💰 Financial Performance

Revenue Growth by Segment

Total Income decreased by 2.21% YoY to INR 3,267.23 Lakh from INR 3,341.17 Lakh. Export sales, the primary revenue driver, declined by 2.07% to INR 2,825.52 Lakh from INR 2,885.17 Lakh.

Geographic Revenue Split

Rest of World contributes 52.8% (INR 1,583.63 Lakh), Europe contributes 41.4% (INR 1,241.89 Lakh), and India contributes 5.8% (INR 174.27 Lakh) of total revenues.

Profitability Margins

Net Profit Margin improved from 2.47% to 3.02% YoY, with Net Profit After Tax rising 19.2% to INR 90.45 Lakh. However, Operating Profit Margin declined from 7.35% to 6.54% due to lower operational efficiency.

EBITDA Margin

Operating EBITDA Margin fell to 7.56% in FY 2024-25 from 8.26% in FY 2023-24, reflecting a 10.64% decrease in absolute EBITDA to INR 226.81 Lakh.

Credit Rating & Borrowing

The company maintains a very low Debt-Equity ratio of 0.02, down from 0.03 YoY, indicating minimal reliance on external borrowings. Specific interest rates are not disclosed.

⚙️ Operational Drivers

Raw Materials

Cotton yarn is the primary raw material; spun polyester yarn is identified as a lower-cost substitute and competitive threat. Specific cost percentages are not disclosed.

Capacity Expansion

Current production reached 69.80 Lakh pairs of knitted products in FY 2024-25, a 6.7% increase from 65.42 Lakh pairs in FY 2023-24. Planned expansion details are not disclosed.

Manufacturing Efficiency

Knitting production increased by 6.7% to 69.80 Lakh pairs, though pairs dispatched fell by 8.5% to 70.41 Lakh pairs. ROCE declined from 10.15% to 8.40%.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by leveraging the 19% increase in the Union Budget allocation for the Ministry of Textiles, participating in the 'Cotton Mission,' and focusing on training its 150-member workforce to meet the quality standards of reputed global brands.

Products & Services

Knitted socks and readymade textile garments, measured in pairs.

Brand Portfolio

Virat Industries.

Market Expansion

The company is targeting increased exports to reputed brands by improving manufacturing-level training and operational excellence.

🌍 External Factors

Industry Trends

The textile industry is seeing a 10% growth in readymade garment exports. India is becoming a level-field player with the EU, supported by government initiatives like the 'Cotton Mission' and MSME support.

Competitive Landscape

Competes with domestic manufacturers using cheaper polyester yarn and international competitors in the European and global markets who may benefit from lower tariffs.

Competitive Moat

The company's moat is built on a highly trained workforce of 150 employees and a strong financial position with a 5.97 current ratio and near-zero debt (0.02 D/E), ensuring long-term operational stability.

Macro Economic Sensitivity

Sensitive to global growth (projected at 3.2-3.3%) and domestic inflation; India's retail inflation declined to 3.3% in March 2025, which may stabilize domestic costs.

Consumer Behavior

There is a notable shift in local markets where consumers are opting for cheaper polyester-based innerwear over traditional cotton textiles.

Geopolitical Risks

Ongoing border tensions and global trade policy risks are cited as potential threats to economic projections and export stability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to a 10.6% import duty on textile products and compliance with the Companies Act 2013 and SEBI Listing Regulations.

Taxation Policy Impact

The company's effective tax rate is approximately 25.3%, with Net Profit Before Tax of INR 121.18 Lakh and Net Profit After Tax of INR 90.45 Lakh.

Legal Contingencies

The company reports compliance with all prescribed requirements of Stock Exchanges and SEBI over the last three years; no specific pending court cases or values are disclosed.

⚠️ Risk Analysis

Key Uncertainties

Primary uncertainties include the persistence of high import duties (10.6%) and the potential for escalated border tensions to disrupt global trade routes.

Geographic Concentration Risk

High geographic concentration in exports, with 94.2% of revenue derived from international markets (Europe and Rest of World).

Third Party Dependencies

The company utilizes contract labor in addition to its 150 payroll employees, indicating some dependency on external labor providers.

Credit & Counterparty Risk

Debtors turnover ratio decreased from 6.51 to 5.53, suggesting a slight slowdown in receivable collections, though the current ratio remains strong at 5.97.