GINNIFILA - Ginni Filaments

📊 NSE: GINNIFILA 🏢 Textiles - Cotton/Blended 📅 Last Updated: 12/13/2025 22:21

💰 Financial Performance

Revenue Growth by Segment

Continuing operations revenue grew by 7.9% to INR 379.50 Cr in FY25, up from INR 351.70 Cr in FY24. However, total revenue including discontinued operations fell 56.7% from INR 875.65 Cr to INR 379.50 Cr following the slump sale of the spinning, knitting, and processing division which previously contributed INR 523.96 Cr.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company operates as an Export Oriented Unit (EOU) suggesting significant international exposure.

Profitability Margins

Net Profit Margin improved by 8.60%, moving from -7.48% in FY24 to 1.12% in FY25. This turnaround was achieved by eliminating the spinning segment which had contributed INR 58.24 Cr in losses during FY24.

EBITDA Margin

Operating Profit Margin increased from 2.32% to 3.80% (a 1.48% improvement) in FY25. Core profitability improved because the company shifted focus to the higher-margin Non-woven and Consumer Product divisions.

Capital Expenditure

Not disclosed as a specific future figure, but the company utilized slump sale proceeds to reduce term liabilities from INR 101.91 Cr to INR 22.02 Cr, a 78.4% reduction, to consolidate the residual business.

Credit Rating & Borrowing

CARE BBB-; Stable (Long-term) and CARE A3 (Short-term) reaffirmed as of June 16, 2025. Borrowing costs are supported by a reduced overall gearing of 0.40x and an improved Interest Coverage Ratio of 1.44 (up from 0.66).

⚙️ Operational Drivers

Raw Materials

Specific raw materials like cotton or synthetic fibers for non-woven production are implied but not listed with percentage costs; however, the company is described as an integrated textile player.

Capacity Expansion

Current capacity is not specified in MT; however, the company is focusing on its Non-woven and Consumer Product divisions following the exit from spinning to improve manufacturing focus.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company maintains integrated operations to manage supply chain costs for its wet wipes and technical textile lines.

Manufacturing Efficiency

Manufacturing efficiency is reflected in the improved Return on Net Worth, which rose from -11.09% to 2.13% in FY25 due to the disposal of inefficient, loss-making units.

Logistics & Distribution

Debtors Turnover Ratio improved from 4.57 to 6.23 (a 36.3% increase), suggesting more efficient collection from customers and better distribution liquidity.

📈 Strategic Growth

Expected Growth Rate

10.10%

Growth Strategy

Growth will be achieved by focusing exclusively on the Non-woven and Consumer Product divisions. The global spunlace market is expected to grow at 8.65% in volume and 10.1% in value through 2028. The company plans to leverage its integrated setup for wet wipes and technical textiles to capture this demand.

Products & Services

Technical textiles, non-woven fabrics, and consumer products including wet wipes.

Brand Portfolio

Ginni (implied by company name and consumer product focus).

New Products/Services

Focusing on personal care and hygiene products within the non-woven segment, though specific new launch revenue contributions are not disclosed.

Market Expansion

The company shifted its registered office to Noida in June 2024 to better align with corporate operations and is targeting the growing global demand for hygiene-based non-wovens.

Strategic Alliances

Concluded a slump sale of its spinning undertaking to RSWM Limited in February 2024 to exit loss-making operations.

🌍 External Factors

Industry Trends

The industry is shifting toward spunlace non-wovens, which accounted for 12.7% of the market in 2023 and is expected to rise to 14% by 2028, with value growth outpacing volume growth.

Competitive Landscape

Competes in the technical textiles and consumer hygiene space; the exit from spinning reduces direct competition with large-scale commodity yarn producers.

Competitive Moat

The moat is built on 34+ years of promoter experience in textiles and an integrated manufacturing process for technical textiles, which is difficult for new entrants to replicate at scale.

Macro Economic Sensitivity

Highly sensitive to global demand for hygiene products; the non-woven market is projected to reach 14% of the total non-woven market by 2028.

Consumer Behavior

Increasing demand for personal care and hygiene products is driving the 7-8% CAGR in the global non-woven market.

Geopolitical Risks

Global socio-economic and political changes are cited as primary factors that could impact the future outlook and export stability.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013 and FEMA 1999. Maintenance of cost records under Section 148(1) is specifically noted as not applicable to the company.

Taxation Policy Impact

The company adopted a new tax regime in FY26, resulting in a lower effective tax rate and the re-measurement of deferred tax assets/liabilities.

Legal Contingencies

There are no significant or material orders passed by regulators or courts impacting the 'going concern' status or future operations as of the FY25 audit.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the performance of the residual loss-making garment unit and the volatility of global demand for technical textiles, which could impact the 1.12% net margin.