FINANCIAL ANALYSIS REPORT SGL Global Limited

1. Preface 

SGL Global Limited, formerly known as Shivalik Global Limited, was incorporated on 22 July 1997 as a public limited company in Haryana, with its manufacturing installations at Plot No. 207- 208, Sector 58, Faridabad. 

 The company was renamed STL Global Limited on 15 October 2007 following its growth line and diversification; it's binary- listed on BSE( 532730) and NSE( SGL) with an equity IPO completed in April 2006. 

India's cloth processing sector — encompassing dyeing, knitting, weaving, and garment manufacturing is a major employer and import contributor, but faces patient periphery pressure from input cost volatility, global competition, and restrainedpost-COVID import demand recovery. 

 Reused fabric and knits manufacturers in the small andmid-cap space face fresh headwinds from imported fabric competition and pricing pressure from large integrated manufactories.

2. Company Overview 

 Firstly established to manufacture textile fabrics and import vesture; commenced operations at Faridabad factory acquired from SPL diligence Ltd. 

 In 2001- 02, started the marketable product of Sewing vestments; by 2006, acquired Shyam Tex International Ltd( 60) which was latterly composite into STL Global in 2006- 07. 

 Business model Vertically integrated cloth processing — raw yarn and fabric converted into finished treated fabrics and ready- made garments through six in- house divisions; exports to the USA, EU, Canada, and other requests. 

 Six integrated divisions Knitting( 1,150 MT sire), Dyeing and Processing of Knitted Fabric( 4,000 MT sire), Yarn Dyeing( 1,400 MT sire), Woven Processing( 360 lakh metres sire), Sewing Thread( 400 MT sire), and Readymade Garments( 2.5 lakh pieces p.m.). 

3. Protagonist/ Author preface

Mr. Vinod Kumar Aggarwal — Chairman and Lead protagonist 

Serves as Chairman and crucial decision- maker; guided the company through its founding, capacity expansions( FY2001 – FY2004), IPO in 2006, the Shyam Tex accession and admixture, and the strategic name change and rebranding in 2007- 08. Oversaw all six divisional capacity expansions at Faridabad, all financed from internal supplements, equity participation, and bank loans reflecting prudent capital operation over 25 times. 

Other Promoters and Board Members 

Co-promoters Sanjiv Kumar Aggarwal, Armaan Aggarwal — family- grounded protagonist group holding 65.76 combined equity; protagonist holding stable at Sep 2025. 

 Independent Directors Mukesh, Sanjeev Kumar, and Payal Garg — furnishing governance oversight and inspection commission functions.

4. Financial Statement Analysis 

All numbers standalone, Rs. Crore. Source BSE India( 532730) 

4.1 Income Statement Analysis

profit grew modestly from roughly Rs. 106 Cr in FY23 to Rs. 118 Cr in FY24, also slipped to roughly Rs. 114 Cr in FY25 — reflecting tepid demand conditions in the domestic fabric processing request. 

The company slipped to a borderline net loss of Rs. 0.09 Cr in FY25 after posting thin gains in FY23 and FY24, driven by compressed OPM( 2.8) and low interest content — specific to a capital- ferocious processor with high fixed costs.

4.2 Balance Sheet Analysis

 Net worth has remained largely flat at roughly Rs. 22 Cr across all three times as thin gains slightly neutralize inflationary pressure on reserves; book value of roughly Rs. 10/ share. 

 Borrowings declined modestly from roughly Rs. 38 Cr to roughly Rs. 33 Cr — a positive deleveraging signal, though debt- to- equity of roughly 1.5 x remains elevated for a low- periphery processor. 

4.3 Cash Flow Statement Analysis

Operating cash overflows are hardly positive — backed by deprecation add- back on geriatric factory however thin absolute gains limit meaningful cash generation from operations. 

 harmonious backing exoduses reflect gradational loan disbursements; no major new capital caregiving has been needed, indicating tone- funded debt servicing capability. 

4.4 Key Financial Ratios

Net perimeters are near zero or negative — at sub- 0.5 across FY23 – FY25 — with the FY25 loss attesting that the current cost structure is unsustainable without profit growth. 

 Debt- to- equity of roughly 1.50 x with low interest content is a crucial concern; any rise in borrowing costs or demand dip could push the company into deeper losses. 

5. crucial perceptivity and Interpretation 

Strengths 

 End- to- end cloth processing capability from yarn dyeing to garment exports — provides functional flexibility andcross-selling openings across fabric types and client parts. 

65.76 protagonist holding with no reported pledging eliminates forced- trade threat and reflects long- term power conviction. 

 Collaboration with RPS structure for IT Park development on company land at Faridabad provides idle asset value not reflected in current book value. 

Sins 

OPM of 2.8 and a borderline loss in FY25 leave no room for error; the business is n't generating meaningful returns on its capital base at current profit situations. 

 Debt- to- equity of roughly 1.50 x combined with low interest content is a structural vulnerability in any adverse request terrain. 

 Five- time profit CAGR of just 3.60 — below affectation — indicates the company has not been suitable to grow its profit base meaningfully, limiting any path to profitability enhancement. 

Threat Factors 

 Interest Coverage Risk Low content rate means indeed a modest increase in interest rates or working capital borrowing could push periodic losses wider. 

 Demand wimpiness threat Continued weakness in domestic fabric demand and import order wimpiness from the USA and EU — crucial import requests could sustain profit recession. 

6. Conclusion 

 STL Global Limited is a financially stressed but operationally active integrated cloth processor. profit has stagnated near Rs. 106 – 118 Cr for three times, perimeters are near zero, and the company posted a borderline loss in FY25. The balance distance is solvent — net worth positive at roughly Rs. 22 Cr, debt declining but the combination of elevated influence, low interest content, andsub-3 OPM makes the current fiscal position fragile. 

 threat Near- loss operations, 5- time profit CAGR of 3.60, low content rate, and thin volumes make this high- threat; not suitable for conservative or income investors.

7. Data Source 

• BSE India (bseindia.com) — Annual reports, quarterly results, corporate filings
• NSE India (nseindia.com) — Stock data, exchange disclosures
• Screener.in — P&L, balance sheet, ratios, shareholding data