Analysing the Financial Performance of AKI INDIA LIMITED
1. Introduction
This company was Formed in 1994, AKI India Limited operates in Kanpur. Leather forms the core of its work, items like shoes, handbags & belts. Horses wear some of what they make tack on their production line too. Pet collars join the range alongside finished hides ready for others to craft. Exports move in foreign markets while local buyers also depend on their supply. Demand has held firm across home and foreign customers.
Industry Overview
Footwear, accessories, and leather goods from India reach markets across different countries.The experienced workers, solid supplies of hides, production hubs in places such as Kanpur, Chennai, and Kolkata. Prices for raw inputs often change creating pressure on operation. Manmade materials offer cheaper options, promoting traditional makers to adapt slowly.
Purpose of the Analysis
AKI India Limited begins by scanning how it runs day to day. Leadership style shapes what happens inside the company. One strength stands out when compared to others nearby. Still some weak spots slow progress. Growth could pick up if certain paths open wide.
2. Company Overview
Background and History
AKI India Limited made saddles at first, then slowly added more products. By 2017 it turned into a public limited firm, shares now trade on both BSE and NSE. Owning came later, letting them craft finished leather themselves instead of depending on outside suppliers.
Business Model
From small workshops comes crafted leather purses, belts, cases that move into city stores and countries. Quality drives each piece.Design shapes what they make. Growth heavily on reaching buyers beyond national borders.
Key Products/Services
From leather come belts,Purses follow close behind,bags.
Footwear, formal, casual & riding boots.
Equestrian equipment, saddles.
Clothes for animals start with a strap around the neck. Walking gear follows close behind, tied right to it
Finished leather for industrial and commercial use.
Market Position
AKI India Limited holds a distinct spot within the nation's leather export. Not away from markets, it specializes in gears for horse riding. Built around its base in Kanpur, the company runs production internally. Instead of outsourcing, everything is done under one roof. This way, consistency makes each output.
3. Promoter or Founder Intro
Name of Promoters/Founders
Asad Kamal Iraqi & Anwar Kamal Iraqi are the founder of the company
Asad Kamal Iraqi
Professional Background
Years shaping leather goods, one founder brings focus for global markets. A second voice chimes in, grounded in numbers and balance sheets. Together, their path winds through trade routes, finance desks each step built on real work.
Role in company growth and strategic decisions
Backward integration boosts production strength, while new product ranges open paths forward. Global shipping take shape along with smarter planning moves.
4. Financial Statement Analysis
1. Income Statement Analysis
Year | Revenue (₹ Crore) | Profit Before Tax (₹ Crore) | Net Profit (₹ Crore) | Growth Observation |
FY2023 | ~70.00 | ~1.80 | ~1.15 | Base year performance |
FY2024 | 70.91 | 1.88 | 1.37 | Slight increase in sales and profit |
FY2025 | 80.96 | 2.67 | 1.68 | Strong growth in revenue and profitability |
Key Points
Indicator | Observation |
Revenue Trend | Revenue increased |
Profit Growth | Net profit increased |
Overall Performance | Indicates improving operational performance |
2. Balance Sheet Analysis
Year | Total Assets (₹ Crore) | Total Liabilities (₹ Crore) | Shareholders Equity / Net Worth (₹ Crore) |
FY2023 | 44.44 | 29.51 | 14.93 |
FY2024 | 77.64 | 18.07 | 59.57 |
FY2025 | 84.06 | 19.17 | 64.89 |
Balance Sheet Interpretation
Factor | Analysis |
Asset Growth | Assets increased |
Debt Level | Borrowings decreased |
Equity | Net worth increased |
3. Cash Flow Statement Analysis
Year | Operating Cash Flow | Investing Cash Flow | Financing Cash Flow | Interpretation |
FY2023 | Positive | Negative | Moderate | Investment activities ongoing |
FY2024 | Slight pressure | Negative | Balanced | Expansion and asset purchase |
FY2025 | Improving | Negative | Stable | Business reinvestment continues |
Summary
Activity | Meaning |
Operating Cash Flow | cash generated from business operations |
Investing Cash Flow | Negative |
Financing Cash Flow | Indicates borrowing or equity funding |
4. Key Financial Ratios
Ratio Type | Formula | FY2025 Approx Value | Interpretation |
Net Profit Margin | Net Profit / Revenue | ~2% | Low |
Return on Equity (ROE) | Net Profit / Equity | ~2.6% | Moderate |
Debt to Equity | Total Debt / Equity | ~0.29 | Low |
Asset Turnover | Revenue / Total Assets | ~0.96 | Efficient asset utilization |
5. Year-on-Year Financial Comparison
Financial Indicator | FY2023 | FY2024 | FY2025 | Trend |
Revenue (₹ Cr) | ~70 | 70.91 | 80.96 | Increasing |
Net Profit (₹ Cr) | ~1.15 | 1.37 | 1.68 | Increasing |
Total Assets (₹ Cr) | 44.44 | 77.64 | 84.06 | Significant growth |
Debt (₹ Cr) | 29.51 | 18.07 | 19.17 | Reduced then stable |
Equity (₹ Cr) | 14.93 | 59.57 | 64.89 | Strong improvement |
5. Key Insights And Interpretation
Strengths
Diverse product portfolio.
Export oriented operations.
In house ensures quality control.
Weaknesses
Small market capitalization.
Heavy dependence on export markets.
Limited brand recognition.
Risk Factors
Raw material prices keep on changing .
Currency and trade risks affecting exports.
Facing pressure as man made options rise alongside different substitutes.
Future Outlook
Fueled by rising worldwide interest in leather goods, new paths open up. With sustainability efforts shaping progress, companies might strengthen their position. When done right, results follow.
6. Conclusion
Final evaluation of financial health
A known name in leather, AKI India Limited runs steady day after day. Products spread across several types, thanks to tightly linked production units working together behind the scenes. Exports keep things moving, forming the backbone of its presence abroad. Still, home recognition lags far behind actual output. Size holds it back - not quality, just reach.
Investment and Performance
A steady climb seems possible for the business. Should export channels grow, returns over time might appeal to investors, especially with sharper brand identity paired with smoother operations. Holding a specific spot in leather shipping opens doors to consistent results abroad.
7.DATA SOURCES
https://www.screener.in/company/AKI/consolidated/