages were not disclosed in the provided financials.

Geographic Revenue Split

The company is domiciled in India with its registered office in Vapi and operations in Mumbai. 100% of reported revenue is domestic-based as per the standalone financial statements.

Profitability Margins

The company reported a Net Loss of INR 21.05 Cr in FY19, an improvement from a Net Loss of INR 101.29 Cr in FY18. Despite the reduced loss, the net margin remains deeply negative due to a 76.1% drop in revenue.

EBITDA Margin

EBITDA margin is estimated at -45.7% for FY19. Operating expenses including raw materials (INR 24.87 Cr) and other expenses (INR 19.18 Cr) significantly exceeded the total income of INR 30.96 Cr.

Capital Expenditure

Total assets stood at INR 228.20 Cr as of March 31, 2019, down from INR 239.75 Cr in FY18. Specific planned CapEx for new facilities in foam and terry towel manufacturing was mentioned but not quantified in INR Cr.

Credit Rating & Borrowing

The company has significant debt with Long Term Borrowings of INR 318.12 Cr and Short Term Borrowings of INR 205.59 Cr. Interest outgo was reported as NIL in FY19 compared to INR 37.50 Cr in FY18, suggesting a potential debt restructuring or non-servicing of interest.

⚙️ Operational Drivers

Raw Materials

Raw cotton and cotton yarn are the primary materials, with cost of materials consumed totaling INR 24.87 Cr, representing 80.3% of total revenue in FY19.

Import Sources

Materials are primarily sourced domestically within India, specifically supporting its manufacturing base in Vapi, Gujarat.

Capacity Expansion

Current operations involve rotor spinning and ring doubling of cotton yarns. Planned expansion includes diversifying into foam manufacture, shirting, cotton sheeting, and terry towel production.

Raw Material Costs

Raw material costs decreased by 84% YoY from INR 155.51 Cr in FY18 to INR 24.87 Cr in FY19, correlating with the sharp decline in production and revenue.

Manufacturing Efficiency

ROCE is reported at -29.1%, reflecting severe underutilization of assets and negative returns on capital employed.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

The company plans to achieve growth through product diversification into high-value segments like Technical Textiles, foam manufacturing, and terry towels. It aims to leverage rising domestic disposable income and a projected 15-20% growth in Indian textile exports by upgrading processing facilities.

Products & Services

Cotton yarn (produced via rotor spinning), ring-doubled cotton yarns, and real estate development services.

Brand Portfolio

Jaybharat Textiles.

New Products/Services

Planned launches include foam products, shirting fabrics, cotton sheeting, and terry towels to diversify away from pure yarn spinning.

Market Expansion

Targeting the emerging retail sector and mall developments in India to supply the apparel segment.

🌍 External Factors

Industry Trends

The Indian textile industry is shifting toward technical textiles and high-quality premium fabrics. While the industry expects a 12% domestic CAGR, the company is currently struggling with a 76% revenue decline.

Competitive Landscape

Faces intense competition from international players like Marks & Spencer and Guess entering the Indian market, as well as cheaper imports due to lowered duties.

Competitive Moat

The company lacks a sustainable moat as evidenced by its negative equity of INR 458.84 Cr and substantial losses, indicating a weak competitive position against larger, more efficient players.

Macro Economic Sensitivity

Highly sensitive to changes in government regulations, tax laws (GST), and economic conditions affecting consumer demand for textiles.

Consumer Behavior

Rising disposable income and a preference for high-quality premium fabrics are driving demand shifts toward the retail and apparel segments.

Geopolitical Risks

Regional trade blocks and international trade agreements are cited as factors that could shift competitive parameters and impact export feasibility.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Textile Committee regulations, and environmental pollution norms for manufacturing units.

Taxation Policy Impact

The company reported a deferred tax credit of INR 0.89 Cr in FY19. It is subject to standard Indian corporate tax laws and GST regulations.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position in its standalone financial statements, though specific case values were not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to continue as a going concern given the negative equity of INR 458.84 Cr and the 76% drop in operational revenue.