EK International Export Limited
Introduction
SK international export Limited is a Mumbai based textile and apparel firm that deals with producing and exporting fashion accessories including scarfs, beach wear and apparel. It also deals in domestic and overseas markets, especially Europe.
Industry Overview
The textile industry in the world is expected to increase by an average of 3.5 percent to reach a figure of $859 billion (2028).
India is: 2nd largest textile producer
Its contribution to GDP, industrial production and exports is 2.3, 13 and 12 percent respectively.
Good government encouragement through programmes such as PLI, MITRA and TUFS.
Purpose of the Analysis
To measure financial health, business model and risks.
To evaluate the prospects of future growth and investment outlook.
2. Company Overview
Background and History
A company based in India and listed in BSE SME.
Annual Report: FY 202425 (7 th Annual Report)
Head office: Lower Parel, Mumbai.
Business Model
Mainly B2B export based model.
Fermentation works on make-to-order manufacturing.
Revenue streams:
Export sales
Domestic sales
Service income
Key Products / Services
Scarves, shawls, sarongs
Beachwear garments
Headbands, bandanas
Green fashion (recycled fabrics).
Brands:
SEHSAA (scarves)
SandKastle (beachwear)
Fabrecycle (textiles recycling)
Market Position
Good presence in European markets (Spain, Germany, France, UK)
Competes with international rivals such as China, Bangladesh, Vietnam.
Small-cap SME player, having a niche focus on fashion accessories.
Introduction of the Promoter / Founder.
Hitesh S. Sadh (Managing Director) is the key person.
Chairs strategy and operations.
Part of the business growth and customer contact.
Professional Background
Textile industry and apparel industry experience.
Good emphasis on export markets and manufacturing.
Role in Growth & Strategy
International market expansion.
Bringing up of an in-house manufacturing facility (Virar).
Emphasize cost-saving and quality management.
Important Findings and Analysis.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 6.90 | 4.20 | 2.62 |
Gross Profit | 1.01 | -0.50 | 2.79 |
EBITDA | 0.37 | -1.31 | 2.33 |
Depreciation | 0.17 | 0.16 | 0.14 |
Interest | 0.09 | 0.03 | 0.02 |
Earnings Before Tax (EBT) | 0.11 | -1.50 | 2.17 |
Net Profit | -0.31 | -1.52 | 2.17 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 7.33 | 7.33 | 7.33 |
Reserves | -1.02 | -2.53 | -0.38 |
Equity (Total) | 6.31 | 4.80 | 6.95 |
Borrowings | 0.24 | 0.30 | 0.04 |
Other Liabilities | 1.11 | 0.65 | 0.16 |
Total Liabilities | 7.66 | 5.75 | 7.15 |
Fixed Assets | 2.12 | 1.98 | 1.14 |
Current Assets | 3.33 | 2.07 | 3.85 |
Total Assets | 7.66 | 5.75 | 7.15 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Operating Cash Flow | 1843 | 973 | 2931 |
Investing Cash Flow | 433 | 915 | -1507 |
Financing Cash Flow | -2254 | -2244 | -1034 |
Net Cash Flow | 22 | -356 | 390 |
Ratios Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | -4.49% | -36.19% | 82.82% |
Gross Profit Margin % | 14.64% | -11.90% | 106.49% |
Current Ratio | 3.00 | 3.18 | 24.06 |
Debt to Equity | 0.04 | 0.06 | 0.01 |
Asset Turnover | 0.90 | 0.73 | 0.37 |
✅ Strengths
Good presence in exports in Europe.
Fashion product portfolio diversification (fashion + sustainable textiles)
Warehouse production → quality and cost management.
Increased attention to green products (Fabrecycle).
Positive turnaround:
Profit after tax: 216.55 lakhs (FY25) loss previous year.
❌ Weaknesses
High reliance on export markets.
Necessary drastic reduction in revenue (~37%).
Limited scale (SME company)
Minor contribution of service segments.
⚠️ Risk Factors
International market changes (in particular Europe)
The threat of high competition with China, Bangladesh, Vietnam.
Volatility of price of raw materials.
Export-based business (currency risk).
Discretionary spending is on the decline.
📈 Future Outlook
Concentrate on growth in the domestic market.
Penetration of new product markets.
Growing interest in sustainable textiles.
Government assistance (PLI, textile parks)
The overall growth of the industry is also positive in the long-run.
Conclusion
Finally, the financial health will be evaluated.
Mixed performance:
❌ The turnover decreased considerably.
✅ Cost control (profitability improved).
Consistent government and bureaucracy.
None of them have significant legal or regulatory concerns.
Investment / Performance Perspective: In regard to investment / performance perspective, the company has invested in adequate management knowledge and technology to support efficiency and effectiveness in its business operation.
Short-term:
Worrisome because of the deceleration of demand and export.
Long-term:
Potential turnaround if:
Domestic growth is successful.
Export demand recovers
Sustainable segment grows