Peeti Securities Ltd Management Discussions

Annexure-I

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

India is the one of the worlds largest producers of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub. It is the worlds second largest producer of textiles and garments. The Indian textiles industry accounts for about 24 per cent of the worlds spindle capacity and 8 per cent of global rotor capacity. According to a report. textile exports are expected to reach US$ 65 billion by FY26. The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26.

The textiles industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 27 per cent to the countrys foreign exchange inflows. It provides direct employment to over 45 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the Indias economy.

Indias yarn production was pegged at 341.91 lakh bales in FY 2023-24. Indias yarn exports declined in volume but increased in value during the first half of 2022. India exported 9.69 lakh ton yarn worth $3.472 during the year under review. Bangladesh remained the top buyer with 32.72% share, while Turkey stood second with import of 11.40% of all Indian exports during the period. The Indian home textile industrys revenue is expected to grow 11-12% in FY 2023-24 mainly because of higher price realizations. Domestic demand for home textiles is expected to grow by 13% fueled by sharp demand recovery in the domestic hospitality industry and continued focus on health and hygiene. Exports account for 60-70% of the Indian home textile industrys revenue. United States remains the largest market for Indian home textiles contributing for a sizeable 58% of the total exports. Global demand for home textiles is expected to be impacted in the near term by inflationary pressures with big retailers cutting down on inventory and consumers cutting down on discretionary spending. The growth in export demand is expected to moderate to 10% in 2023-24 compared to 25% in 2022-23 on the account of slower recovery in the international travel and hospitality segments globally. (Source: new indian express.com)

Indian Textile Industry can be divided into several segments, some of which can be listed as below

Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

2. OPPORTUNITIES AND THREATS: Opportunities

Replacement of the MFA and full integration of textile industry has resulted in huge opportunities for export. Increase in consumption pattern across the country along with the rising demand for high quality premium fabrics.

Large and potential domestic and international market. Promising Export Potential.

Threats

Pricing pressure due to opening up of quotas. Enhanced competition from other countries. Rising production cost from increasing wages, power and interest cost.

3. SEGMENT -WISE /PRODUCT -WISE:

The company doesnt have any other segment or products and it is mainly involved in trading of textiles and garments.

4. RISKS AND CONCERNS:

Risk is an inherent part of any business. There are various types of risks, that threat the existence of a company like Strategic Risk, Business Risk, Finance Risk, Environment Risk, Personnel Risk, Operational Risk, Reputation Risk, Regulatory Risk, Technology Risk, Political Risk, etc. Your company aims at enhanc- ing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.

5. INDUSTRY OUTLOOK:

Though the company has achieved higher amount of net profit when compared to the last financial year. The board of directors of the company feels that textile sector is fast growing in India, hence due to increasing scope and demand for exports in India, the company at the same parallel will put all the efforts to improve the quality and productive to get more order at competitive rates and try to maintain high quality and productivity in the manufactured goods. Barring unforeseen circumstances the company is confident of achieving better results in the current year.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has proper and adequate systems of internal controls in order to ensure that all assets are safeguarded against loss from unauthorized use or disposition and that all transactions are authorized re- corded and reported correctly.

The Board of Directors has been entrusted with the responsibility of reviewing the findings and to investigate and take necessary actions wherever required.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the financial year under review the difficulties which were faced in the last year is not effected much in the financial position of the company and the Company is able to achieve high turnover as compared to last financial year and due to high turnover and high expenditure the Company has recorded reasonable profits in the current financial year

The Company is hopeful that this fiscal the Company will achieve good turnover as the economy will witness upward trend and good business despite of huge competition in wholesale prices and doing trading with fewer margins to sustain in the market.

8. HUMAN RESOURCES/ INDUSTRIAL RELATIONS:

The Company firmly believes that motivated and empowered employees are the cornerstone of competitive advantage. The Companys employee value proposition is based on a strong focus on employee develop- ment, providing a satisfying work environment, performance appraisal and counseling and appropriate em- powerment.

The Company continues to maintain and enjoy a cordial relationship with its employees, providing positive environment to improve efficiency with regular investments in upgrading the knowledge and skills of the employees.

9. PERFORMANCE REVIEW:

Discussion on Financial Performance with respect to Operational Performance:

i. Total Income as on 31st March 2025 is 2355.32 Lakhs.

ii. Share Capital: The Paid-up share Capital as on 31st March, 2025 is 375.04 Lakhs. iii. Net Profit as on 31st March, 2025 is (9.14) Lakhs. iv. Earnings per Share (EPS) as on 31st March, 2025 are (0.24)

The Earning per Share for the Financial Year 2024-25 is Rs. (0.24) per share (Face Value: Rs.10/-each). Your directors are putting continuous efforts to increase the performance of the Company and are hopeful that the performance in coming year will overcome from the present situation.

10. CAUTIONARY STATEMENT:

Statements in this management discussion analysis describing the Companys objectives, projections,estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.

Financial		Standalone	Deviation
Ratios	Formula	2024-25	2023-24	(%)	Reason for Change
Debtors Turnover	[Revenue from operations/	10.40	10.51	1.05%	-
Ratio (times) Inventories Turnover Ratio (times)	Average Trade receivables] [COGS/Average Inventories]	3.51	3.95	11.14%	-
Interest Coverage Ratio (times)	[EBIT/Finance Cost]	NA	NA	NA
Current Ratio (times)	[CurrentAsset/Current Liability]	15.12	12.08	-25.19	Due to decrease in "Current Assets "in the current year
Debt Equity Ratio (times)	[Debt/Shareholders Equity]	NA	NA	NA
Net Profit Margin (%)	[Profit After Tax/Revenue from Operations]	-0.39	1.66	-123.78%
Return on Networth (%)	[Profit for the year (before exceptional items and after tax)/Net Worth]	-0.79	3.48	-122.63%	Due to decrease in "Earnings before interest and taxes " in the current year.
Operating Profit Margin Ratio (%)	[EBIT/Revenue from Operations	-0.41	2.09	-119.44%

 

		BY THE ORDER OF THE BOARD
		PEETI SECURITIES LIMITED
	Sd/-	Sd/-
	SANDEEP PEETI	RAJESH PITTY
Place: Hyderabad	Chairman & Managing Director	Wholetime Director & CFO
Date : 03.09.2025	DIN: 00751377	DIN: 00488722