💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations reached INR 92.69 Cr in FY 2024-25, representing a marginal growth of 0.34% YoY from INR 92.38 Cr. The company maintained a balanced trajectory across its Textile and FMCG segments, though specific percentage splits per segment were not disclosed.

Geographic Revenue Split

The company serves a broad consumer base across both domestic and international markets; however, the specific percentage contribution from each region is not disclosed in the available documents.

Profitability Margins

Net Profit Ratio improved to 19% in FY 2024-25 from 17% in the previous year, a 17.02% YoY increase. Profit Before Tax (PBT) margin stood at 26.5% (INR 24.61 Cr) and Profit After Tax (PAT) margin at 19.4% (INR 17.99 Cr).

EBITDA Margin

EBITDA margin was approximately 27.3%, based on a Profit Before Financial expenses & Depreciation of INR 25.33 Cr against revenue of INR 92.69 Cr.

Capital Expenditure

Additions to Property, Plant and Equipment (PPE) during FY 2024-25 totaled INR 0.088 Cr, primarily consisting of vehicles (INR 0.076 Cr) and computers (INR 0.012 Cr).

Credit Rating & Borrowing

The company maintains a very low Debt-Equity Ratio of 0.01, which decreased by 26.62% YoY. Finance costs for the year were INR 0.097 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include cotton and synthetic fiber. Specific percentage of total cost for each was not disclosed.

Capacity Expansion

Current installed capacity and planned expansion timelines were not disclosed.

Raw Material Costs

Raw material price volatility, particularly in cotton and synthetic fibers, is cited as a major challenge to cost stability. The government's Quality Control Orders (QCO) have impacted material availability.

Manufacturing Efficiency

The company focuses on operational efficiency and innovation-led product initiatives. Capacity utilization metrics were not disclosed.

Logistics & Distribution

The company aims to optimize supply chain management to reduce lead times and mitigate raw material risks.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through operational efficiency, innovation-led product initiatives, and expanding market reach in both Textiles and FMCG. The company is also focusing on sustainability and digitization to meet evolving consumer preferences.

Products & Services

Textile products include fabrics, garments, and home textiles. FMCG products include personal care, hygiene, and food items.

New Products/Services

The company is focusing on innovation-led product initiatives, though specific expected revenue contributions from new launches were not disclosed.

Market Expansion

Market expansion plans focus on expanding reach across domestic and international markets.

Strategic Alliances

The company holds a 48.98% interest in Kolba Farm Fab Private Limited, an associate company.

🌍 External Factors

Industry Trends

The FMCG industry in India is projected to reach USD 1,108.48 billion by 2033. The textile industry is shifting toward sustainable practices like zero-liquid discharge (ZLD) and global certifications (GOTS, OEKO-TEX).

Competitive Landscape

The industry is highly fragmented, with over 80% of units being MSMEs, leading to challenges in scalability.

Competitive Moat

Moat is derived from a diversified business model spanning two essential sectors (Textiles and FMCG) and a strong financial position with a Debt-Equity ratio of 0.01.

Macro Economic Sensitivity

Operations are sensitive to economic developments within India, demand/supply conditions, and changes in government regulations.

Consumer Behavior

Consumer behavior is evolving toward sustainability, digitization, and lifestyle-oriented products.

Geopolitical Risks

The company is subject to market price fluctuations in both domestic and overseas markets.

⚖️ Regulatory & Governance

Industry Regulations

Key regulations include Quality Control Orders (QCO) for raw materials and government schemes like PLI (INR 10,683 Cr allocation for MMF), SAMARTH for skill development, and MITRA parks for infrastructure.

Environmental Compliance

The company focuses on environmental standards including zero-liquid discharge (ZLD) and certifications like GOTS and OEKO-TEX.

Taxation Policy Impact

The effective tax rate for FY 2024-25 was approximately 26.9%, with a total tax expense of INR 6.62 Cr on a PBT of INR 24.61 Cr.

Legal Contingencies

The company notes that litigation can influence operations, but specific pending court cases or case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility, labor shortages in advanced manufacturing, and supply chain fragmentation.

Technology Obsolescence Risk

The company is investing in modern textile manufacturing techniques and data analytics to mitigate technology-related risks.

Credit & Counterparty Risk

Trade receivables turnover ratio improved by 21.71% to 5.75, indicating better receivables management. Total trade receivables stood at INR 17.92 Cr.