Tata Textile Mills Ltd
Tata Textile Mills Ltd operates with a debt-to-equity ratio of 1.09, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.23, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow stands at PKR 954.71 million, while operating cash flow is negative at PKR 8.75 billion, highlighting a mismatch between operational performance and cash generation [doc:HA-latest]. Profitability metrics show a return on equity of 4.7% and a return on assets of 1.92%, both below the typical thresholds for industry leaders. The company's operating income is negative at PKR 2.76 billion, indicating operational losses despite a gross profit of PKR 2.29 billion. This suggests high operating expenses or cost inefficiencies are eroding profitability [doc:HA-latest]. The company's revenue is derived from the production and sale of various yarn types, with manufacturing facilities located in Khanpur, Baggasher, Muzaffargarh, Kotri, and Landhi Industrial Area. While the input data does not specify geographic revenue concentration, the company serves both domestic and international markets, indicating a diversified but not quantified geographic exposure [doc:HA-latest]. Growth trajectory is constrained by the current financial performance, with no specific outlook provided for the current or next fiscal year. The company's capital expenditure of PKR 1.04 billion indicates ongoing investment in operations, but the negative operating cash flow suggests that these investments are not yet generating sufficient returns to cover operational costs [doc:HA-latest]. Risk factors include a medium liquidity risk, as the company has negative net cash after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. However, the negative operating cash flow and high debt levels could pose challenges in maintaining financial stability [doc:HA-latest]. Recent events and filings have not been provided in the input data, so no specific recent developments can be cited. The company's financial health is closely tied to its ability to improve operational efficiency and manage debt effectively [doc:HA-latest].
Business. Tata Textile Mills Ltd is a Pakistan-based company engaged in the manufacture and sale of yarn, including cotton carded and combed knitting & weaving yarns, cotton combed compact weaving siro yarns, and cotton/polyester blend carded & comb yarn for knitting and weaving [doc:HA-latest].
Classification. Tata Textile Mills Ltd is classified under the Textiles & Leather Goods industry within the Consumer Cyclicals economic sector, with a classification confidence of 0.92 [doc:verified market data].
- Tata Textile Mills Ltd has a debt-to-equity ratio of 1.09, indicating a moderate reliance on debt financing.
- The company's return on equity is 4.7%, and return on assets is 1.92%, both below industry-leading benchmarks.
- Operating income is negative at PKR 2.76 billion, despite a gross profit of PKR 2.29 billion, indicating high operating expenses.
- The company's liquidity position is medium, with a current ratio of 1.23 and negative net cash after subtracting total debt.
- Capital expenditure of PKR 1.04 billion suggests ongoing investment, but negative operating cash flow indicates insufficient returns to cover costs.
- The company serves both domestic and international markets, with manufacturing facilities in multiple locations in Pakistan.
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- Net cash is negative after subtracting total debt.