Financial Health
Profitability, efficiency, liquidity and leverage · FY 2024-25
Revenue
₹32.00 Cr
+8.2% YoY
Gross Margin
28.4%
-3.1 pp YoY
EBITDA
₹4.12 Cr
+2.1% YoY
Net Profit
₹1.34 Cr
-0.4% YoY
Revenue & Expenses trend (₹ L)
Product-level margins
| Product | Revenue (₹L) | Margin | YoY |
|---|---|---|---|
| Cotton Fabric | ₹1450 | 32.1% | -4.2 pp |
| Polyester Blend | ₹890 | 24.8% | -6.1 pp |
| Dyed Yarn | ₹620 | 26.4% | -0.8 pp |
| Finished Garments | ₹240 | 38.2% | +2.4 pp |
Key ratios — YoY
| Ratio | Current | Prior Year | Change | Status |
|---|---|---|---|---|
| Gross Margin | 28.4% | 31.5% | -3.1 pp | declining |
| EBITDA Margin | 12.9% | 13.6% | -0.7 pp | declining |
| Net Margin | 4.2% | 5.8% | -1.6 pp | declining |
| Return on Capital | 14.8% | 18.2% | -3.4 pp | declining |
| Current Ratio | 1.28 | 1.42 | -0.14 | watch |
| Debt / Equity | 0.82 | 0.71 | +0.11 | watch |
| Interest Coverage | 4.1x | 5.6x | -1.5x | declining |
| Inventory Days | 94 | 78 | +16 | declining |
InsightGross margin compression concentrated in two products
Observation — Gross margin fell 3.1 pp YoY (31.5% → 28.4%).
Evidence — Product margins show Polyester Blend (−6.1 pp) and Cotton Fabric (−4.2 pp) account for the entire decline.
Diagnosis — Polyester granule purchase price rose 14% while selling prices rose 6%.
Implication — At current trajectory, EBITDA would decline ~₹60 L by year-end despite higher revenue.
Action — Renegotiate supplier pricing (Rajesh Suppliers), review discount approvals, evaluate alternate polyester source.