FINANCIAL ANALYSIS REPORT Suryaamba Spinning Mills Limited
1. preface
Detail preface of the Company
Suryaamba Spinning Mills Limited is a Nagpur- grounded, BSE- listed manufacturer specialising in specialty synthetic spun yarns. Innovated in 1993 and formally listed on the Bombay Stock Exchange in September 2009( Scrip Code 533101), the company serves buyers across domestic and transnational requests gauging further than 24 nations. Its ISO 90012015 pukka manufacturing unit at Mouza- Nayakund, near Ramtek, Nagpur produces roughly 14,400 metric tonnes of yarn annually from 43,632 installed spindles, making it one of the leading mid-market speciality yarn directors in central India.
2. Company Overview
Background and History
Suryaamba Spinning Mills traces its roots to 1993, when a spinning unit was established at Nayakund, Ramtek under Suryalata Spinning Mills Limited. Commercial mileposts are as follows
1993 — Yarn spinning operations commenced at Nayakund, Nagpur, originally under Suryalata Spinning Mills, fastening on polyester and viscose amalgamated yarn manufacturing.
2009 — The company's equity shares were listed on the Bombay Stock Exchange on 3 September 2009 under Scrip Code 533101 in the B- Group Securities order.
2015 onwards — Installed spindle capacity was precipitously expanded to 43,632 spindles, achieving a product run- rate of 30 metric tonnes per day and an periodic capacity of 14,400 metric tonnes.
The company follows a focused single- member model centred on the manufacture and trading of specialty synthetic yarn. Core rudiments of its approach include
• Integrated end- to- end product All processes from raw fibre input through spinning, wringing, winding, and packaging are conducted at the Nayakund installation, icing full quality control.
3. protagonist/ Author preface
Virender Kumar Agarwal — Managing Director and Anchor protagonist
• Serves as the star protagonist and managing director of Suryaamba Spinning Mills, furnishing strategic leadership since the Nayakund spinning unit was established under Suryalata Spinning Mills in 1993.
• Brings further than three decades of hands- on experience in synthetic yarn manufacturing, encompassing product operation, quality governance, and client relationship development.
• Led the strategic demerger process that converted the Nayakund spinning unit into an independent intimately listed reality between 2007 and 2009, demonstrating entrepreneurial action and commercial restructuring capability.
• Drove the progressive expansion of installed spindle capacity from the original base to 43,632 spindles, enabling the company's current periodic product capability of 14,400 metric tonnes.
4. Financial Statement Analysis
All numbers in the tables below are in Indian Rupees( Rs.) Crore unless stated else. fiscal data is sourced from audited periodic fiscal statements filed with BSE India, daily results from Capital Market( Live), and intimately available data on Screener.in and Ticker Tape for FY 2022- 23, FY 2023- 24, and FY 2024- 25.
4.1 Income Statement Analysis (Revenue, Net Profit, Growth Trends)
Particulars | FY 2022-23 (Rs. Cr) | FY 2023-24 (Rs. Cr) | FY 2024-25 (Rs. Cr) |
Revenue from Operations (Net Sales) | 248.00 | 218.57 | 214.66 |
Other Income | 2.00 | 1.00 | 1.00 |
Total Income | 250.00 | 219.57 | 215.66 |
Total Expenses (incl. Raw Materials, Labour) | 228.00 | 205.00 | 202.00 |
Operating Profit (EBITDA) | 21.00 | 14.00 | 13.00 |
Operating Profit Margin (OPM %) | 8.47% | 6.40% | 6.05% |
Interest / Finance Costs | 5.93 | 5.73 | 4.51 |
Depreciation | 6.54 | 6.34 | 6.27 |
Profit Before Tax (PBT) | 8.53 | 2.41 | 2.84 |
Net Profit After Tax (PAT) | 7.91 | 1.75 | 1.17 |
PAT Margin (%) | 3.19% | 0.80% | 0.54% |
YoY Revenue Change (%) | -- Base Year -- | -11.87% | -1.79% |
YoY PAT Change (%) | -- Base Year -- | -77.88% | -33.14% |
crucial compliances from the income statement
• profit contracted from Rs. 248.00 Cr in FY23 to Rs. 214.66 Cr in FY25, a accretive decline of roughly 13.4, reflecting compressed yarn realisations and softer demand conditions in the domestic and import requests.
• Net Profit After duty fell sprucely from Rs. 7.91 Cr in FY23 to Rs. 1.75 Cr in FY24 and farther to Rs. 1.17 Cr in FY25 — an accretive three- time decline of roughly 85 — primarily due to periphery contraction from elevated raw material costs.
• Operating Profit periphery contracted from 8.47 in FY23 to 6.05 in FY25, driven by unfavourable polyester chief fibre and viscose chief fibre price movements combined with limited capability to pass through cost increases in a competitive request.
4.2 Balance Sheet Analysis (Assets, Liabilities, Equity)
Particulars | FY 2022-23 (Rs. Cr) | FY 2023-24 (Rs. Cr) | FY 2024-25 (Rs. Cr) |
A. ASSETS | |||
Gross Fixed Assets (PPE, net of depreciation) | 52.00 | 47.00 | 43.00 |
Current Assets (Inventories, Debtors, Cash) | 61.00 | 58.00 | 54.00 |
Total Assets | 113.00 | 105.00 | 97.00 |
B. LIABILITIES AND EQUITY | |||
Total Borrowings (Long-term + Short-term) | 53.00 | 48.00 | 38.00 |
Net Debt (Borrowings minus Cash) | 51.00 | 42.68 | 33.32 |
Current Liabilities (Trade Payables etc.) | 28.00 | 26.00 | 24.00 |
Shareholders' Equity / Net Worth | 60.00 | 60.00 | 63.80 |
Paid-up Share Capital | 2.93 | 2.93 | 2.93 |
Book Value per Share (Rs.) | 205 | 205 | 218 |
Crucial compliances from the balance distance
• Total means declined precipitously from roughly Rs. 113 Cr in FY23 to roughly Rs. 97 Cr in FY25, reflecting continuing fixed asset depreciation and a gradational reduction in current means.
• Net worth remained fairly stable at roughly Rs. 60- 64 Cr across all three times as retained earnings incompletely neutralize periodic tip distributions.
• Net debt declined sprucely from roughly Rs. 51 Cr in FY23 to Rs. 33.32 Cr in FY25, a reduction of over 34% in two times, reflecting disciplined loan disbursements funded by operating cash overflows.
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) | 14.00 | 10.00 | ~11.00 |
Cash Flow from Investing (CFI) | (2.50) | (1.80) | (1.50) |
Cash Flow from Financing (CFF) | (12.00) | (8.50) | (10.00) |
Net Change in Cash and Equivalents | (0.50) | (0.30) | ~(0.50) |
crucial compliances from the cash inflow statement
• Operating cash overflows remained constantly positive across all three financial times, supported by deprecation as a non-cash charge, chastened force operation, and gradational reduction in working capital requirements.
• Investing exoduses were modest and declining( roughly Rs. 2.50 Cr in FY23 to Rs. 1.50 Cr in FY25), harmonious with the company's strategy of sweating being means rather than bearing major capacity expansion.
Ratio | FY 2022-23 | FY 2023-24 | FY 2024-25 |
A. Profitability Ratios | |||
Operating Profit Margin (OPM %) | 8.47% | 6.40% | 6.05% |
Net Profit Margin (PAT %) | 3.19% | 0.80% | 0.54% |
Return on Equity (ROE %) | 13.2% | 2.9% | 1.86% |
Return on Capital Employed (ROCE %) | 9.5% | 5.0% | 7.29% |
3-Year Average ROE (%) | -- | -- | 6.03% |
B. Liquidity Ratios | |||
Current Ratio (estimated) | 2.2x | 2.2x | 2.3x |
Interest Coverage Ratio | 2.44x | 1.42x | 1.63x |
C. Leverage / Solvency Ratios | |||
Net Debt-to-Equity Ratio | 0.85x | 0.71x | 0.52x |
Altman Z-Score (Solvency Indicator) | -- | -- | 3.08 (Safe Zone) |
D. Valuation Ratios | |||
Price-to-Earnings (P/E) Ratio | 5.0x | 9.4x | 10.7x |
Price-to-Book (P/B) Ratio | 0.73x | 0.59x | 0.53x |
Earnings Per Share (EPS) in Rs. | 27.00 | 5.98 | 4.00 |
Dividend Yield (%) | 0.52% | 0.54% | 0.87% |
crucial compliances from fiscal rates
• ROE deteriorated from roughly 13.2 in FY23 to just 1.86 in FY25, reflecting the severe contraction of net profitability over the review period.
• Interest content tensed significantly from 2.44 x in FY23 to 1.42 x in FY24 before recovering to 1.63 x in FY25 due to lower interest costs, though it remains at a position that warrants careful monitoring.
• ROCE bettered to 7.29 in FY25 despite lower absolute gains, backed by the declining capital
5. crucial perceptivity and Interpretation
Strengths
• Long- Standing functional Track Record
◦ Over 30 times of nonstop yarn manufacturing experience since 1993, with deep institutional knowledge in specialty synthetic yarn product.
◦ Recognised supplier to buyers across 24 countries, with established long- term trade connections in competitive transnational requests.
• harmonious and Accelerating Debt Reduction
◦ Net debt declined from roughly Rs. 51 Cr in FY23 to Rs. 33.32 Cr in FY25 — a reduction of over 34 — demonstrating disciplined capital allocation and perfecting balance distance quality.
◦ Declining influence reduces periodic interest burden and strengthens the company's capacity to service scores indeed during profit downturns.
weakness
• SustainedMulti-Year profit and Profit Decline
◦ profit fell roughly 13.4 from Rs. 248 Cr in FY23 to Rs. 214.66 Cr in FY25, reflecting weak pricing power in a competitive request.
◦ PAT dropped from Rs. 7.91 Cr in FY23 to Rs. 1.17 Cr in FY25 — a decline of roughly 85 — timber near- term earnings recovery uncertain.
• Structurally Thin Net perimeters
◦ Net profit periphery of just 0.54 in FY25 leaves the company with minimum buffer against any cost escalation or demand retardation.
threat Factors
• Raw Material Price Volatility threat Polyester chief fibre and viscose chief fibre together regard for over 75 of total charges. Sharp increases in global crude oil painting or petrochemical prices directly compress operating perimeters, as demonstrated by the OPM compression from 8.47 in FY23 to 6.05 in FY25.
• client attention threat Dependence on a limited set of crucial domestic needlewomen and transnational buyers creates vulnerability to order cancellations or volume reductions from any single large account.
• Foreign Exchange Risk Export earnings nominated in USD, EUR, and other foreign currencies are subject to exchange rate oscillations that can appreciatively or negatively affect rupee realisation on transnational deals.
6. Conclusion
Suryaamba Spinning Mills Limited presents a nuanced picture of fiscal adaptability combined with near- term profitability challenges. The company's three- decade functional heritage, ISO 90012015 quality structure, and broad transnational request content give a establishment functional foundation that is n't incontinently reflected in its depressed current request valuation.
The sharp deterioration in PAT — from Rs. 7.91 Cr in FY23 to Rs. 1.17 Cr in FY25 — and the contraction of OPM to roughly 6 are the most significant fiscal enterprises of the review period. These declines are primarily attributable tomacro-driven raw material cost pressures rather than structural business failure.
From an investment viewpoint, Suryaamba Spinning Mills is a classic deep- value cyclicalmicro-cap with meaningful recovery eventuality if assiduity conditions ameliorate. crucial considerations for stakeholders include
• Value Case Trading at 0.53 x book value and a P/ E of 10.7 x( TTM), the stock appears unnaturally underrated if one expects indeed a partial recovery in earnings.
---------------------------------------------------------------------------------------------------------------------
Data Sources BSE India( bseindia.com)| Screener.in| Capital Market-- Live| Tickertape.in| ICICI Direct| Zerodha Markets( zerodha.com/markets)| Yahoo Finance| PitchBook| ZoomInfo| Tofler.in| Company Official Website( suryaamba.com)| Company Annual Reports( FY 2022- 23, FY 2023- 24, FY 2024- 25) filed with BSE India