Manomay Tex Indi Management Discussions


Global Economic Overview

The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases.

Source: IMF, World Economy Outlook : April 2023

Global Growth Outlook Projection (In %)

Country/Group 2022 2023 2024
World Output 3.5 3.0 3.0
Advanced Economies 2.7 1.5 1.4
United States 2.1 1.8 1.0
Euro Area 3.5 0.9 1.5
Germany 1.8 -0.3 1.3
France 2.5 0.8 1.3
Italy 3.7 1.1 0.9
Spain 5.5 2.5 2.0
Japan 1.0 1.4 1.0
United Kingdom 4.1 0.4 1.0
Canada 3.4 1.7 1.4
Other Advanced Economies 2.7 2.0 2.3
Emerging Markets and Developing Economies 4.0 4.0 4.1
Emerging and Developing Asia 4.5 5.3 5.0
China 3.0 5.2 4.5
India* 7.2 6.1 6.3
Emerging and Developing Europe 0.8 1.8 2.2
Russia -2.1 1.5 1.3
Latin America and the Caribbean 3.9 1.9 2.2
Brazil 2.9 2.1 1.2
Mexico 3.0 2.6 1.5
Middle East and Central Asia 5.4 2.5 3.2
Saudi Arabia 8.7 1.9 2.8
Sub-Saharan Africa 3.9 3.5 4.1
Nigeria 3.3 3.2 3.0
South Africa 1.9 0.3 1.7
Emerging Market and Middle-Income Economies 3.9 3.9 3.9
Low-Income Developing Countries 5 4.5 5.2

* For India, data and forecasts are presented on a fiscal year basis with FY 2022/23 starting in April 2022.

For the April 2023 WEO, Indias growth projections are 6.6% in 2023 and 5.8% in 2023 based on calendar year.

Source: IMF, World Economic Outlook, April 2023

Global Outlook:

After a strong recovery in 2021 came the severe shock of Russias war in Ukraine and its wide- ranging consequences-global growth in 2022 dropped by almost half, from 6.1 to 3.4 percent.

The slowdown has continued this year. Despite surprisingly resilient labor markets and consumer spending in most advanced economies, and the uplift from Chinas reopening, we expect the world economy to grow less than 3 percent in 2023.

As you will see in our World Economic Outlook next week, growth remains weak by historical comparison-both in the near and medium term. There are also stark differences between country groups.

Some momentum comes from emerging economies—Asia especially is a bright spot. India and China are expected to account for half of global growth in 2023.

Economic activity is slowing in the United States and the Euro Area, where higher interest rates weigh on demand. About 90 percent of advanced economies are projected to see a decline in their growth rate this year.

For low-income countries, higher borrowing costs come at a time of weakening demand for their exports. And we see their per-capita income growth staying below that of emerging economies. That is a severe blow, making it even harder for low-income nations to catch up.

Poverty and hunger could further increase, a dangerous trend that was started by the Covid crisis.

Strong and coordinated monetary and fiscal policy actions over the past years prevented a much worse outcome. But with rising geopolitical tensions and still-high inflation, a robust recovery remains elusive. This harms the prospects of everyone, especially for the most vulnerable people and countries.

Source: IMF

Forces Shaping the near term global Outlook

Slow Global Recovery Amid Divergences:

The global recovery from the COVID-19 pandemic and Russias invasion of Ukraine is faltering, with widening divergences among economic sectors and regions posing significant challenges.

Inflation and Borrowing Costs Persist:

Inflation remains high and continues to erode household purchasing power, while central banks policy tightening in response to inflation raises the cost of borrowing, constraining economic activity.

Financial System and Credit Supply Impact:

While immediate concerns about the banking sector have diminished, high interest rates continue to filter through the financial system, leading banks in advanced economies to tighten lending standards, limiting the supply of credit.

Implications on Public Finances:

The impact of higher interest rates extends to public finances, particularly in poorer countries grappling with elevated debt costs, constraining their ability to invest in priority areas and leading to significant output losses compared to pre-pandemic forecasts.

The fight against inflation continues:

Inflation is easing in most countries but remains high, with divergences across economies and inflation measures. Following the build-up of gas inventories in Europe and weaker- than-expected demand in China, energy and food prices have dropped substantially from their 2022 peaks, although food prices remain elevated. Together with the normalization of supply chains, these developments have contributed to a rapid decline in headline inflation in most countries.


"G20 Achieves Historic Milestone: $100 Billion Pledged in Special Drawing Rights (SDRs) for Poorer Nations"

The G20 last month also announced the achievement of the $100 billion in pledges of special drawing rights (SDRs) to be channelled from richer to poorer countries. Set by the G20 in the wake of the IMFs record $650 billion allocation of SDRs in 2021, meeting this target is a strong signal of broad international solidarity. We should also take inspiration from members who lifted the ambition of their pledges for SDR channelling; France and Japan to 40 percent of their allocations, and China to 34 percent.


Indian Economic Overview

Strong economic growth in the first quarter of FY 2022-23 helped India overcome the UK to become the fifth-largest economy after it recovered from repeated waves of COVID-19 pandemic shock. Rising employment and substantially increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of R 159.71 lakh crore. The growth in GDP during 2022-23 is estimated at 7% as compared to that of 9.1% in 2021-22.

Nominal GDP or GDP at Current Prices in the year 2022-23 is estimated to attain a level of R 272.04 lakh crore, as against R 234.71 lakh crore in 2021-22, showing a growth rate of 15.9%.

Source: MOSPI

Indias economy grew by 6.10% year-on-year in Q3 of FY 23. GDP at Constant (2011-12) Prices in Q4 2022-23 is estimated at Rs.43.62 lakh crore, as against Rs.41.12 lakh crore in Q4 2021-22, showing a growth of 6.1 percent. GDP at Current Prices in Q4 2022-23 is estimated at Rs.71.82 lakh crore, as against Rs.65.05 lakh crore in Q4 2021-22, showing a growth of 10.4 percent. This surge, primarily driven by improved performance in agriculture, manufacturing, mining, and construction sectors, contributed to an annual growth rate of 7.2%. The robust growth propelled the Indian economy to reach $3.3 trillion and sets the stage for achieving the ambitious $5 trillion target in the coming years.

The Indian economy, however, appears to have moved on after its encounter with the pandemic, staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY23. Yet in the current year, India has also faced the challenge of reining in inflation that the European strife accentuated. Measures taken by the government and RBI, along with the easing of global commodity prices, have finally managed to bring retail inflation below the RBI upper tolerance target in November 2022.

The uptick in private consumption has also given a boost to production activity resulting in an increase in capacity utilization across sectors. The rebound in consumption was engineered by the Near-universal vaccination coverage overseen by the government that brought people back to the streets to spend on contact-based services, such as restaurants, hotels, shopping malls, and cinemas, among others. The worlds second-largest vaccination drive involving more than 2 billion doses also served to lift consumer sentiments that may prolong the rebound in consumption.

Indias economic growth in FY23 has been principally led by private consumption and capital formation. It has helped generate employment as seen in the declining urban unemployment rate. Global growth has been projected to decline in 2023 and is expected to remain generally subdued in the following years as well. The slowing demand will likely push down global commodity prices and improve Indias CAD in FY24.

Industrial Growth

Industrial production in India (IIP) grew 1.7 percent year-on-year in March of 2023, declining from an upwardly revised 5.8 percent rise in the previous month.

Negative growth in the electricity segment has restricted the growth in overall industrial output. The above negative growth has been offset by growth in IIP in mining and manufacturing sector by 6.8% and 1.2% respectively.

Source: MOSPI Consumer Price Inflation

The Consumer Price Index measures the retail inflation the economy by collecting data on change in prices of most common goods and services used by consumers. Annual inflation rate in India declined to 6% YoY in March 2023, compared with a rate of 6% in previous month. The inflation rate has remained above the Reserve Bank of India (RBI) tolerance band of 2-6 percent. Higher inflation has been a concern for central banks across the world, including India, as the uncertain nature of the Russia-Ukraine war compounded supply-side disruptions in the post-pandemic world that was barely going through a nascent recovery from economic shocks.

Source: MOSPI

Key Drivers Robust Demand

Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers.

Indias textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.

Competitive Advantage

India enjoys a comparative advantage in terms of skilled manpower and in cost of production, relative to major textile producers.

In June 2022, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Mr. Piyush Goyal, stated that the Indian government wants to establish 75 textile hubs in the country.

Policy Support

100% FDI (automatic route) is allowed in textiles.

Production-linked Incentive (PLI) Scheme worth Rs. 10,683 crore (US$ 1.44 billion) for manmade fibre and technical textiles over a five-year period.

Increasing Investment

Huge funds in schemes such as Rs. 900 crore (US$ 109.99 million) for Amended Technology Up gradation Fund Scheme (ATUFS) have been released by the Government in the union budget of 2023-24 to encourage more private equity investments and provide employment.

Economic Challenges and Policy Priorities

Road Ahead

In the second quarter of FY 2022-23, the growth momentum of the first quarter was sustained, and high-frequency indicators (HFIs) performed well in July and August of 2022. Indias comparatively strong position in the external sector reflects the countrys generally positive outlook for economic growth and rising employment rates. India ranked fifth in foreign direct investment inflows among the developed and developing nations listed for the first quarter of 2022.

Indias economic story during the first half of the current financial year highlighted the unwavering support the government gave to its capital expenditure, which, in FY 2022-23 (until August 2022), stood 46.8% higher than the same period last year. The ratio of revenue expenditure to capital outlay decreased from 6.4 in the previous year to 4.5 in the current year, signaling a clear change in favour of higher-quality spending.

Despite the continued global slowdown, Indias exports climbed at the second highest rate this quarter. With a reduction in port congestion, supply networks are being restored. The CPI- C and WPI inflation reduction from April 2022 already reflects the impact. In August 2022, CPI- C inflation was 7.0%, down from 7.8% in April 2022. Similarly, WPI inflation has decreased from 15.4% in April 2022 to 12.4% in August 2022. With a proactive set of administrative actions by the government, flexible monetary policy, and a softening of global commodity prices and supply-chain bottlenecks, inflationary pressures in India look to be on the decline overall.

Source: IBEF

Growth Drivers

1. Presence of world class infrastructure

Indias production is centered on cotton products, which reduces its chances to take Chinas current position as the world leader in textile manufacturing.

2. Increased focus on technical textiles

Due to growth of end-user industries such as automotive, healthcare, infrastructure and oil and petroleum.

3. Abundance of raw material and availability of skilled manpower.

4. Presence of entire value chains and large and growing domestic market.

5. Competitive manufacturing costs and organised retail landscape & E- Commerce.

6. Rising per capita income, higher disposable incomes and preferences for brands.

Global Textile Market

The global denim jeans market size was worth USD 77.67 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. The denim jeans market is expected to expand due to the continuous evolution of consumer trends and preferences for appealing fashion and beauty coupled with continual companies product innovations with designs, trends, styles, and colors thereby driving the demand for denim jeans. The rise in the sense of fashion among the millennial and baby boomers category has allowed the manufacturers to continually emphasize introducing new and upgraded versions of the same denim jeans.

Study period 2018-2028
Market Size 2023 USD 101.94 Billion
Market Size 2028 USD 125.1 Billion
CAGR (2023-2028) 4.18%
Fastest Growing Market North America
Largest Market Asia Pacific

Indian Textile Market

The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel.

India is the worlds largest producer of cotton. Estimated production stood at 362.18 lakh bales during cotton season 2021-22. Domestic consumption for the 2021-22 cotton season is estimated to be at 338 lakh bales. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers. In FY23, exports of readymade garments (RMG) cotton including accessories stood at US$ 7.68 billion till January 2023. It is expected to surpass US$ 30 billion by 2027, with an estimated 4.6-4.9% share globally.

India stands as the 3rd largest exporter of Textiles & Apparel in the world.

India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the worlds hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 Bn, approximately 6% of the global market. The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 Mn people and 100 Mn people in allied industries.

India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 Bn by 2025, up from $52.7 Bn in 2019.

PLI Schemes

Government has launched the Production Linked Incentive (PLI) Scheme with an approved outlay of INR 10,683 crore to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textiles Industry to achieve size and scale and to become competitive.


• Centre approves 64 applications under the Production Linked Incentive scheme for Textiles.

• In the approved 64 applications, the proposed total investment is INR19,798 crore and projected turnover of INR 1,93,926 crore with a proposed employment of 2,45,362.

• A total of 12 companies have proposed to set-up projects under the said Scheme in Madhya Pradesh, 7 companies in Uttar Pradesh and 4 companies in Rajasthan.

Global Denim Market: Growth and Drivers

The global denim jeans market size was worth USD 70.71 billion in 2021, to expand at a compound annual growth rate (CAGR) of 6.2% from 2022 to 2030. The denim jeans market is expected to expand due to the continuous evolution of consumer trends and preferences for appealing fashion and beauty coupled with continual companies product innovations with designs, trends, styles, and colours thereby driving the demand for denim jeans. The rise in the sense of fashion among the millennial and baby boomers category has allowed the manufacturers to continually emphasize introducing new and upgraded versions of the same denim jeans.

The global denim jeans market is highly competitive and fragmented with a large number of players in the market. Major players are investing in research & development to develop innovative technologies to make instruments that are easy to use and of better quality in terms of sound quality. Furthermore, companies are also implementing strategies such as mergers & acquisitions, joint ventures, training workshops for schools or organizations, and expansions to increase sales.

Europes Growing Fashion Market: Unveiling New Opportunities

The market in Europe is expected to witness newer opportunities over the forecast period as the region is one of the worlds largest fashion hubs and hosts popular fashion events and celebrity events that feature popular influencers and celebrities. For example, the denim collection was part of the most talked-about Spring/Summer 2022 collections in Milan, London, and Paris fashion weeks. The loose-fitting jeans and double-denim ensembles maintained their place and dominated trends in London, Milan, and Paris. The fashion shows and occasions are held frequently to represent modern fashion trends in the beauty and apparel industry and thus showcase exquisite dressing styles evolving from vintage style jeans to straight jeans.

Indian Denim Market

The Indian denim market has been experiencing steady growth, with a consistent compound annual growth rate (CAGR) of 15% to 18% per year.

The term apparel or garment would include ready-made garments as well as knitwear/hosiery. The garment industry is classified as those establishments which cut and/ or stitch/ make up garments out of woven or knitted fabrics without being involved in the manufacture of fabrics. All these garments can be broadly classified into 3 categories. Formals, Casuals and Designers. Formal range of garments refers of those dresses, which are worn at offices and other sober places of visit. Casual garments refer to that breed of dresses whose styles are generally nonconformist with normal features of oversized pockets, pockets with flaps, larger front buttons, loose fit etc.

Production Capacity: Quality 105 lakh pieces (per annum)

Value: Rs.285 Lakh

Market Share Domestic: 17% of Worlds population

SWOT Analysis in Denim Market Strength

• Rising Disposable Income

• Rapid Growth in retail sector

• Westernization trend and fashion preferences

• Booming internet retailing sector

• Young population demographics and higher spending power

• Increasing usage of denim products in smaller cities and rural areas


• Less availability of raw material

• Increased in price of raw material


• Growing demand for premium and super-premium denim products

• Export potential and global market share

• Potential for increasing Indias share in the global market

• Technological advancements and innovation in denim manufacturing

• Government initiatives and support for the textile industry

• Collaborations and partnerships with international brands

• Focus on sustainable and eco-friendly denim production


• Competition from domestic and international players

• Pricing challenges and cost pressures

Company Overview

Our Company was founded on April 13, 2009, as a private limited company called Manomay Tex India Private Limited, and it was later transformed to a public limited company on January 6, 2017. We primarily manufacture and sell denim fabrics in domestic and international markets, and have an integrated production operation in Rajasthan. Our Company has ventured into 14+ overseas markets, and our customer base is currently distributed across India as well as places such as South 79 America, the Middle East, and Asia. In the textile sector, we are known and recognized by the BRAND NAME MANOMAY.

Our Company started its commercial production by setting up a fabric weaving unit in Ichalkaranji by installing eight air-jet looms. Thereafter in 2011, the Company set up its integrated manufacturing unit for production of denim fabric in Jojron Ka Khera near Bhilwara. The unit is spread over 2.03 hectares and is equipped with dyeing, weaving and finishing facilities of yarn/ fabric. The denim manufactured by us ranges from 9 to 14 Oz/ Sq. yd. with different blends of cotton, polyester, etc. with foam and wet finishes.

The unit is equipped with adequate facilities and machineries. At Ichalkaranji unit, we are focused on manufacturing of suiting fabrics of different qualities as per the market demand. We procure the raw materials i.e. yarn from the local suppliers and weave to form fabric cloth. The process of sizing, dyeing and finishing is outsourced to the third parties.

Our promoters have experience in the line of business and look after strategic as well as day to day business operations. Over the years our Company has carved its foot prints in the industry which can be witnessed by the 100x growth in our total revenue from Rs. 576.93 lakhs in 2010 to Rs. 69,922.92 lakhs in 2023. Our integrated manufacturing facility and our relationship with our traders are key factors of success in the industry. Our brand has been well received until now and we shall, continue to endeavour to build brand equity by supplying qualitative products at competitive prices.

Our Success Story and Future Plans

The year 1978 witnessed the launch of Dhanlaxmi Group aiming to make a mark in the Indian and International textile industry with quality production of Denim. In the span of next 30 years, we came up with a varied set of high-end technology which included installing Auto Looms, and achieved a specialization in Cotton Dhoties. These 43 years were spent on establishing ourselves, which resulted in strengthening a strong foundation for marketing our products and eventually reaching to a wider audience.

With all the raw material in hand, we ventured ourselves into the marketing area of Denim Textile with our newest weaving plant. The installation of this plant gave our company the head start we wanted to keep the momentum going with a production capacity of 36 Million Meter Per Annum. The year 2012 was our gateway into the Denim textile world when we launched our first Denim plant at Chittorgarh (Rajasthan). As the commercial production took an upward turn, it resulted in the introduction of new Denim machineries. As the production capacity grew larger, we converted ourselves from a Private Limited to Public Limited to serve our customers better.

Equity share of our company got listed on BSE SME Platform in 2017 and we installed new auto airjet looms alongside Indigo dyeing machineries. Since then, we have been working towards commercializing our production, and focusing on the expansion. This has been hugely contributed by installing new and advanced technological machineries to constantly upgrade our quality standards.

Company had replaced 36 outdated Looms at Plant Site Aaraji No.5, 6, 7 Gram- Jojro ka Khera TehsilGangrar Dist:-Chittorgarh - 312901 Rajasthan. This has resulted in an increase of our production capacity and has had a major positive impact on sales.

The Company has also applied for Registration of 1.1 MW Solar PV Power Project at Plant Aaraji No.5,6,7 Gram-Jojro Ka Khera Tehsil-Gangrar, Dist.:-Chittorgarh (Rajasthan) for captive use under Rajasthan Solar Energy Policy, 2019 and the registration af the same is approved by Rajasthan Renewable Energy Corporation Limited on 6th July,2022.

In the year 2022-23 Company has migrated from BSE Limited SME to BSE Limited mainboard and direct listing in NSE Limited mainboard. And also raised capital through Preferential issue of Rs.35 Crore. And ongoing Process of installation of Spinning Plant.

Two Star Export House

Our company got status of Two Star Export House from Government of India, Ministry of Commerce & Industry, and Directorate General Foreign Trade Authority. This Certificate is valid for a period of five years effective from 30.01.2019 to 29.01.2024.

SWOT Analysis Strenghts

1) Integrated Manufacturing Facility: allowing us to carry on all the facilities in house i.e. from winding and warping of yarn to dispatch of the fabric.

2) Our Experienced Management: through their constant efforts, we have been able to build a sustainable business model.

3) Locational Advantage: enables us to procure the raw materials at easy availability with cost efficiency, boost our marketing activities and add value to our revenues due to established market for textiles.

4) Qualitative Products: strive to have least tolerance for any manufacturing defect which has helped us in retaining our existing customers and developing new customers

5) Existing relationship with the clients: we are engaged in B2B business model, our existing client being traders provides us repeated orders. We trust that our existing relationship and goodwill amongst our traders serves as a competitive advantage in gaining new clients and increasing our business with existing clients.


1) An increase in mid-market / value shops has a detrimental influence on higher-end retailers and increases the potential to offer lower-end brands.

2) Price fluctuations to keep up with changing demands and trends.

3) Scarcity of trained labour.

4) An increase in unit cost, as well as high tariff barriers and export penalties.


1) The textile and apparel industry is expected to grow to US $190 billion by FY26.

2) Urbanization is expected to support higher growth due to change in fashion and trends.

3) According to Union Budget 2022, there is a total allocation of Rs.12,382 crore for the textile sector for next financial year, Rs.133.83 crore is for Textile Cluster Development Scheme, Rs.100 crore for National Technical Textiles Mission, and Rs.15 crore each for PM Mega Integrated Textile Region and Apparel parks scheme and the Production Linked Incentive Scheme.

4) The PLI Scheme, worth INR 15 crore, is likely to provide a major boost for textile manufacturers. The scheme proposes to incentivise MMF (man-made fibre) apparel, MMF fabrics and 10 segments of technical textiles products.


1) High Competition: The market is saturated with established brands.

2) When competitors offer cheaper prices, it is difficult to strike a balance between price and quality.

3) Due to pollution concerns, certain factories in China and Europe have been shut down, resulting in a spike in the price of basic raw materials.

4) There are also other factors influencing raw material supply, unpredictable market conditions, weather, policies, and other factors have resulted in an increase in raw material costs.

Financial Performance & Analysis

(Rs. In Lakhs)
Particulars For the year ended 31-03-2022 For the year ended 31-03-2023
Revenue from operations 58,953.15 69,887.88
Other Income 35.01 35.04
Total Revenue 58.988.16 69,922.92
Earnings before interest, taxes depreciation and amortization 2,948.72 4,190.10
Earnings before interest and taxes 2,064.19 3,043.11
Profit before Taxation 1,190.59 1,611.07
- Current Tax 463.47 473.94
- Deferred Tax (43.50) (157.91)
Net Profit/ (Loss) For The Year 770.62 1,295.04

Following are important ratios showing better performance in FY 2023:

Particulars Units FY 2021 FY 2022 FY 2023
Profitability Ratios
EBITDA Margin % 5.49% 5.00% 6.00%
EBIT Margin % 3.32% 3.50% 4.35%
Net Profit Margin % 0.86% 1.31% 1.85%
Growth Ratios
Total Revenue % -20.80% 83.51% 18.55%
EBITDA % -31.41% 67.23% 42.10%
EBIT % -33.16% 93.76% 47.42%
Net Profit % -59.36% 179.75% 68.05%
Net worth*1 % 4.70% 13.20% 70.90%
Liquidity Ratios
Quick Ratio Times 1.00 0.82 0.98
Current Ratio Times 1.55 1.34 1.52
Return Ratios
Return on Equity % 4.48% 12.06% 14.09%
Return on Capital Employed*2* % 2.37% 5.25% 6.63%
Return on Assets % 1.28% 2.85% 3.62%
Leverage Ratios
Debt to Equity(3) Times 1.53 2.08 1.25
Debt to EBITDA Times 5.32 4.79 3.47
Interest Coverage Times 1.60 2.36 2.13
Debt to Assets Times 0.43 0.44 0.37
Efficiency Ratios(4)
Asset Turnover Times 1.55 2.18 1.95
Receivable Turnover Times 4.77 5.95 5.26
Receivable Days Days 77 61 69
Inventory Turnover Times 3.56 7.60 7.04
Inventory Days Days 103 48 52
Payable Turnover Times 4.25 8.15 6.89
Payable Days Days 86 45 53
Cash Conversion Cycle Days 93 65 68

(1) Net worth has been calculated as share capital + reserves & surplus.

(2) Capital employed has been calculated as Total assets less current liabilities.

(3) Total debt includes long term, short term and current maturity of long term debt.

(4) For calculating efficiency ratios average receivables, payables & inventory has been considered

Revenue from Operation: The Revenue rose by 18.55% from Rs. 58,953.15 Lakhs in the financial year 2021-2022 to Rs. 69,887.88 lakhs in the financial year 2022-23 and the company was able to generate more revenue than its average revenue in last 4 years. In last 3 years company has provided with growth of 19.90% CAGR. The growth in revenue attributed to the change in market scenario, opening up of the economy. While the growth rate was lower than the exceptional growth seen in 2022, it still signifies a healthy expansion in sales. The same can be reflected from the below bifurcation:

(Rs. In lakhs)
Particulars For the year ended 31-03-2022 For the year ended 31-03-2023 % Growth
Domestic Sale 22,043.11 42,533.91 92.96%
Export Sale 34,779.98 25,305.13 -27.24%

Also the rise in revenue is attributable to few other reasons such as replacement of existing machinery leading to increased efficiency and multiple orders from the loyal customers.

Other Income: Other income for the financial year 2022-23 increased by 0.08% at Rs. 35.04 lakhs as compared to Rs. 35.01 lakhs in the previous year.

EBITDA: The (EBITDA) before exceptional items increased by 42.10% at Rs. 4,190.10 lakhs for the financial year 2022-23 as compared to Rs. 2,948.72 lakhs for the financial year 2021-22. This was mainly due to increase in Revenue. On the other hand the EBITDA Margin has also increased from 5.00% for the financial year 2021-22 to 6.00% for the financial year 2022-23.

Profit after Tax: Profit after Tax (PAT) including Other Comprehensive Income at Rs 1,295.04 lakhs for the financial year 2022-23 increased by 68.05% as compared to Rs. 770.62 lakhs in the previous year majorly due to the increase in revenue from operations.

Growth Ratios: The EBITDA has grown by 42.10% mainly due to growth in revenue. The EBIT or operating profit has grown by 47.42% and overall net profit has grown by 68.05% mainly due to following reasons discussed above. Decreased in financial growth rates compared to the previous year were primarily attributable to the introduction of an unsecured loan.

Liquidity Ratios: Both the Current ratio and Quick ratio have been constant for past 3 years. Hence it signifies that the company is fully equipped to meet it short term obligations efficiently. We have not been facing cash crunch in the short term which is leading to a higher liquidity performance.

Return Ratios: Return Ratios measures how effectively an investment is being managed by the company so that highest possible return is generated on the investment. The above three return ratios: ROE, ROCE and ROA have increased sharply indicating that the company is making efficient use of the resources available to it to generate profits. ROE has increased due to sharp rise in net profit by 68.05% compared to net worth which has risen by 70.90% from Rs. 6,784.10 lakhs In FY 2022 to Rs. 11,593.73 lakhs In FY 2023. The ROCE has increased on account of increase in operating profit by 47.42%. The ROA has similar reason for rise due to increase in net profit while assets stood at Rs. 32,234.51 lakhs In FY 2022 and Rs. 39,297.92 lakhs In FY 2023.

Leverage Ratios: Leverage ratio provides an indication of how the companys assets and business. Operations are financed (using debt or equity). Looking at the leverage ratios it could be concluded that the company has increased its debt leverage but at the same time it has sufficient interest coverage and have been able to generate enough profits to meet its interest expenses. Hence, performed well on solvency front.

Efficiency Ratios: Operational performance remains quite favourable. The company aligns well with industry parameters. The companys operational efficiency showed mixed results. While receivable days increased 61 days in FY22 to 69 days in FY23, indicating potentially delayed payments from customers, inventory days also saw a slight rise from 48 days in FY22 to 52 days in FY23. On the other hand, payable days increased significantly from 45 days in FY22 to 53 days in 2023, suggesting extended time to settle obligations. Consequently, the overall cash conversion cycle increased from 65 days in FY22 to 68 days in FY23, primarily due to the interplay of receivable and payable dynamics. This shift may be attributed to market fluctuations and debtor-creditor relations.

Liquidity: Cash balances increased to Rs.1,416.99 Lakhs in the financial year 2022-23 as compared to Rs. 39.99 Lakhs in the previous year.

(Rs. In Lakh)
Particular For the year ended 31-03-2022 For the year ended 31-03-2023
Net Cash Generated from Operationg Activities (A) (935.02) 1,169.13
Net Cash used in Investing Activities (B) (2,958.23) (2,293.88)
Net Cash Generated from Financing Activities (C) 3,902.32 2,501.75
Net increase/decrease in cash (D=A+B+C) 9.07 1,377
Cash & Cash Equivalent at the Begining (E) 30.90 39.99
Cash & Cash Equivalent at the End (F=D+E) 39.99 1,416.99

*Particulars mentioned above are in line with year ended 31st March, 2023 Segment wise Performance

The Management reviewed the disclosure requirement of segment wise reporting and is of the view that since the Companys products are covered under Textile Industry which is single business segment in terms of AS-17 and therefore separate disclosure on reporting by business segment (product wise) is not required.

Internal Control System and their adequacy

The Company considers that internal control is one of the keys supports of governance which provide freedom to the management within an outline of appropriate checks and balances. Our Company has a strong internal control framework, which was instituted considering the size, nature and risk in the business. The Companys internal control environment provide assurance on efficient conduct of operations, security of Assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records, timely preparation of authentic financial information and compliance with applicable laws and regulation. The Internal Auditor is responsible to conduct regular internal Audit and report to the management the lapses, if any and submit Report on periodic basis to the Board of Directors for their review and comments. Fully professional and experienced boards as mentioned in the corporate overview section in itself ensures efficient internal control. To ensure efficient internal control system, the Company has a well constituted Audit committee who at its periodical meeting, review the competence of internal control system and Procedures thereby suggesting improvement in the system and process as per the changes of 85 Business dynamics. The system and process are continuously improved by adopting best in class processes, automation and implementing latest IT tools.

Risk Management

The Company is exposed to specific risks that are particular to its business and environment within which it operates, including Foreign Exchange Risk, Interest Rate Risk, Commodity Price Risk, Risk of Product Concentration and other Business Risk. While risk is an inherent aspects of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measure for its mitigation including business portfolio risk, financial risk and legal risk and internal process risk.

The list of the potential risks the industry is exposed to domestically/internationally are given below:

Business Operational Risk:

The business operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events like economic and market conditions, cut throat competitions at local as well as at international level, introduction of new players in textile markets, even events which are not directly connected with the organization like natural disasters, political and military turmoil etc. It can be minimized by decreasing labour turnover, power cost, logistics, balancing demand & supply risks, implementing latest technologies to create new and innovative designs of textile products, techniques required to upgrade plants, boiler house, machines, equipment.

Un-interrupted availability of raw material at competitive prices so as to avoid production loss, maintenance of quality and harmonizing production for completing the orders in time as well. Fluctuations in yarn prices in international market which can impact the price / cost of a particular product(s) and its blend(s) is also a part of business operational risk.

Raw material risk:

There is always a risk of inadequate or non-availability of raw materials in the market due to volatility in the prices of cotton, transportation cost etc. which could impede business profits and prospects.

Supplier Risk:

We rely heavily on third parties to source our raw materials. Third-party suppliers provide us with our key raw materials, which are cotton yarns and synthetic yarn. In addition, we use third-party job work facilities or carry out a few procedures such as dyeing, sizing, and finishing of our products by ourselves as well at our manufacturing unit and, if necessary, weaving at our Gangrar, Dist:-Chittorgarh unit. The quality of our fabric is mainly dependent on the quality of our raw materials. Though we feel that Bhilwara, as a textile hub, will have no trouble finding new suppliers if needed, there is no guarantee that our existing or potential suppliers, job employees will continue to supply us with the appropriate quantity of raw materials and services.

Manufacturing Risk:

Our manufacturing facility at Aaraji No.5, 6, 7 , Gram- Jojro ka Khera Tehsil-Gangrar Dist:- Chittorgarh-312901 Rajasthan, is vulnerable to operational risks such as machinery unavailability, breakdown, obsolescence, or failure, disruption in power supplies or processes, performance below projected levels of efficiency, and labour disputes. Our machines have finite lifespan as well as annual over hauled maintenance. Replacement parts for such machinery may not be available in the case of a breakdown or failure, and such machinery may have to be sent for repairs or servicing. We have signed into technical support service agreements to ensure the proper operation and maintenance of our equipment and machinery. We replaced 36 outdated Looms at Plant Site Aaraji 86 No.5, 6, 7, Gram- Jojro ka Khera Tehsil-Gangrar, Dist:-Chittorgarh - 312901, Rajasthan. This has resulted in an increase in our production capacity and has had a major positive impact on sales.

Quality Risk:

Our products are influenced by consumer expectations, customer preferences, and fashion industry trends. Failure to maintain our product quality standards may have an impact on our business. Even though we have strict quality control methods in place, we have deployed lab testers to ensure that our products will always meet our clients quality standards

Foreign Exchange / Currency risk:

We are certainly vulnerable to foreign currency exchange rates, which could have a major unfavourable effect on our operating results and financial situation.

Our company has recently expanded into international markets and now sells products both domestically and internationally. Exporting our goods allows us to acquire foreign exchange gains and outgo in terms of FOB value. The exchange rate between the Rupee and other currencies fluctuates and may continue risk in our revenue. Any adverse or unexpected swing in the exchange rate of any foreign currency to Indian Rupees for businesses in order to correctly hedge their positions with international institutions may have an impact on our Companys results of operations.

Competition Risk:

We confront competition in our industry from both organised and unorganised companies, which could have a negative impact on our business operations and financial situation. Furthermore, we are primarily located in Gangrar Dist:-Chittorgarh and Bhilwara (Rajasthan), which is regarded as the nations textile heartland, with a large textile business in an unorganised sector, particularly on a small and medium size.

There are numerous major corporations in the textile business, which adds to the competitiveness for companies like us. We largely compete based on quality, client happiness, and marketing. We think that to compete effectively, we must preserve our reputation, be flexible and timely in responding to quickly changing market demands and consumer preferences and provide customers with a diverse range of textiles at competitive rates.

Customer concentration Risk:

Our top five clients provided more than 60% of our gross revenue, while our top ten customers contributed more than 75%. Any fall in revenue, rising competition, or change in demand for our services by these clients may have a detrimental effect on our ability to keep them. However, the mix and income generated by these clients may alter as we continue to add new customers in the normal course of business. Over time, our company and management have been able to retain and strengthen these business connections. We believe that we may not have anticipated significant obstacles in continuing our commercial relationship with them or obtaining new consumers.

Global Risk:

We do not have an offshore office or company location where we can manage our export operations. Our products are sold in both domestic and foreign markets. However, because we lack an offshore office, we may be unable to capitalise on opportunities presented by the evolving worldwide garment market and our consumers in a timely manner. Our companys operations are managed from its registered office at Bhilwara (Rajasthan), Branch Office at Ichalkaranji (Maharashtra) and Primary Manufacturing facilities at Gangrar Chittorgarh (Rajasthan). Our company does not have a corporate office or a place of business in another country, but we have recruited agents in other countries to handle our business operations. As a result, we may be able to efficiently extend our business in the foreign market, resulting in higher operational outcomes and profitability.

Political Risk:

Political risk may be defined as the probability that a political event will impact adversely on a firms profit. It represents the financial risk that a countrys government will suddenly change its policies.

Technological risk:

Technology can response corporate culture and facilitate innovative procedures. In a garment manufacturing industry, the firm is constantly required to make changes and transformations in the production process over time, upgrade their machinery besides creating new facilities and additional capacities in order to survive in the highly competitive market.

Human Resource Development/Industrial Relation:

The Company rely that the health and safety of the workers and the persons residing in the vicinity of its plants is fundamental to the business. Commitment to the identification and elimination or control of the workplace hazards for protection of all is utmost importance. The manufacturing operations are conducted to ensure sensitivity towards the environment and minimize waste by encouraging "Green" practices. The Company continued to enjoy healthy industrial relations during the year.

Health & Safety:

Health and Safety measures play an important role in any industry. It is essential that the workers be aware of the various occupational hazards in the industry. At the same time, it is necessary that the management take the necessary steps to protect workers from potential hazardous situations.

The Company continues to accord the highest priority to health and safety of its employees & etc. and communities it operates in. The Company has been fully committed to comply with all applicable laws and regulations and maintains the highest standard of Occupational Health and Safety and ensures safer plants by conducting safety audits, risk assessments and periodic safety awareness campaigns and training to employees. We believe in good health of our employees. Modern occupational health and medical services are accessible to all employees through well-equipped occupational health centers at manufacturing unit. The Company has always considered safety as one of its key focus areas and strives to make continuous improvement on this front. The company believes Health & Safety as an indispensable province. Company has provided appropriate facilities for all workers and employees like proper lighting, ventilation, no congestion, medical kits, stretchers, fire extinguishers etc. at prominent places. Personnel at supervisory level have been trained in basic life support techniques.


The company is equipped with modern infrastructure facilities which assist in smooth production. The companys manufacturing unit is outfitted with advanced machines and equipment and a trained staff, who have years of experience behind them. To sell products to the clients, the company has facilitated a smooth transportation mechanism through a strong base of transporters and traders.

Social Responsibility Issues for the Company (CSR)

As a part of society, the company covers certain thrust areas such as Tree Plantation, Eradicating of hunger and Malnutrition, Promoting Education, Ensuring Environmental Sustainability, Making Available Safe Drinking Water, Promoting Health Care Including Preventive Health Care & etc. Which are in accordance with CSR Policy of the Company and Schedule VII of The Companies Act, 88 2013. For this our company has developed a CSR scheme and spends at least 2% of its average profit since last three years, every year.

Cautionary Statement

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, important factors that could make a difference to the Companys operations which include finished goods prices, raw materials costs and availability, global and domestic demand supply conditions, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts, fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company. The Company assumes no responsibility in respect of the forward looking statements herein, which may undergo changes in future based on subsequent developments, information or events.

Sd/- Sd/- Sd/-
Kailashchandra Hiralal Laddha Yogesh Laddha Mrs. Pallavi Laddha
(Chairman) (Managing Director) (Whole Time Director)
DIN: 01880516 DIN: 02398508 DIN:06856220