💰 Financial Performance

Revenue Growth by Segment

The Group operates in a single business segment: manufacturing, retailing, and trading of men's clothing and accessories. Standalone revenue from operations grew 19.98% YoY, reaching INR 172.91 Cr in FY 2024-25 compared to INR 144.12 Cr in FY 2023-24.

Geographic Revenue Split

Export performance contributed INR 104.97 Cr, representing approximately 56.7% of the total standalone income of INR 184.91 Cr for FY 2024-25. The company maintains international operations in London, Dusseldorf, and New York.

Profitability Margins

Operating Profit Margin was 57.52% in FY 2024-25, a slight decrease from 57.99% in FY 2023-24. Net Profit Margin remained negative at -21.80% in FY 2024-25 compared to -22.99% in the previous year, primarily due to high fixed costs and demand headwinds.

EBITDA Margin

EBITDA improved YoY as reflected in the interest coverage ratio moving from -1.43 to -0.81. However, the company continued to report an operating loss before working capital changes of INR 5.23 Cr for H1 FY 2025-26.

Capital Expenditure

Historical CAPEX was INR 14.69 Cr (FY 2013-14). Current major plans include a fully integrated production facility in Bangladesh scheduled to commence operations by August 2025 to serve price-sensitive export markets.

Credit Rating & Borrowing

CARE Ratings revised the long-term bank facilities rating to 'CARE BB; Negative' from 'CARE BB+; Negative' in August 2024. CRISIL Ratings assigned an 'Outlook Stable' with a belief that promoter experience will support the group.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include fabrics and clothing accessories (buttons, threads, zippers) required for men's apparel. Exact percentage of total cost per material is not disclosed.

Import Sources

Raw materials are sourced globally, with specific mentions of trade contacts in the EU, the US, and manufacturing operations in Bangladesh.

Capacity Expansion

The company is expanding its manufacturing footprint with a new fully integrated facility in Bangladesh, scheduled to be operational by August 2025.

Raw Material Costs

Raw material costs and availability are cited as critical factors impacting operations, though specific YoY cost change percentages were not provided.

Manufacturing Efficiency

Manufacturing efficiency is being addressed through the deployment of technology and the shift of production to lower-cost regions like Bangladesh.

📈 Strategic Growth

Expected Growth Rate

15.50%

Growth Strategy

Growth will be driven by the commencement of the Bangladesh facility in August 2025 to capture price-sensitive markets, the deployment of data analytics and CRM tools for personalized brand experiences, and leveraging 7 decades of promoter experience to expand retail and international marketing operations.

Products & Services

Manufacturing, retailing, and trading of men's clothing (shirts, trousers, suits) and accessories (ties, belts).

Brand Portfolio

Zodiac, ZOD!, Z3, and Metropolitan Trading Co (under license).

New Products/Services

New product launches are focused on sustainable and technologically enhanced apparel, though specific revenue contribution percentages are not disclosed.

Market Expansion

Targeting price-sensitive export markets through the Bangladesh facility and expanding digital engagement platforms for domestic retail.

Strategic Alliances

Trademark license agreement with Metropolitan Trading Co.

🌍 External Factors

Industry Trends

The Indian textile and apparel sector is benefiting from global tailwinds and a shift toward sustainability and digital transformation. The industry is evolving through data-driven customer relationship management.

Competitive Landscape

The company competes in the premium and mid-range men's apparel market against both domestic and international brands.

Competitive Moat

The company's moat is built on over 70 years of promoter experience, established long-standing relationships with global clients, and a fully integrated manufacturing-to-retail model.

Macro Economic Sensitivity

Highly sensitive to global demand-supply conditions and changes in government regulations and tax structures.

Consumer Behavior

Shift toward personalized, seamless, and enduring brand experiences driven by digital engagement and ecological responsibility.

Geopolitical Risks

Protracted geopolitical tensions are identified as a major threat to global supply chains and export demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changes in government regulations, tax structures, and international trade agreements, particularly with the EU and the US.

Environmental Compliance

The company emphasizes ecological responsibility and sustainability in its growth strategy, though specific ESG compliance costs are not disclosed.

Taxation Policy Impact

The company recorded a deferred tax charge of INR 5.81 Cr in FY 2024-25 compared to a credit of INR 0.25 Cr in FY 2023-24.

Legal Contingencies

The company notes litigation as a risk factor, but specific pending court cases or case values were not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Key risks include sustained operating losses (PBT loss of INR 34.50 Cr in FY 2024-25) and demand headwinds impacting the ramp-up of revenue.

Geographic Concentration Risk

Significant exposure to international markets, with exports accounting for over 56% of standalone income.

Third Party Dependencies

Dependency on trademark licenses (Metropolitan Trading Co) and global vendors for raw materials.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in data analytics and digital engagement platforms to stay competitive.

Credit & Counterparty Risk

Debtors Turnover Ratio improved to 7.94 in FY 2024-25 from 6.12, indicating improved receivables management.