Voith Paper - Voith Paper

📊 BSE: 522122 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: manufacturing and selling of paper machine clothing. While absolute revenue is not explicitly totaled in the snippets, Profit Before Tax grew 10.1% YoY from INR 48.80 Cr (537.26 Million) to INR 53.73 Cr (487.95 Million).

Profitability Margins

Profit Before Tax margin improved as PBT grew 10.1% YoY. Net Profit for FY24 was INR 36.29 Cr (362.94 Million). FY25 Net Profit is estimated at approximately INR 39.79 Cr based on equity changes and dividend payouts.

EBITDA Margin

Not explicitly disclosed, but Operating Cash Flow before working capital changes increased 12.4% from INR 46.50 Cr to INR 52.26 Cr, indicating strong core profitability growth.

Capital Expenditure

Total Capex for FY25 was INR 37.80 Cr, comprising INR 26.26 Cr for Property, Plant and Equipment/CWIP and INR 11.54 Cr for the construction of investment property.

⚙️ Operational Drivers

Raw Materials

Chemicals and flammable materials used in paper machine clothing production; specific synthetic fiber names not listed.

Capacity Expansion

Current Property, Plant and Equipment stands at INR 113.37 Cr with Capital Work-in-Progress of INR 12.94 Cr, up from INR 3.23 Cr in FY24, indicating ongoing capacity enhancements.

Raw Material Costs

Not explicitly disclosed as a % of revenue, but identified as a key risk due to fluctuating chemical and energy costs impacting the bottom line.

Manufacturing Efficiency

Efficiency is driven by the OPEX Programme; specific capacity utilization % not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through the 'Operational Excellence (OPEX) Programme' to enhance resource utilization and the bottom line. The company is also positioning itself to benefit from government bans on single-use plastics, which is expected to boost paper manufacturing demand.

Products & Services

Paper machine clothing (consumables used in the paper manufacturing process).

Brand Portfolio

Voith

New Products/Services

Focus on sustainable and recycled paper product clothing; specific revenue contribution % not disclosed.

Market Expansion

Targeting growth in the Indian paper industry which is expected to expand due to infrastructure projects and plastic bans.

Strategic Alliances

Part of the global Voith Group; specific new JVs for FY25 not listed.

🌍 External Factors

Industry Trends

Shift toward sustainability and recycled paper (growing); digitalization of content (disrupting traditional paper); government ban on single-use plastics (regulatory tailwind).

Competitive Landscape

Faces competition from global players; industry lacks scale and efficiency compared to global benchmarks.

Competitive Moat

Moat is built on 'Operational Excellence' and specialized technical nature of paper machine clothing which requires high precision and integration with paper mill machinery.

Macro Economic Sensitivity

Highly sensitive to the growth of the Indian economy and government infrastructure spending which boosts paper demand.

Consumer Behavior

Shift in consumer preference toward digital content is reducing demand in the printing/writing paper segment.

Geopolitical Risks

Not explicitly detailed, though global market competition is noted as a challenge for the domestic paper industry.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 115 for revenue recognition and Section 135 for CSR; subject to environmental and pollution norms for manufacturing.

Environmental Compliance

Company focuses on minimizing water/energy usage and reducing emissions; specific ESG cost in INR not disclosed.

Taxation Policy Impact

Income tax paid (net of refund) was INR 13.60 Cr (135.96 Million) in FY25, up 14.7% from INR 11.85 Cr in FY24.

Legal Contingencies

Pending litigations are disclosed in Note 40 of the financial statements; specific case values were not provided in the document snippets.

⚠️ Risk Analysis

Key Uncertainties

Revenue recognition is a key audit matter due to presumed fraud risk in timing of control transfer. Audit trail (edit log) was not enabled for PPE/Asset masters from April 1, 2023, to March 7, 2024.