Soma Textiles & Industries Ltd

Soma Textiles maintains a strong liquidity position with a current ratio of 71.59, indicating a significant excess of current assets over current liabilities. The company's cash and equivalents amount to INR 18.2 million, while its long-term debt is INR 29.1 million, resulting in a net cash position of negative INR 10.9 million after subtracting total debt. The debt-to-equity ratio of 0.02 suggests a conservative capital structure with minimal leverage [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 43.89% and a return on assets (ROA) of 42.83%, both significantly above the typical thresholds for the Textiles & Leather Goods industry. Despite a negative operating income of INR -61.64 million, the company reported a net income of INR 692.69 million, driven by a high gross profit margin of 1.7% on revenue of INR 948.75 million [doc:HA-latest]. The company's revenue is concentrated in three business verticals: Denim Fabric, Piece Dyed, and Jeans Wear. While the input data does not provide segment-specific revenue figures, the disclosed client base includes major Indian lifestyle and retail brands, indicating a strong domestic market presence. Geographically, the company operates from a single plant in Ahmedabad, India, with no disclosed international operations [doc:HA-latest]. Looking ahead, the company's revenue outlook for the current fiscal year is positive, with a projected growth rate that aligns with the industry's moderate expansion. The free cash flow of INR 669.33 million suggests the company has the capacity to reinvest in operations or return value to shareholders. However, the negative operating cash flow of INR -59.65 million indicates potential operational inefficiencies or timing mismatches in cash flows [doc:HA-latest]. The risk assessment highlights a medium liquidity risk, primarily due to the negative net cash position after accounting for long-term debt. The dilution risk is rated as low, with no significant dilution potential in the near term. The company's conservative capital structure and strong equity base mitigate credit risk, although the negative operating income raises concerns about short-term operational performance [doc:HA-latest]. Recent filings and transcripts do not indicate any material events or strategic shifts. The company's latest financial snapshot does not reference new product launches, major client acquisitions, or significant capital expenditures beyond the disclosed INR -27.52 million in capital expenditure [doc:HA-latest].