Konark Synthetic Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS </dhhead>

1. World Economy:

The global economy during the year continued to witness challenges arising from geopolitical uncertainties, volatility in energy prices, supply chain disruptions, and inflationary pressures. While advanced economies faced slowing growth due to tight monetary policies, emerging markets showed resilience driven by domestic demand. Overall, the global growth outlook remained subdued, with concerns around rising interest rates, currency fluctuations, and uneven recovery across regions.

 

2. Indian Economy:

The Indian economy has remained one of the fastest growing major economies despite global headwinds. Growth was supported by government-led infrastructure spending, robust domestic consumption, and policy reforms. However, inflationary trends, high input costs, and global uncertainties had some impact on industrial production and exports. India’s long-term prospects remain strong, supported by demographic advantages, digitalization, and continued focus on manufacturing and self-reliance initiatives.

 

3. Global Textile:

The global textile industry witnessed a mixed trend during the year. While demand from developed markets slowed due to inflation and reduced consumer spending, emerging economies supported moderate growth. Rising raw material prices, particularly cotton and polyester, along with high freight and energy costs, put pressure on profitability across the textile value chain. Sustainability, recycling, and innovation in fabrics continue to be the focus areas for global players to remain competitive.

 

4. Indian Textile:

The Indian textile industry faced challenges in exports due to weak global demand, high input costs, and currency volatility. However, domestic demand remained steady, supported by growth in apparel, home textiles, and technical textiles. Government initiatives such as Production Linked Incentive (PLI) schemes, support for MSMEs, and focus on modernization and sustainability are expected to strengthen the sector over the medium term. India continues to hold a competitive advantage in terms of skilled manpower, large raw material base, and presence across the textile value chain.

 

5. Performance

The overall performance during the year 2024 - 25 was not satisfactory. The detail of financial performance is given in Directors Report.

Business Review

Our Company is setting for the positive growth. Despite competition at global level, there are positive signs for efficient and innovative companies and your company is set to follow the best practices to perform well.

Financial Review

During year under review Company’s sales increased as compared to previous financial year 2023-24.

The Company is looking forward for change in present scenario and increase consumer confidence and grow market consumption along with other cost cutting measures including better finance control, working capital management, etc.

 

6. Outlook:

The market is expected to grow on the back of continued growth in domestic demand and high potential growth in exports. The management is confident of better performance from the financial year 2025-26 onwards.

 

7. Risk and Concerns:

The exercise for evaluating the potential risks for the organization is closely monitored by the management. All identified risks have been classified with respect to their seriousness and probabilities of such risks getting materialized have also been ascertained. In formulating corporate strategies, these risks are duly considered and counter measures are adopted.

Every Sector has both internal & external risk and textile sector is no exceptional to it. Company monitors the external environment & manages the internal environment to mitigate the risks faced by the company.

 

8. Internal Control System & Adequacy:

The Company has proper and adequate system of internal control to ensure that all the assets are safeguarded from loss, damage or disposition. The Company has independent Audit system to monitor the entire operations and the Audit Committee monitors financial statement to ensure that transactions are adequately authorized and recorded, and that they are reported correctly. The Board of Directors considers internal controls as adequate as it regularly review the findings and recommendations of internal audits.

 

9. KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

Particulars	F.Y 2024 -25*	F.Y 2023 - 24	Change in Percentage
Debtors Turnover Ratio	3.26	3.85	0.15
Inventory Turnover Ratio	2.10	2.18	0.04
Interest Coverage Ratio	3.73	14.01	0.73
Net Profit Margin	(0.07)	0.29	1.23
Current Ratio	1.06	1.10	0.03
Return on Capital Employed	(0.03)	0.37	1.09
Return on Net worth	(197.34)	4.66	43.46

 

Note: 1. Above Financial Ratios are based on Standalone Financials of the Company.

 

10. Human Resource Development:

Your Company gives utmost importance to Human Resource. It considers Human Resource as Human Capital and believes in development of Human Resource. Over the years, your Company has developed an environment, which fosters excellence in performance by empowering its people, who are always on continuous improvement path with an ultimate aim to add value to their intellectual and knowledge resources. The key focus is to attract, retain and develop talent as a resource through rewards mechanism, performance evaluation and harmonious & constructive working climate. During the year 2024-25, the Company had 28 permanent employees on its payroll.

 

11. Cautionary Statement:

Statement in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include raw material availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

		For and on behalf of the Board of Directors
		For Konark Synthetic Limited
	Anshul Agrawal	Shonit Dalmia
Place: Mumbai	Non Executive Director	Managing Director
Date: 5th September 2025	(DIN: 02060092)	(DIN: 00059650)