Analysing the Financial Performance of Aritas Vinyl Ltd
1. Introduction
Brief Introduction of the Company
A small factory in India makes fake leather along with plastic coated sheet.Car get covered inside using these fabric,just like sofa often do.Shoes sometime wear them, especially when rain resistance matters more than expected.Belts, bag,even some jacket rely on this stuff because it lasts longer than cloth under certain conditions.
Industry Overview
Price stayed low while quality held up making fake leather.Each needing seats and trim that didn’t rely on animal skins. Furniture makers started swapping out material quietly, shifting without much notice. Even handbags and shoes began showing up with smoother finishes made entirely in labs.The market just kept expanding.
Purpose of the Analysis
Aritas Vinyl Ltd is doing financially using its balance sheets, profit trends, because numbers tell its financials. Company health comes through when examining cash flow patterns alongside growth signs.Performance hides between figures,especially when viewed with ratio change. Business outlook becomes clearer once financial habits are matched with market trends.
2. Company Overview
Background and History
Aritas Vinyl Ltd modern coating methods shape how they craft synthetic leather here. In Ahmedabad Gujarat production moves steadily forward. Technology drives each part yet hands still guide key steps along the way.
Business Model
Fabricated by the firm, synthetic leather moves into hands of maker and seller into various sectors. Sales increase income, especially from within the country as well as foreign destinations.
Key Products and Service
PVC Vinyl.
PU Synthetic Leather.
Artificial leather fabrics used in upholstery and footwear.
Market Position
Aritas Vinyl Ltd works within a rising industry focused on specialized fabrics, while slowly building its role in materials that leather. Though the company pushed forward into new areas where artificial hides are in demand.It finds footing among competitors making alternatives to real skin. Growth comes in just steady movement shaped by modern needs.
3. Promoter / Founder Introduction
Anilkumar Agrawal
Name of Promoter / Founder | Professional Background | Role in Company Growth and Strategic Decisions |
Anilkumar Agrawal | Managing Director and CEO of Aritas Vinyl Ltd. since January 2025, with experience in the manufacturing industry. | Lead the company operation, business strategy, and expansion. He played an important role in improving production capacity and strengthening the company's position in the synthetic leather market. |
4. Financial Statement Analysis
1. Income Statement Analysis
From FY 2023 to FY 2024, earnings climbed starting at ₹51.17 crore then reaching ₹68.70 crore.By the next year,that number stretched further, hitting ₹97.53 crore. Profit followed a similar path, beginning at ₹0.99 crore before jumping to ₹4.13 crore.
2. Balance Sheet Analysis
A surge in production pushed asset values up, while growing demands on day to day funding played a part too. Even though loans remain in play, better earnings quietly bolstered stability across finances.
3. Cash Flow Statement
Operation brought in more money than they spent.Cash from daily work covered cost and left extra. Instead of holding all, the fund went toward buying new equipment. Loan payment also took a portion of what came in. The business stayed active with spending while keeping income steady.
4. Key Financial Ratio
Return on Equity: About 31%,strong return generated on shareholder investment.
Return on Capital Employed: Around 21%,efficient use of the company capital.
Debt-to-Equity Ratio: Approximately 1.80,moderate reliance on borrowed fund.
Current Ratio: Around 1.30,the company has adequate short-term liquidity.
Net Profit Margin: About 4%,the portion of profit earned from total revenue.
5. Year-on-Year Comparison
Year | Revenue | Net Profit |
FY 2023 | 51.17 | 0.99 |
FY 2024 | 68.70 | 1.67 |
FY 2025 | 97.53 | 4.13 |
5. Key Insights And Interpretation
Strengths
Growing demand for synthetic leather products.
Increasing revenue and profit.
Diversified application across industries.
Weaknesses
High depending on borrowed funds.
Small footprint in the marketplace.
Risk Factor
Fluctuation in raw material price.
Competition from established manufacturers.
Future Outlook
One reason the business might grow is that more people want fake leather these day.factorie should make more,things could move faster. Smarter money handling would help too,maybe even open a new path.
6. Conclusion
Final evaluation of financial health
Aritas Vinyl Ltd saw steady gain in income while profit climbed too. Growth continues as business activities stretch further, helped by sharper money result.More earnings have come through, just as costs get tighter.Operation now cover broader ground because outcomes keep getting better.
Investment or performance perspective
Growth shows up clearly across operations in synthetic leather.Anyone looking at funding needs to weigh money related danger along with how crowded the marketplace has become first.
7.Data Sources
https://www.screener.in/company/544683/