SIGNORIA - Signoria Creatio
Financial Performance
Revenue Growth by Segment
Total revenue for FY25 was INR 27.22 Cr. Segment-specific growth percentages are not disclosed, but the company operates primarily in the women's apparel segment.
Geographic Revenue Split
The company has an expanding presence both domestically in India and in exports, though the specific percentage split between these regions is not disclosed.
Profitability Margins
Operating Profit Margin was 17.90% in FY25, down from 20.11% in FY24 (-10.99% change). Net Profit Margin was 11.10% in FY25 compared to 12.32% in FY24 (-9.92% change).
EBITDA Margin
EBITDA for FY25 was INR 5.29 Cr (529.33 Lakhs), representing an EBITDA margin of approximately 19.44%.
Credit Rating & Borrowing
The company reported an Interest Coverage Ratio of 6.56 in FY25, a 2.5% increase from 6.40 in FY24, indicating strong ability to meet interest obligations.
Operational Drivers
Raw Materials
Cotton is specifically identified as a key raw material subject to price volatility. Other materials include fabrics for kurtis, pants, and co-ord sets.
Key Suppliers
Not disclosed, but the company relies on a select network of suppliers and job workers for manufacturing inputs.
Capacity Expansion
Current installed capacity is up to 4,77,000 pieces of quality garments per year across 2 manufacturing units.
Raw Material Costs
Raw material price volatility, especially cotton, is cited as a major operational risk. Procurement strategies include bulk procurement and maintaining inventory buffers.
Manufacturing Efficiency
The company utilizes advanced technology in its Rajasthan-based units to meet production demands and maintain quality standards.
Logistics & Distribution
Not disclosed, but the company uses diversified logistics as a risk mitigation strategy against environmental disruptions.
Strategic Growth
Expected Growth Rate
Not disclosed
Growth Strategy
Growth will be achieved through the acquisition of a 60% stake in Herble Prints Private Limited to expand the textile business globally, investing in infrastructure and technology, expanding the customer base, and improving functional efficiency.
Products & Services
Women's apparel including kurtis, pants, tops, co-ord sets, dupattas, and gowns.
Brand Portfolio
Signoria
New Products/Services
The company continuously updates its portfolio with over 950+ designs to maintain market relevance.
Market Expansion
Plans to expand the 'Signoria' brand footprint across India and into global textile markets through its new subsidiary.
Strategic Alliances
Acquired 60% of total issued and paid-up equity share capital of Herble Prints Private Limited.
External Factors
Industry Trends
The industry is seeing increased digital penetration and a rise in fashion-conscious consumers. Signoria is positioning itself by expanding its e-commerce presence and digital sales channels.
Competitive Landscape
Operates in a highly fragmented and competitive women's ethnic and contemporary apparel sector.
Competitive Moat
Competitive advantages include a strong brand identity ('Signoria'), a large design library (950+), inclusive sizing, and an experienced management team. These are sustained through continuous design innovation and quality control.
Macro Economic Sensitivity
Sensitive to uncertainties arising from pandemics, natural disasters, and geopolitical events that disrupt supply chains and demand.
Consumer Behavior
Shift toward fashionable attire that blends comfort and style, with increasing demand for ethnic wear through digital channels.
Geopolitical Risks
Geopolitical events are monitored for potential disruptions to supply chain and demand.
Regulatory & Governance
Industry Regulations
Operations are impacted by textile industry policies, labor statutes, and export/import duties.
Environmental Compliance
The company follows sustainable and environmentally aligned practices to mitigate regulatory risks.
Taxation Policy Impact
Subject to GST laws and frequent policy changes in the textile industry.
Legal Contingencies
The company reported no pending litigations as of March 31, 2025, that would impact its financial position.
Risk Analysis
Key Uncertainties
Raw material price volatility and substantial working capital requirements are primary uncertainties. The Current Ratio dropped 25.72% to 1.55 in FY25 due to increased current liabilities.
Geographic Concentration Risk
Manufacturing is concentrated in Jaipur, Rajasthan, making it sensitive to regional industrial policies.
Third Party Dependencies
High reliance on select suppliers and job workers for manufacturing and input sourcing.
Technology Obsolescence Risk
Risk of falling behind in digital disruptions; mitigated by investments in ERP and modern marketing tools.
Credit & Counterparty Risk
Delays in collection from customers may stress liquidity, requiring prudent credit assessment.