FINANCIAL ANALYSIS OF SVP Global Fabrics Limited

1. preface

Company preface

SVP Global fabrics Limited (formerly SVP Global Ventures Limited) is a Mumbai- headquartered, It manufactures Compact Cotton Yarn, Open End Yarn, and Polyester- Cotton Blended Yarn across manufacturing units in Rajasthan( Jhalawar quarter) and Tamil Nadu( Coimbatore, Palani, Madurai).

• India's cloth sector contributes roughly 2.3 to GDP and roughly 12 to total wares exports, making it one of the country's largest manufacturing industries.

• The cotton yarn member faces cyclical pressure from unpredictable raw cotton prices, restrained domestic demand, and enhancing competition from Chinese and Bangladeshi directors.

This report evaluates SVP Global fabrics Limited's fiscal performance over FY 2022- 23, FY 2023- 24, and FY 2024- 25, using checked fiscal statements and intimately available data. The ideal is to give a balanced, substantiation- grounded view of the company's fiscal health, pitfalls, and unborn outlook.

2. Company Overview

Background and History

Firstly a diversified trading and cloth establishment; latterly rotated to yarn manufacturing with large- scale capacity erected in Rajasthan and Tamil Nadu.

Rajasthan unit State- of- the- art installation at RIICO Industrial Area, Dhanodi, Jhalawar, with 150,000 spindles for compact cotton yarn and 2,400 rotors for open- end yarn, spread over roughly 60 acres.

Product isolation Machinery sourced from encyclopedically reputed suppliers — Rieter( Switzerland), Electro- spurt( Spain), LMW( India), and Schlafhorst( Germany) — to manufacture ultraexpensive compact and open- end yarns.

Domestic and import deals Products retailed under the DG TEX, SVP, and SVRP brands across India and transnational requests.

Key Products

• Compact Cotton Yarn( count range 20s to 60s) — flagship product from the Rajasthan unit.

• Open End( OE) Yarn — manufactured using 2,400 rotors at the Rajasthan installation.

• Polyester- Cotton and Blended Yarn( count 20s to 60s) — produced at Tamil Nadu units.

• Trading in gold, diamonds, rocks

, and fabrics lower secondary line.

3. protagonist/ Author preface

Mr. Chirag Pittie — Lead protagonist and crucial Strategist

• Holds a BSBA degree in Finance and Management from Boston University, USA, furnishing a strong academic grounding in fiscal and strategic decision- timber.

• Has been the primary driving force behind the company's metamorphosis from a diversified trading empire into a large- scale integrated cloth manufacturer.

• Gopal Lohia — Chairman of the Board; responsible for overall governance and strategic direction.

• Praveen Shelley, Prakash Lavji Vaghela, Prima Denish Parmar, Naval Tara Mishra — listed co-promoters contributing to power stability.

• Urmi Chhapariya — Company Secretary and Compliance Officer, responsible for nonsupervisory forms and BSE/ NSE exposures.

4. Financial Statement Analysis

All numbers below are consolidated and in Rs. Crore unless stated otherwise. Data sourced from BSE India forms and Screener.in for FY 2022- 23( FY23), FY 2023- 24( FY24), and FY 2024- 25( FY25).

4.1 Income Statement Analysis

Particulars	FY 2022-23 (Rs. Cr)	FY 2023-24 (Rs. Cr)	FY 2024-25 (Rs. Cr)
Revenue from Operations	917	302	92
Total Expenses	904	316	675
Operating Profit (EBITDA)	12	-14	-583
OPM (%)	1.3%	-4.6%	-633%
Interest / Finance Costs	~177	~202	~2
Depreciation	~109	~112	~106
Net Profit / Loss (PAT)	-184	-433	-980
YoY Revenue Change (%)	-- Base --	-67.1%	-69.5%

crucial compliances

• profit collapsed from Rs. 917 Cr in FY23 to Rs. 92 Cr in FY25 — a 90% decline in two times — reflecting large- scale product shutdowns and incapability to service operations.

• Net losses strengthened from Rs. 184 Cr in FY23 to Rs. 980 Cr in FY25, driven by asset impairments, accrued interest vittles, and near- zero operating profit.

4.2 Balance Sheet Analysis

Particulars	FY 2022-23 (Rs. Cr)	FY 2023-24 (Rs. Cr)	FY 2024-25 (Rs. Cr)
Total Assets	3,500	2,900	1,700
Total Borrowings	3,200	2,900	2,300
Current Liabilities	800	750	600
Total Liabilities	4,000	3,650	2,900
Shareholders' Equity / Net Worth	(500)	(750)	(1,200)
Book Value per Share (Rs.)	Negative	Negative	-96.7
Paid-up Share Capital (Rs. Cr)	12.66	12.66	12.66

• The company has a deeply negative net worth( roughly Rs. -1,200 Cr in FY25), meaning total arrears exceed total means significantly — a classic index of specialized bankruptcy.

• Book value per share of Rs. -96.7 confirms the equity has been entirely eroded by accumulated losses; shareholders have no residual claim on means.
4.3 Cash Flow Statement Analysis

Particulars	FY 2022-23 (Rs. Cr)	FY 2023-24 (Rs. Cr)	FY 2024-25 (Rs. Cr)
Cash Flow from Operations (CFO)	(100)	(150)	(50)
Cash Flow from Investing (CFI)	(10)	(5)	Nil
Cash Flow from Financing (CFF)	110	155	50

Note Cash inflow numbers are estimated from daily results and reported debt situations. Audited statements are available in BSE periodic forms.

• Operating cash overflows have been constantly negative, reflecting the incapability to induce meaningful cash from oppressively elided manufacturing operations.

• Investing exoduses have declined to near zero in FY25, as capital expenditure has been fully halted given the fiscal torture.

• Backing inrushes represent exigency borrowings or debt restructuring bills rather than organic fundraising, masking the true liquidity extremity.

Key Financial rates

Ratio	FY 2022-23	FY 2023-24	FY 2024-25
A. Profitability
OPM (%)	1.3%	-4.6%	-633%
Net Profit Margin (%)	-20.1%	-143%	N/M
B. Liquidity
Interest Coverage Ratio	Below 1x	Below 1x	Negative
C. Leverage / Valuation
Debt-to-Equity Ratio	Not Meaningful	Not Meaningful	Not Meaningful
Price-to-Book (P/B) Ratio	N/M	N/M	-0.40x

• All profitability rates are deeply negative and not similar to healthy peers, as the company is in a state of severe fiscal torture.

• Debtor days of 3,590 days indicates that outstanding trade receivables are nearly entirely irrecoverable — pointing to significant impairment of current means.

5. Crucial perceptivity and Interpretation
Strengths

• Physical structure

◦ Owns significant palpable means — a 60- acre Rajasthan factory with 150,000 spindles and 2,400 rotors, and three Tamil Nadu units — which, if revived, represent meaningful artificial capacity.

◦ Machinery sourced from global leaders( Rieter, Schlafhorst, LMW) means being outfit is of high quality and can produce ultraexpensive compact yarn if operations capsule.

sins

• Deeply Negative Net Worth

◦ Net worth of roughly Rs. -1,200 Cr in FY25 confirms specialized bankruptcy; all shareholder equity has been canceled bymulti-year losses.

◦ profit fell from Rs. 917 Cr in FY23 to Rs. 92 Cr in FY25, indicating near-total arrestment of manufacturing conditioning.

◦ Debtor days of 3,590 days signals that trade debtors are largely fictitious or irrecoverable, raising questions about fiscal reporting quality.

threat Factors

• Bankruptcy and NCLT threat Given negative net worth exceeding Rs. 1,200 Cr and total borrowings of roughly Rs. 2,300 Cr, the company faces implicit IBC( Insolvency and Bankruptcy Code) proceedings by lenders.

• Delisting threat Dragged losses, negative book value, and low request price( Rs. 2.89) raise the possibility of nonsupervisory action for delisting from BSE and NSE.

• Liquidity threat With near- zero profit( Rs. 12 Cr in Q3 FY25 declining to Rs. 0 by H1 FY26), the company has effectively exhausted functional cash generation capacity.

unborn Outlook

• Asset Resolution script The most realistic positive outgrowth is a strategic investor or lender- led resolution under IBC, which would involve acquiring the manufacturing means at a significant hairstyle to bespeak value and relaunching operations.

• Ethiopia Project query The planned cotton spinning installation in Kombolcha, Ethiopia, appears doubtful to do so in the near term given the domestic fiscal collapse.

• Recovery Prerequisite Any meaningful fiscal recovery requires complete debt restructuring, equity infusion, and functional renewal — a lengthy and uncertain process given the scale of accumulated losses( Rs. 980 Cr in FY25 alone).

• Investor Caution The stock is categorised in the' BE'( trade- for- trade) member on NSE, indicating extreme illiquidity and nonsupervisory caution; it's infelicitous for any order of retail or institutional investors.

6. Conclusion

SVP Global fabrics Limited is in a state of advanced fiscal torture. Profit has collapsed by over 90% in two times, net losses have accumulated to nearly Rs. 980 Cr in FY25 alone, and the company's net worth has turned deeply negative at roughly Rs. -1,200 Cr. The balance distance is technically insolvent, and the operating model has effectively desisted to serve at any meaningful scale. The combination of unrecoverable debtors, halted capital expenditure, and shrinking protagonist commitment paints a veritably grueling picture.

Judges and scholars should treat this case primarily as a study in commercial fiscal failure, overleveraged expansion, and the consequences of unsustainable debt accumulation in a cyclical sector.

----------------------------------------------------------------------------------------------------