💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 5.08% YoY to INR 36,678.27 Lakhs. Segment-wise revenue for FY 2024-25: Denim at INR 23,603.38 Lakhs (97.42% of total), Solar Energy at INR 103.77 Lakhs (0.42%), and Wind Energy at INR 522.52 Lakhs (2.16%). Standalone revenue decreased 9.92% to INR 23,613.76 Lakhs.

Geographic Revenue Split

Not disclosed in available documents, though the company notes exposure to both domestic and international markets.

Profitability Margins

Net Profit Ratio improved 24.06% YoY to 8.86% from 7.14%. Standalone Net Profit grew 11.69% to INR 2,091.85 Lakhs, while Consolidated Net Profit grew 25.02% to INR 2,747.40 Lakhs. Operating Profit Ratio was reported at 0.12% compared to 0.09% in the previous year.

EBITDA Margin

Operating Profit Margin increased due to higher Earnings Before Interest and Tax (EBIT). Interest Coverage Ratio improved 7.34% to 12.14, indicating strong core profitability relative to debt obligations.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company recommended NIL dividend for FY 2024-25 to conserve resources for future growth plans and continuous modernization.

Credit Rating & Borrowing

Debt-Equity Ratio increased 29.48% to 0.26 (from 0.20) as the company utilized more cash credit facilities to increase its debt base. Interest coverage remains healthy at 12.14.

⚙️ Operational Drivers

Raw Materials

Cotton, yarn, dyes, and chemicals are the primary raw materials. Volatility in cotton and yarn prices is cited as a significant risk to the cost structure.

Capacity Expansion

Current capacity not disclosed in MT; however, the company operates a modern manufacturing unit in Surat and is investing in continuous modernization to stay competitive.

Raw Material Costs

Raw material costs are subject to high volatility in cotton and transportation prices. Mitigation strategies include strategic procurement, maintaining buffer stocks, and entering long-term contracts.

Manufacturing Efficiency

Manufacturing efficiency is supported by advanced machines and a trained staff of 356 permanent employees. Median employee remuneration increased 2.72% to INR 26,091 per month.

Logistics & Distribution

Not disclosed as a specific INR value, but logistics costs are identified as a key operational risk factor that can impact business profits.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company plans to leverage its integrated, eco-friendly model and expand into higher-margin denim segments. Growth will be supported by sustainability certifications, modern infrastructure, and the conservation of internal accruals (NIL dividend) for expansion.

Products & Services

Denim fabrics, Solar energy generation, and Wind energy generation.

Brand Portfolio

R & B Denims

New Products/Services

Expansion into higher-margin denim segments is planned to outperform peers in the evolving Indian denim landscape.

Market Expansion

Targeting growth in both domestic and global markets, specifically leveraging the projected growth of the global denim market to USD 86.7 billion by 2024.

🌍 External Factors

Industry Trends

The global denim market is growing (USD 86.7 billion in 2024) with a shift toward sustainable manufacturing. Indian manufacturers are focusing on eco-friendly models to enhance global competitiveness.

Competitive Landscape

Faces 'cut-throat' competition at local and international levels, including threats from fast fashion entrants and counterfeit/unbranded denim players.

Competitive Moat

Moat is built on an integrated eco-friendly manufacturing model and sustainability certifications. This is sustainable as it aligns with global shifts toward green textiles and provides cost efficiencies through scale.

Macro Economic Sensitivity

Sensitive to Indian economic growth and inflation (purchasing power risk). Higher inflation rates lead to faster currency value loss and increased operational costs.

Consumer Behavior

India's discretionary consumer base is limited to ~130-140 million people, constraining growth in premium segments and intensifying price pressure in value denim.

Geopolitical Risks

Risks include political turmoil, war, or revolution in buyer countries, and restrictions on remittances which may block or delay payments to the exporter.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental laws, labor regulations, and export-import policies. Compliance is monitored by a dedicated legal and compliance team.

Environmental Compliance

Not disclosed in absolute INR, but the company notes high water and energy intensity. It has adopted eco-friendly production and waste management to mitigate the risk of adverse remarks or penal provisions from regulators.

Legal Contingencies

Not disclosed in available documents. The company certified that no fraudulent or illegal transactions were entered into during the year.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (cotton/yarn), regulatory changes in environmental laws, and market demand variations in international territories.

Third Party Dependencies

Dependency on a strong base of transporters and traders for product distribution and supply chain continuity.

Technology Obsolescence Risk

Identified as a risk where technological changes in manufacturing could render existing processes obsolete; mitigated through continuous modernization.

Credit & Counterparty Risk

Debtor Turnover Ratio decreased 16.96% to 5.31, indicating a slight slowdown in receivables collection. Financial risk includes potential defaults due to increased credit days for debtors.