💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 6.89% YoY, reaching INR 72.02 Cr in FY25 from INR 67.38 Cr in FY24. The growth is primarily driven by the supply of denim and bottom weight fabrics.

Profitability Margins

Net profit margin improved from 2.55% in FY24 to 3.20% in FY25. Profit After Tax (PAT) increased by 34.16% YoY to INR 2.30 Cr, driven by higher operational efficiency and revenue growth.

EBITDA Margin

EBITDA margin improved to 5.46% (INR 3.93 Cr) in FY25 from 3.57% (INR 2.41 Cr) in FY24, representing a 189 bps improvement in core profitability.

Capital Expenditure

Historical capital expenditure for FY25 was INR 13.23 Cr, a significant increase from INR 0.70 Cr in FY24, primarily for Property, Plant & Equipment.

Credit Rating & Borrowing

Short-term borrowings increased to INR 4.28 Cr in FY25 from INR 0.78 Cr in FY24. The company has zero non-current borrowings.

⚙️ Operational Drivers

Raw Materials

Denim fabrics and bottom weight fabrics account for the majority of procurement costs, with total operating expenses at INR 68.67 Cr (95.3% of revenue).

Import Sources

India (sourced via 16 composite mills).

Key Suppliers

The company has tie-ups with 16 composite mills for manufacturing denim fabrics as per its requirements (specific names not disclosed).

Capacity Expansion

Current capacity not specified in units; however, the company invested INR 13.23 Cr in Property, Plant & Equipment in FY25 to support growth.

Raw Material Costs

Operating expenses (including raw material procurement) were INR 68.67 Cr in FY25, representing 95.3% of revenue, a slight decrease from 97.6% in FY24.

📈 Strategic Growth

Growth Strategy

The company plans to achieve growth by expanding its customer base to reduce dependency on single clients and leveraging its tie-ups with 16 composite mills to scale supply. Management is focusing on marketing strategies to capture buoyant demand in the garment industry, supported by a significant capital expenditure of INR 13.23 Cr in FY25.

Products & Services

Denim fabrics, bottom weight fabrics, and garment products.

Brand Portfolio

Mittal Life Style.

Strategic Alliances

Manufacturing tie-ups with 16 composite mills to produce denim fabrics to specific requirements.

🌍 External Factors

Industry Trends

The garment industry is currently buoyant with a bright outlook driven by increasing government thrust and development processes. The industry is evolving through increased competition and policy shifts, with the company positioning itself as a preferred supplier of denim by maintaining flexible manufacturing tie-ups.

Competitive Landscape

The industry is exposed to high competition following government policy shifts, though specific competitor names are not disclosed.

Competitive Moat

The company's moat lies in its asset-light manufacturing model, utilizing tie-ups with 16 composite mills. This allows for scalability and cost-efficiency without the capital intensity of owning mills. This advantage is sustainable as long as mill relationships and preferred supplier status are maintained.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to government textile policies and development thrusts in the garment industry, which directly impact its growth outlook and competitive positioning.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 15.8%, with a current tax provision of INR 0.44 Cr on a Profit Before Tax of INR 2.77 Cr.

Legal Contingencies

The company has no pending litigations that would impact its financial position as of March 31, 2025. There are no undisputed statutory dues outstanding for more than six months.

⚠️ Risk Analysis

Key Uncertainties

Key uncertainties include the negative operating cash flow of INR 3.09 Cr in FY25 and the high level of trade receivables (INR 19.61 Cr increase), which could impact liquidity if credit cycles lengthen.

Third Party Dependencies

100% dependency on 16 composite mills for fabric manufacturing.

Credit & Counterparty Risk

High credit exposure indicated by an INR 19.61 Cr increase in trade receivables in FY25, representing a significant portion of the INR 72.02 Cr revenue.