AYMSYNTEX - AYM Syntex

📊 NSE: AYMSYNTEX 🏢 Textiles - Processing 📅 Last Updated: 12/13/2025 18:49

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) was INR 1,346.8 Cr in FY24, representing a 7.8% decline from INR 1,461.38 Cr in FY23. This was primarily due to a fire incident in Q1FY24 which disrupted production and led to a 0.52% drop in sales volumes to 60,866 MT.

Geographic Revenue Split

Exports contributed 47.5% (INR 644.6 Cr) of total revenue in FY24, up from 46.5% (INR 677.23 Cr) in FY23. Domestic sales accounted for the remaining 52.5%.

Profitability Margins

Operating margins slightly declined from 6.84% in FY23 to 6.65% in FY24. However, PBILDT margin improved to 8.33% in H1FY25 due to better product mix and process improvisation.

EBITDA Margin

EBITDA margin was 7.4% in FY24 (INR 101 Cr), compared to 7.2% in FY23 (INR 104 Cr) and 11.1% in FY22 (INR 166 Cr). The company targets an EBITDA growth of INR 30-50 Cr as capacity utilization improves from current low levels.

Capital Expenditure

The company has planned a total capex of INR 160-165 Cr for FY25 and FY26. This includes INR 100 Cr specifically for IDY and BCF capacity expansion in FY26, funded through INR 59 Cr from QIP and the balance via loans.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE A; Stable' for long-term bank facilities (INR 178.40 Cr) and 'CARE A1' for short-term facilities (INR 385.00 Cr) in February 2025. Interest coverage ratio (PBILDT/Interest) stood at 2.13x in FY24.

⚙️ Operational Drivers

Raw Materials

Nylon chips and Polyester chips are the primary raw materials, with total material costs accounting for 55.7% of revenue in FY24, down from 59.8% in FY23.

Import Sources

Approximately 40-50% of raw materials are imported globally, while 41% of procurement was sourced from local Indian suppliers in FY24.

Capacity Expansion

Current capacities are significantly underutilized due to fire impacts and line replacements. Planned expansion focuses on IDY and BCF segments with a 1-1.5 year completion timeline for the INR 100 Cr FY26 project.

Raw Material Costs

Raw material costs were 55.7% of revenue in FY24. Costs are highly sensitive to Brent crude price movements and buying efficiencies.

Manufacturing Efficiency

Operational improvement initiatives target waste reduction, downgrades, and re-work to enhance profitability by INR 15-20 Cr per year.

Logistics & Distribution

Distribution is impacted by global shipping uncertainties; export revenues were slightly lower at INR 644.6 Cr in FY24 due to these disruptions.

📈 Strategic Growth

Expected Growth Rate

30-50%

Growth Strategy

Growth will be driven by the 'China + 1' export opportunity, increasing utilization of underutilized lines to add INR 30-50 Cr to EBITDA, and expanding into high-margin specialty segments seeded from the textile business.

Products & Services

Multi-polymer technical products, Industrial Drawn Yarn (IDY), and Bulked Continuous Filament (BCF) yarn.

Brand Portfolio

AYM Syntex, 'The Strength Within'.

New Products/Services

Focus on specialty segments and niche technical products; specific revenue contribution % for new launches not disclosed.

Market Expansion

Expanding customer base in the European market and other global regions to leverage the 47.5% export share.

🌍 External Factors

Industry Trends

The industry is shifting toward 'China + 1' sourcing strategies, benefiting Indian technical yarn manufacturers. AYM is positioning itself by fixing legacy machinery issues and investing in technologically advanced spinning lines.

Competitive Landscape

Competes in the global synthetic and technical yarn market; specific competitor names not listed.

Competitive Moat

Moat is built on strong promoter support from Rajesh Mandawewala (Vice Chairman of Welspun Living) and established global client relationships with low concentration risk (no single client >10%).