Hindoostan Mills Limited
Introduction
Hindustan Mills Limited is an Indian firm that mainly indulges in the production of textiles and engineering textiles machinery products. The corporation enjoys a glorious history of operation and it is listed in the Bombay Stock Exchange (BSE). It has manufacturing plants in Maharashtra and branches towards providing products to the textile and technical textile industries.
Industry
The textile and engineering equipment industry is the field of operation of the company. Indian textile industry is an old and largest industry with a high rate of employment and export. But the industry has problems with fluctuating price of raw materials, international competition and shifting patterns of demand.
Purpose of the Analysis
This analysis will attempt to: Review the business operations and management of the company. Know the financial performance and the operation issues. Determine the strengths, risks and future of the stakeholders and investors.
Company
Background and History
Hindoostan Mills Limited is a company that was founded in 1904 and has experienced more than 100 years in the textile industry. The company is based at Worli, Mumbai, Maharashtra as the registered office. Hindustan Mills Annual Report. The company had over the years spread its operation to engineering products that pertained to textile machines and industrial equipment.
Business Model
The company has two segments which operate predominantly:
Textile Division
Production of textile products. Its operations were however suspended briefly in October 2024 with low demand and operating losses.
Engineering Division
The production of machinery and rolls in the textile industry and technical textile industry. The export of machinery and engineering items to the foreign markets. Product manufacturing, machine sales, and exports are revenue generating activities in the firm.
Key Products / Services
Textile and paper machinery and rolls. Designing equipment used in technical textile.
Market Position
Hindustan Mills is a small or medium size player in the textile manufacturing industry. With high competition and the product demand is on the fall, the company is reshaping its priorities towards engineering products and technical textile machinery with more growth opportunities.
Promoter / Founder.
Khushaal C. Thackersey -Joint Managing Director
He is a graduate in commerce. He has worked in production, marketing, finance and accounts in the engineering sector
Abhimanyu J. Thackersey Joint Managing Director
Another important character who takes part in the running of the company and strategy making is Abhimanyu J. Thackersey
Role in company growth and strategic decisions
Operational and financial strategies.
Restructuring business to engineering and technical textile.
Choosing the key strategic move like shutting down the textile division since it is making losses in the long term.
Financial
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 99.09 | 88.26 | 33.15 |
Gross Profit | 1.94 | 8.01 | -4.66 |
EBITDA | -2.46 | 3.85 | -8.56 |
Depreciation | 3.91 | 2.16 | 1.97 |
Earnings Before Tax | -6.80 | 1.27 | -10.77 |
Net Profit | -6.80 | 1.27 | -10.77 |
Interest | 0.43 | 0.42 | 0.24 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 1.66 | 1.66 | 1.66 |
Reserves | 47.18 | 48.47 | 37.49 |
Borrowings | 1.95 | 1.50 | 1.02 |
Other Liabilities | 25.06 | 23.48 | 15.12 |
Total Liabilities | 75.85 | 75.11 | 55.29 |
Fixed Assets | 16.86 | 15.00 | 13.37 |
Current Assets | 37.15 | 38.44 | 18.48 |
Total Assets | 75.85 | 75.11 | 55.29 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Cash Flow from Operating Activities | 18.43 | 9.73 | 29.31 |
Cash Flow from Investing Activities | 4.33 | 9.15 | -15.07 |
Cash Flow from Financing Activities | -22.54 | -22.44 | -10.34 |
Net Cash Flow | 0.22 | -3.56 | 3.90 |
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | -6.86% | 1.44% | -32.49% |
Gross Profit Margin % | 1.96% | 9.08% | -14.06% |
Current Ratio | 1.48 | 1.64 | 1.22 |
Debt to Equity | 0.04 | 0.03 | 0.03 |
Asset Turnover | 1.31 | 1.18 | 0.60 |
Strengths
Over 100 years of operation in the textile industry.
Footprint in textile and engineering. So, it can export to other countries like Bangladesh and Turkey.
Knowledgeable promoter management.
Weaknesses
Reducing sales of textile products.
The textile division has experienced continuous losses over the past five years.
Indeed, suspension and scheduled shutdown of the textile unit.
Risk Factors
Change in the prices of raw materials.
International recession in textile and paper.
Threat posed to the product by other textile producers.
There is the risk of operational restructuring following the closure of textile units.
Future
The company will also aim at concentrating more on engineering products and technical textile machinery, which are more likely to succeed in the market than traditional textile manufacturing. The reorientation to engineering exports can enhance profitability provided that it is done effectively.
Final evaluation of financial health
This has resulted in the company experiencing financial difficulties with the falling demand of the textiles and the losses incurred during its operation. Weak profitability is shown when in FY 2024-25, the revenue decreased greatly and the company incurred a net loss of approximately 1077.34 lakhs. Nevertheless, there is an active potential in the engineering division and exporting.
Investment or performance perspective
The moderate to high risk of the company is caused by the operational reorganization and previous losses. The success of the engineering business and the expansion of the technical textile market will be the basis of future performance.