💰 Financial Performance

Revenue Growth by Segment

Consolidated Net Profit Before Tax fell 88.2% YoY to INR 949.87 Lakhs in H1 FY25 from INR 8,049.32 Lakhs in H1 FY24, primarily due to the absence of exceptional asset sale gains. The card clothing division previously reported an 11% YoY increase in operating income to INR 51.28 Cr in FY20.

Geographic Revenue Split

Higher exports were a key driver for an 11% YoY increase in operating income in FY20; specific regional percentage splits for H1 FY25 were not disclosed in the available documents.

Profitability Margins

Operating Profit Margin improved to 74.43% in FY25 from 64.78% in FY24. Net Profit Margin reached 255% in FY25 compared to 16.06% in FY24, heavily influenced by one-time profits from the sale of land and buildings.

EBITDA Margin

Operating Profit Margin increased by 9.65 percentage points YoY to 74.43% in FY25, driven by profit on asset sales and fair value gains on investments.

Credit Rating & Borrowing

Credit rating indicates a weak financial risk profile due to continued operating losses in the card clothing division. Interest paid in H1 FY25 was INR 64.15 Lakhs on a significantly reduced debt base (Debt-Equity ratio of 0.04).

⚙️ Operational Drivers

Raw Materials

Not specifically named in documents.

Manufacturing Efficiency

Operating losses in the card clothing division were substantially reduced by lowering overheads that were previously not covered by sufficient revenues.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is executing a strategy of monetizing non-core real estate assets (INR 66.41 Cr profit in H1 FY24) and diversifying into financial services, evidenced by a INR 10 Cr equity investment in CFM Asset Reconstruction Private Limited (CFMARC) approved in October 2025.

Products & Services

Card clothing for textile spinning machinery.

Brand Portfolio

The Indian Card Clothing Company Limited.

Strategic Alliances

Equity investment of INR 10 Cr in CFM Asset Reconstruction Private Limited (CFMARC) to leverage opportunities in the asset reconstruction sector.

🌍 External Factors

Industry Trends

The card clothing industry is facing high overhead pressures; the company is responding by reducing employee costs and shifting focus toward exports, which grew 11% in FY20.

Competitive Moat

Niche expertise in card clothing manufacturing provides a specialized market position; however, sustainability depends on successful cost restructuring and diversification into financial investments.

⚖️ Regulatory & Governance

⚠️ Risk Analysis

Key Uncertainties

Sustainability of net profits which were primarily driven by a 255% net profit margin in FY25 due to one-time asset sales (INR 66.41 Cr) rather than core manufacturing performance.

Credit & Counterparty Risk

Trade receivables increased to INR 1,045.32 Lakhs in H1 FY25 from INR 844.88 Lakhs in FY24, a 23.7% rise, indicating potential working capital pressure.