💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations fell 83.52% YoY, decreasing from INR 2,542.5 lakhs in FY24 to INR 419.08 lakhs in FY25. Segment-specific growth percentages are not disclosed.

Profitability Margins

Operating Profit Margin worsened from -0.61% in FY24 to -4.33% in FY25. Net Profit Margin declined from -0.43% in FY24 to -4.12% in FY25, reflecting severe operational distress.

EBITDA Margin

Operating Profit Margin of -4.33% indicates core unprofitability, a decline of 3.72 percentage points from the previous year's -0.61%.

Credit Rating & Borrowing

The company is under Corporate Insolvency Resolution Process (CIRP) as per NCLT order dated 22.12.2023. Interest coverage ratio is listed as 'Not Applicable' for both FY24 and FY25.

⚙️ Operational Drivers

Raw Materials

Not specifically named, but 'cost of material consumed' represented 0.7% of total revenue in FY25.

Raw Material Costs

Raw material costs plummeted 99.43% YoY from INR 517.9 lakhs in FY24 to INR 2.93 lakhs in FY25, reflecting a near-total halt in production activities.

📈 Strategic Growth

Growth Strategy

The company is currently focused on the Corporate Insolvency Resolution Process (CIRP) rather than expansion. Future growth depends on the resolution plan approved by the NCLT.

Products & Services

Yarns (as per company name Winsome Yarns Limited).

🌍 External Factors

Industry Trends

The industry is seeing varied changes in customer preferences and is currently impacted by non-supportive global markets.

Competitive Moat

No sustainable moat identified; the company has a negative debt-equity ratio of -1.28 and is in insolvency.

Macro Economic Sensitivity

Highly sensitive to global textile market trends and interconnected global supply chain outbreaks.

Consumer Behavior

Demand is affected by shifting customer preferences in the textile and yarn sector.

Geopolitical Risks

Global textile market interconnectedness makes the business vulnerable to international outbreaks and trade disruptions.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Competition Act and various statutes; mitigates risk through internal and external compliance audits.

Environmental Compliance

Maintains harmony with nature by adopting eco-friendly technologies and upgrading them incidental to growth programs.

Taxation Policy Impact

Current and deferred tax expenses were INR 0 for FY25 due to significant losses.

Legal Contingencies

The company is under Corporate Insolvency Resolution Process (CIRP) initiated by NCLT order dated 22.12.2023. Powers of the Board are currently suspended.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CIRP process. Other risks include foreign exchange fluctuations, interest rate volatility, and the ability to retain the existing talent pool of 167 employees.

Technology Obsolescence Risk

The company monitors technology shifts and upgrades eco-friendly technologies to maintain compliance.

Credit & Counterparty Risk

Debtors' turnover ratio increased significantly to 103.19 in FY25 from 35.86 in FY24, a 67% change.