SPLIL - SPL Industries

📊 NSE: SPLIL 🏢 Trading 📅 Last Updated: 12/14/2025 13:38

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew at a CAGR of 60% from INR 60.24 Cr in FY15 to INR 154.55 Cr in FY17. In FY18, job work revenue grew 51% to INR 56.28 Cr from INR 37.27 Cr in FY17. Total income for FY25 was INR 153.20 Cr.

Geographic Revenue Split

The company is predominantly export-oriented, with exports accounting for 72% of total production in FY17. Primary markets include the USA (majority), Europe, Canada, and Japan.

Profitability Margins

Net profit ratio improved to 7.02% in FY25 from 5.90% in FY24. Historically, PAT margins deteriorated from 5.87% in FY16 to 0.21% in FY17 due to a 23% increase in volume being offset by higher employee costs and rupee appreciation.

EBITDA Margin

PBILDT margin was 3.97% in FY17 (down from 8.95% in FY16). By FY19, PBILDT reached INR 31.95 Cr on a revenue of INR 159.77 Cr, representing a margin of approximately 20%.

Capital Expenditure

The company invested INR 12 Cr between FY15 and FY17 to increase garmenting capacity. An additional INR 4 Cr was spent in FY18 to enhance job work capacity from 7200 MTPA to 9000 MTPA.

Credit Rating & Borrowing

As of October 2018, the company held a CARE BBB-; Stable rating for long-term facilities and CARE A3 for short-term facilities. Ratings were withdrawn in December 2019 as the company surrendered its bank facilities and repaid term loans in full.

⚙️ Operational Drivers

Raw Materials

Textiles, fabrics, and dyes (used for stitching and dying job work) represent the primary raw material inputs, though specific cost percentages are not disclosed.

Key Suppliers

Shivalik Prints Limited is a key group company supplier that provides liberal credit terms to SPLIL to manage liquidity mismatches.

Capacity Expansion

Current garmenting capacity is 60 lakh pieces per annum (increased from 2.5 lakh pieces in FY15). Job work capacity was expanded to 9000 MTPA in FY18.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company shifted from manufacturing to trading and job work in September 2017 to manage operational costs.

Manufacturing Efficiency

Capacity utilization in the garmenting division improved from 89% in FY16 to 99% in FY17.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the expansion of job work capacity (9000 MTPA), geographic diversification in textiles, and a strategic shift toward trading. The company also entered an agreement in late 2025 to purchase land in Palwal, Haryana, for future operational expansion.

Products & Services

Knitted garments, apparel, and job work services including stitching and dying.

Brand Portfolio

Shivalik Prints (Group Brand).

Market Expansion

Geographic diversification into new international markets for textiles to reduce dependency on the USA.

Strategic Alliances

Strategic partnership with group company Shivalik Prints Limited for job work and financial support.

🌍 External Factors

Industry Trends

The apparel industry is fragmented and highly competitive; SPLIL is positioning itself by moving toward a less capital-intensive trading and job work model.

Competitive Landscape

Operates in a highly fragmented and competitive textile industry with low barriers to entry and high bargaining power of international buyers.

Competitive Moat

Moat is derived from 22 years of promoter experience and long-standing relationships with global retail chains, though sustainability is challenged by high client concentration.

Macro Economic Sensitivity

Highly sensitive to US economic cycles and global apparel demand; also sensitive to Indian minimum wage regulations which increased employee expenses in FY17.

Consumer Behavior

Increasing focus on sustainability and transparency in the supply chain, which the company is addressing through its Corporate Governance and green initiatives.

Geopolitical Risks

Exposure to trade dynamics in the USA, Europe, Canada, and Japan, which are the primary export destinations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to minimum wage laws (which increased costs in FY17) and Ministry of Corporate Affairs (MCA) directives regarding company naming conventions.

Environmental Compliance

The company has implemented digital and green initiatives that are pro-environment, though specific ESG costs are not disclosed.

Legal Contingencies

A writ petition is pending before the Hon’ble High Court of Delhi challenging a December 3, 2024, order from the Regional Director (MCA) directing a change in the company's name.