Premco Global - Premco Global

📊 BSE: 530331 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Manufacturing of Woven & Knitted Elastic Tapes. Consolidated total revenue grew 9.78% YoY to INR 113.31 Cr, while standalone revenue grew 17.59% YoY to INR 79.28 Cr.

Geographic Revenue Split

The company operates in India and Vietnam. Standalone (India) revenue of INR 79.28 Cr accounts for approximately 70% of consolidated revenue, with the remaining 30% (INR 34.03 Cr) attributed to Vietnam and international operations.

Profitability Margins

Consolidated PAT margin was 8.69% (down from 10.42% YoY). Standalone PAT margin improved significantly to 20.87% from 9.13% YoY, largely driven by a 307% increase in Other Income to INR 15.46 Cr.

EBITDA Margin

Consolidated EBITDA margin stood at 17.69%, a decrease from 20.69% in the previous year. Standalone EBITDA margin improved to 27.06% from 16.35% YoY.

Capital Expenditure

Historical and planned Capex figures are not explicitly disclosed in INR Cr, but the company is focused on maximizing capacity utilization in existing India and Vietnam plants.

Credit Rating & Borrowing

The company maintains high financial stability with a consolidated Total Debt/Equity ratio of 0.10x and an interest coverage ratio of 5.46x. Standalone interest coverage is even stronger at 20.26x.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents, though the business involves manufacturing woven and knitted elastic tapes.

Capacity Expansion

The company aims to maximize capacity utilization in its India and Vietnam plants. Vietnam is highlighted as a large global textile hub and a rapidly growing textile exporter.

Raw Material Costs

Consolidated total expenses were INR 93.95 Cr, representing 82.9% of total revenue. Standalone expenses were INR 62.02 Cr (78.2% of standalone revenue).

Manufacturing Efficiency

Consolidated asset turnover is 84.81% (up from 75.62% YoY). Standalone asset turnover is 69.41% (down from 72.51% YoY).

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by entering new markets like Europe and Bangladesh, introducing new products, and maximizing capacity utilization in India and Vietnam. The company leverages its R&D and sampling teams to meet evolving fashion trends.

Products & Services

Woven & Knitted Elastic Tapes.

Brand Portfolio

Premco Global.

New Products/Services

The company is innovating and expanding its product mix to secure new global customers.

Market Expansion

Targeting expansion into Europe and Bangladesh to maximize capacity utilization.

🌍 External Factors

Industry Trends

The Technical Textile sector in India is expected to grow at 20% p.a. over the next five years. Vietnam is emerging as a major global textile hub.

Competitive Landscape

Expects enhanced competition as India becomes one of the largest global markets in the coming decades.

Competitive Moat

Sustainable advantages include a geographical hub in Vietnam, R&D capabilities for fashion designs, and a strong financial position with a low debt/equity ratio of 0.10x.

Macro Economic Sensitivity

Highly sensitive to global recessionary pressures and US trade policies (tariffs) which affect global trading patterns.

Consumer Behavior

Increasing fashion consciousness and higher disposable incomes are driving demand for brand-savvy apparel products.

Geopolitical Risks

Israel and Russian aggression on Gaza and Ukraine territories are cited as factors making global economies cautious and affecting trade demand.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with government safety norms for manufacturing units and technical textile standards.

Environmental Compliance

Not disclosed in INR, but the company ensures all plants comply with government safety and environmental norms.

Taxation Policy Impact

Consolidated current tax provision was INR 1.94 Cr on a PBT of INR 10.98 Cr, representing an effective tax rate of approximately 17.6%.

Legal Contingencies

The company received 6 shareholder complaints during the year, all of which were resolved. No other pending court cases or case values are disclosed.

⚠️ Risk Analysis

Key Uncertainties

US Tariffs and geopolitical instability (Gaza/Ukraine) could impact export demand by an unspecified percentage. Foreign currency risk is a key concern for Vietnam operations.