Management Discussion and Analysis Report
OVERVIEW OF THE BUSINESS:
New Light Industries Limited (formerly known as New Light Apparels Limited) is an ISO 9007:2015 certified, a BSE Listed company specialized in manufacturing garments, tailored apparel and uniforms. With an efficient production process, we deliver high-quality school uniforms, sportswear, and corporate uniform to clients worldwide, meeting industry benchmarks for excellence.
Our story began with a vision to pioneer trendy apparel manufacturing. Over the decades, we have evolved into a leading exporter and supplier of a diverse range for men, women, and children garments - from woolen sweaters and gloves to socks and industrial safety gears. We have diverse product range. Keeping pace with the latest fashion pulse, our designs embrace contemporary styles, vibrant colors, and soft, skin-friendly textures that offer a comfortable fit.
OVERVIEW OF GLOBAL ECONOMY:
The apparel and textile industry are a cornerstone of the global economy and a significant contributor to Indias GDP. During 2024, the global economy showed stability despite navigating economic, international relations, and governmental challenges. The World Economic Outlook report by the International Monetary Fund (IMF) indicated global GDP growth at 3.3%. While expansion slowed in more established nations, developing economies, particularly in Asia, generally sustained stable growth. The global economic landscape in 2024 was characterized by persistent difficulties. Key among these were ongoing geopolitical tensions, including the conflict in Ukraine and disruptions impacting shipping in the Red Sea. Additionally, complications in international supply chains and trade disputes between major economies presented continued challenges.
INDIAN TEXTILE INDUSTRY:
The fundamental strength of Indian textile industry is its strong production base with wide range of fibers/yarns. These are natural fibers such as cotton, jute, silk and wool and synthetic/man-made fibers like transnational, manufacturers play the central roles in coordinating production networks. Textile industry is capital- and technology-intensive comparable with automobiles, aircraft, computers, semiconductors and heavy machinery industry. Buyer-driven value chains are those in which large retailers, marketers and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in developing countries.
Technological advancements are also driving opportunities in the industry. The adoption of automation, artificial intelligence, and sustainable practices can enhance production efficiency, reduce costs, and improve product quality. Investment in modern machinery and infrastructure, such as the development of textile parks and clusters, promises to attract investment and streamline supply chains. Additionally, the rise of e-commerce platforms offers new avenues for reaching broader audiences and tapping into emerging consumer segments, while digital marketing strategies can enhance brand visibility and drive sales.
In rural and semi-rural areas, opportunities lie in promoting traditional handloom and handicraft textiles, which can attract niche markets both domestically and internationally. This not only supports local economies but also preserves traditional practices. Government initiatives, including subsidies, tax benefits, and export incentives, further bolster the industrys growth potential. Embracing sustainability through ecofriendly textiles and circular economy practices can appeal to environmentally conscious consumers and open new market segments.
With the global apparel market expected to reach USD 2.37 trillion by 2030, a CAGR of 8% and the global textile and apparel trade projected to grow to USD 1.2 trillion, opportunities for international expansion are set to increase. Domestically, the Indian textile and apparel market is anticipated to grow at a strong CAGR of 10%, reaching USD 350 billion by 2030, with exports contributing USD 100 billion - offering a significant boost to companies with global ambitions. Additionally, the technical textiles sector is poised for substantial expansion, with the global market projected to hit USD 309 billion by 2047.
Specifically, the Indian medical textiles segment, expected to grow at 15% annually, signals rising demand in high- value, specialized applications. For companies in the textile industry, this growth trajectory highlights an ideal environment for scaling operations, diversifying product lines, and tapping into both traditional and emerging high-margin markets.
INDIAN TEXTILE INDUSTRY GROWTH OPPORTUNITIES:
Indias expanding domestic market, fueled by a growing middle class, e-commerce growth, and Gen Z consumption trends, is driving strong demand.
Government initiatives like PM MITRA Parks, the PLI Scheme, and RoSCTL are boosting investment and expansion in the textile sector.
Indias textile exports could grow from USD 45 billion to USD 100 billion, creating up to one million jobs annually through 2030.
Recent state policies in the Uttar Pradesh, Bihar, Odisha & Madhya Pradesh offer substantial incentives, including capital subsidies, employment support, and tax exemptions, in order to encourage the establishment of textile units lead to job creation.
Indias growing emphasis on textile recycling and the circular economy offers a chance to promote sustainable manufacturing and generate green jobs.
The UK imports USD 20 billion in textiles, with India holding a 5% share. The FTA strengthens Indias position against Bangladesh and Vietnam.
INDIAN TEXTILE INDUSTRY THREATS:
Indias export competitiveness remains low, trailing China, Vietnam, and Bangladesh due to high production costs, lower labour efficiency, fragmented supply chains, and weak vertical integration.
India faces supply chain and cost challenges, with a fragmented cotton supply raising logistics costs and high raw material prices making man-made fibres like polyester and viscose costlier than in China.
Complex regulations and trade barriers, including burdensome export procedures and limited FTAs, disadvantage India against competitors like Vietnam in major markets.
Rising sustainability norms, led by global brands and strict EU regulations, challenge Indian MSMEs, especially in meeting demands for green sourcing, renewable energy, and recycling.
Fast fashion and rising textile waste pose growing concerns, with Indias recycling market still small despite expected growth amid global waste projections for 2030.
Labour issues like increasing minimum wages, high attrition and migrant worker challenges cause workforce instability, with shortages in textile hubs and under utilised surplus in other states.
Sustainability compliance costs are rising as global regulations demand stricter environmental and labour standards, increasing production expenses.
MARKET DYNAMICS:
The Indian apparel market is one of the largest in the world, valued at over $100 billion. It has been experiencing steady growth and is expected to continue expanding at a compound annual growth rate (CAGR) of around 7-8% over the next few years.
> Key Drivers of Growth-
Urbanization and Lifestyle Changes: Rapid urbanization and changing lifestyles are driving demand for fashionable and trendy clothing.
Growing E-Commerce: The rise of online shopping platforms has revolutionized the apparel industry, providing a wide reach and convenience to consumers. E-commerce is expected to continue growing, with online sales contributing significantly to overall revenue.
Youth Demographics: India has a large young population that is highly fashion-conscious and increasingly influences apparel trends.
> Industry Structure and Developments-
The Indian apparel industry is one of the largest in the world, with a rich history of textile production and a diverse consumer base. However, the industry has faced several headwinds:
Shift in Consumer Preferences: There has been a noticeable shift towards casual wear, athleisure, and sustainable fashion. Consumers are increasingly valuing quality and ethical production practices over price.
E-commerce Penetration: The rise of e-commerce has transformed the retail landscape, with online sales becoming a significant portion of overall apparel sales. The COVID-19 pandemic accelerated this trend, with many consumers opting for online shopping over traditional brick-and-mortar stores.
Raw Material Prices: Fluctuations in the prices of raw materials such as cotton and synthetic fibres have impacted production costs, putting pressure on margins.
Government Policies: The Indian governments policies on labour, trade, and taxation have also influenced the operational environment. Initiatives like the Production-Linked Incentive (PLI) scheme are expected to boost the textile sector, though the full benefits are yet to be realized.
The Indian apparel market, while holding strong potential, has also been impacted by these global trends. It is anticipated to grow annually by 3.81% for next two years. The Company, engaged in the business of apparels, has navigated through a challenging fiscal year marked by competitive pressures, supply chain disruptions, and the broader economic slowdown. In light of the projected 6.7% volume growth in 2025, the Company remains dedicated to fortifying its market position. We are committed to optimizing our operations and aligning our strategies with emerging industry trends to capitalize on market opportunities and achieve sustained growth.
The global economy is predicted to maintain a steady expansion path, with anticipated growth rates of 2.8% for 2025 and 3.0% for 2026. However, recent extensive United States tariffs have driven global rates to historic highs, creating significant uncertainty and risking a near-term slowdown in global growth.
United States growth is forecast at 1.8% in 2025 and 1.7% in 2026, influenced by expected labour market changes and potential lower consumer spending. The Eurozone predicts a recovery,with growth reaching 0.8% in 2025 and improving to 1.2% in 2026, linked to increased consumer spending and reduced inflation.
While global price increases are generally slowing, some regions face stagnant conditions. Global inflation is projected to decline to 4.3% in 2025 and 3.6% in 2026. Developed economies should hit inflation targets sooner. Monetary policies will vary regionally, reflecting diverse economic situations.
COMPANYS OPERATIONAL PERFORMANCE:
Despite the challenging conditions, the Company has taken several steps to streamline its operations and mitigate losses:
Product Portfolio: The Company has focused on diversifying its product portfolio to include a mix of traditional wear, casual wear, and sustainable clothing lines. Efforts are being made to innovate in design and fabric to cater to evolving consumer demands.
Supply Chain Management: In response to supply chain disruptions, the Company has worked towards strengthening relationships with suppliers and optimizing its inventory management. However, challenges persist in ensuring timely procurement of raw materials at favorable prices.
Cost Management: The Company has undertaken rigorous cost management initiatives, including reducing overheads, optimizing workforce deployment, and renegotiating vendor contracts. These measures have been crucial in limiting the impact of reduced sales on the bottom line.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:
(Rs.in lakhs) | |
Particulars |
Standalone 2025 |
Revenue from Operations |
1,724.57 |
Other Income |
- |
Total Income |
1,724.57 |
Total Expenses |
1,618.82 |
Profit/(Loss) Before Tax |
101.28 |
Profit/(Loss) After Tax |
113.99 |
The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2024-2025, appearing separately.
KEY FINANCIAL RATIOS:
Ratios |
March 31, 2025 | March 31, 2024 |
% Variance | Reasons (for variance more than 25%) |
|
Current Ratio |
24.45 | 1.40 |
1650% | Due to high decreased in current liabilities as |
|
compared to increase in current assets |
|||||
Debt Equity Ratio |
0.00 | 1.21 | -100% |
Due to high decreased in Debts and high increase in Equity |
|
Debt service coverage Ratio |
0.27 | 0.81 | -66% |
Due to increase in operating income and decrease in debts. |
|
Return on Equity Ratio |
0.08 | 0.11 | -29% |
Due to increase in higher profit and total equity. |
|
Inventory Turnover Ratio |
4.70 | 4.24 | 11% |
NA |
|
T rade receivables turnover ratio |
2.48 | 1.94 | 28% |
Due to increase in sales and as compared to increase in trade receivables. |
|
Trade Payables Turnover Ratio |
6.98 | 3.10 | 125% |
Due to increase in COGS and decreased in average trade payables. |
|
Net Capital Turnover Ratio |
1.20 | 3.65 | -67% |
Due to increase in Net Sales and higher increased in Net Capital during the year. |
|
Net Profit Ratio |
0.07 | 0.03 | 117% |
Due to increase in profit and Sales |
|
Return on Capital Employed (ROCE) |
0.07 | 0.12 | 39% |
Due to increase in profit and higher increased capital employed. |
RISK MANAGEMENT:
The Company has a robust risk management framework in place to identify, assess, and mitigate key risks. Regular reviews are conducted to ensure alignment with the changing business environment. The focus is on financial prudence, operational efficiency, and strategic agility.
HUMAN RESOURCES:
The Company believes that its employees are its greatest assets. Initiatives have been undertaken to enhance employee engagement, training, and development. However, the need for cost management has also led to a rationalization of the workforce, with efforts made to minimize the impact on morale and productivity.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:
The Company has implemented adequate internal control systems commensurate with the size and nature of its business. These systems are designed to ensure operational efficiency, compliance with laws and regulations, and the safeguarding of assets. Regular audits are conducted to assess the effectiveness of these controls, and necessary improvements are made as required.
COMPETITION:
The apparel and textile industry continues to be highly competitive, driven by rapid changes in fashion trends, consumer preferences, and pricing pressures. The Company operates in a dynamic market landscape, facing competition from both domestic manufacturers and international brands. Key competitive factors include product quality, design innovation, cost efficiency, speed to market, and brand recognition. In recent years, the entry of global players and the growth of e-commerce have intensified competition, requiring continuous investment in product development, supply chain optimization, and customer engagement. Despite these challenges, the Company remains well- positioned through its diversified product portfolio, strong distribution network, and focus on sustainable and value-added offerings that cater to evolving market demands.
PROSPECT & OUTLOOK:
The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.
NEW PATHS & NEWER ASPIRATION:
As we reflect on the successes and learnings of the past year, it is with great enthusiasm that we share our vision for the future-one rooted in diversification, innovation, and adaptability. While our legacy in the textile and apparel industry remains the bedrock of our operations, we recognize that sustainable growth requires bold thinking and forward movement.
The evolving economic landscape, driven by rapid technological advancement, shifting consumer behaviors, and increased emphasis on sustainability, calls for businesses to not only adapt-but to lead. In response, we are charting new paths with newer aspirations that align with the future of industry and society.
With this vision in mind, we have broadened our horizons through the inclusion of new business objects that reflect our intent to enter high-potential sectors:
Consumer Electronics & Appliances:
We aim to tap into the growing demand for smart, efficient, and modern electrical and electronic products. Our focus will be on quality, utility, and accessibility, serving both domestic and global markets.
Electric Vehicles (EVs) & Infrastructure:
In line with global transitions to clean energy and sustainable transportation, we plan to explore the electric vehicle ecosystem-manufacturing EVs, components, and setting up support infrastructure like charging stations and service centers.
Expanded Textile & Apparel Value Chain :
We continue to deepen our core competencies in textiles by integrating advanced processes, broader product categories, and fashion-forward innovations that cater to a global audience.
Digital, E-commerce & Omnichannel Ventures:
With retail and consumer behavior increasingly shifting to digital platforms, we are gearing up to embrace online, quick commerce, and omnichannel strategies-making our products more accessible, responsive, and customer-centric.
These new areas are not a departure from who we are-but a natural extension of our values: quality, trust, and customer satisfaction. Our intent is to build a diversified, agile, and future-ready organization that creates long-term value for all stakeholders.
We believe these steps will not only strengthen our competitive edge but also contribute to national priorities such as Make in India, green energy adoption, and digital transformation.
We invite you-our valued shareholders, partners, and employees-to join us on this exciting journey. With your continued trust and support, we are confident in our ability to seize new opportunities, overcome challenges, and shape a brighter, more dynamic future.
Together, lets walk these new paths with newer aspirations.
CAUTIONARY STATEMENT:
Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations/predictions, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements.
By order of the Board of Directors |
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For New Light Industries Limited |
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(Formerly known as New Light Apparels Limited) |
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Sd/- |
Sd/- |
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Date: 04th September, 2025 |
Suraj Parkash Goel |
Himanshi Sharma |
Place: New Delhi |
Director |
Managing Director |
DIN:10700506 |
DIN: 11129724 |
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