💰 Financial Performance

Revenue Growth by Segment

Total Revenue from operations grew by 228.73% YoY, increasing from INR 23.51 Cr in FY 2023-24 to INR 77.29 Cr in FY 2024-25. This growth was primarily driven by a massive scale-up in trading and processing activities.

Profitability Margins

Net Profit Margin declined by 31.36% relatively, dropping from 15.00% in FY 2023-24 to 10.27% in FY 2024-25. While absolute profit grew, the margin compression indicates that operating expenses and raw material costs scaled faster than top-line revenue.

EBITDA Margin

EBITDA (calculated as EBIT + Depreciation) stood at INR 11.39 Cr in FY 2024-25, representing a 14.6% margin, compared to INR 5.31 Cr (22.4% margin) in FY 2023-24. The 7.8% margin contraction reflects increased manufacturing and employee benefit expenses.

Capital Expenditure

The company recorded a significant investment in assets/investments of INR 20.78 Cr during FY 2024-25. However, a major fire in August 2025 resulted in a loss of fixed assets amounting to INR 20.78 Cr, effectively neutralizing recent capital additions.

Credit Rating & Borrowing

The company's finance costs increased from INR 0.41 Cr to INR 0.81 Cr (up 97.5% YoY). Despite higher absolute interest, the Debt-Equity ratio improved significantly from 0.56 to 0.23, a 33.02% reduction in leverage.

⚙️ Operational Drivers

Raw Materials

Stock-in-trade (yarn and dyes) represents the primary cost, accounting for INR 74.57 Cr or 96.4% of total revenue in FY 2024-25.

Capacity Expansion

The company increased its Authorized Share Capital during FY 2024-25 to support future growth, though specific MTPA capacity figures are not provided. A fire in August 2025 destroyed assets worth INR 20.78 Cr, which will likely necessitate a rebuilding phase.

Raw Material Costs

Purchase of stock-in-trade rose from INR 18.16 Cr to INR 74.57 Cr, a 310.6% increase YoY. This represents a significant shift in the cost structure, now consuming nearly the entire revenue base before accounting for other expenses.

Manufacturing Efficiency

Return on Capital Employed (ROCE) decreased from 18% to 16% (a 10.47% decline), indicating that while capital employed doubled to INR 62.81 Cr, the earnings efficiency did not keep pace.

📈 Strategic Growth

Expected Growth Rate

228.73%

Growth Strategy

Growth is being pursued through aggressive scaling of trading volumes and processing capacity, supported by a 116% increase in shareholder funds (from INR 28.98 Cr to INR 62.81 Cr). The strategy involves faster collection cycles (Receivable Turnover up 230%) to reinvest cash into inventory.

Products & Services

Dyeing services and processed textile products (yarn/fabric dyeing).

Brand Portfolio

Paramount Dye Tec.

Market Expansion

The company is pursuing sustainable growth initiatives and strengthening customer relationships to support future expansion, as noted in the Management Discussion and Analysis.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward better working capital utilization; Paramount outperformed with a 50.04% improvement in its Net Capital Turnover Ratio (from 1.84 to 2.76).

Competitive Landscape

The company faces pressure on margins, suggesting a highly competitive environment where volume growth is prioritized over premium pricing.

Competitive Moat

The company's moat lies in its operational liquidity and collection efficiency, with Trade Receivable Turnover improving 230.53% to 6.65, allowing for faster cash recycling than competitors.

Macro Economic Sensitivity

Highly sensitive to textile industry cycles and raw material (yarn/dye) price inflation.

⚖️ Regulatory & Governance

Industry Regulations

The company operates under the Companies Act 2013 and Ind AS; it must comply with textile processing environmental norms, though specific costs are not listed.

Taxation Policy Impact

The effective tax rate for FY 2024-25 was approximately 12.7% (INR 1.16 Cr tax on INR 9.17 Cr PBT).

Legal Contingencies

The company reported a material loss of INR 20.78 Cr due to a fire in August 2025, which is the primary financial contingency currently identified.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recovery from the August 2025 fire loss (INR 20.78 Cr), which represents roughly 33% of the company's closing shareholder funds.

Third Party Dependencies

High dependency on yarn suppliers, as stock-in-trade purchases account for 96% of revenue.

Credit & Counterparty Risk

Receivables quality has improved, with the collection cycle speeding up by 230%, reducing credit risk exposure.