Suryalata Spinning Mills Ltd

Suryalata Spinning Mills Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.4, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.08, suggesting it has just enough current assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for Suryalata Spinning Mills Ltd show a return on equity (ROE) of 2.19% and a return on assets (ROA) of 1.37%. These figures are below the industry median for textile companies, indicating that the company is underperforming in terms of capital efficiency and asset utilization. The operating margin, calculated as operating income of INR 90.4 million on revenue of INR 1.2 billion, is 7.5%, which is also below the industry average.

The company's revenue is primarily concentrated in its domestic market, with no significant geographic diversification disclosed. The lack of international exposure may limit growth opportunities and increase vulnerability to local economic conditions. No specific segment breakdown is available, but the company operates as a single business unit focused on textile manufacturing.

Looking ahead, the company's growth trajectory is expected to remain modest. The current fiscal year (FY) outlook indicates a revenue growth rate of 3.2%, with a projected increase of 4.1% in the following FY. These figures are in line with the industry's average growth expectations, but the company's capital expenditure of INR 772.3 million suggests a significant investment in infrastructure, which may impact short-term profitability.

Risk factors for Suryalata Spinning Mills Ltd include liquidity constraints and the potential for dilution, although the latter is currently assessed as low. The company's negative net cash position and high capital expenditure may necessitate additional financing, which could lead to increased debt or equity dilution. No recent dilutive events have been reported, and the company's dilution potential remains minimal for now.

Recent events and filings do not indicate any major operational or financial disruptions. The company's latest financial report, filed in accordance with Indian accounting standards, shows stable operations and no material changes in business strategy. No significant earnings call transcripts or regulatory filings have been disclosed that would suggest a shift in the company's direction or performance.

Operating margin of 7.5% significantly exceeds the 4.7% median for the Textiles & Leather Goods cohort.

Net margin of 4.5% outperforms the 3.0% cohort median, indicating superior profitability relative to peers.

Cash conversion score of 7.46 is best-in-class, vastly surpassing the 0.98 cohort median.

Debt-to-equity ratio of 0.4 is lower than the 0.43 cohort median, suggesting a conservative leverage profile.

Free cash flow turned positive to INR 299 million in the latest period, reversing prior negative trends.

Net income CAGR of -24.7% over four years signals a severe and sustained decline in profitability.

High credit risk flag suggests significant potential for financial distress or default issues for the company.

Revenue growth CAGR of just 0.7% over four years indicates stagnant top-line expansion capabilities.

Revenue INR 4.53B, −6,3% YoY; Operating income −39,5% YoY.

• ▍Revenue INR 4.53B, −6,3% YoY
• ▍Operating income −39,5% YoY
• ▍Net income −45,7% YoY
• ▍Free cash flow −133,4% YoY
• ▍Net margin 4.1%

Revenue INR 4.84B, +0,8% YoY; Operating income −27,9% YoY.

• ▍Revenue INR 4.84B, +0,8% YoY
• ▍Operating income −27,9% YoY
• ▍Net income −28,1% YoY
• ▍Free cash flow −154,1% YoY
• ▍Net margin 7.1%

Revenue INR 4.80B, +73,7% YoY; Operating income +83,2% YoY.

• ▍Revenue INR 4.80B, +73,7% YoY
• ▍Operating income +83,2% YoY
• ▍Net income +154,4% YoY
• ▍Free cash flow +36,1% YoY
• ▍Net margin 9.9%