Hisar Spinning Mills Limited
Introduction
Hisar Spinning Mills Limited (HSML) is an Indian based textile manufacturing firm that deals with yarn production and other associated textile products. The company has its base in Hisar, Haryana, where it has the registered office and manufacturing plant.
Industry Overview
The company is involved in the textile textile and spinning business, which is among the oldest and the largest business in India.
The major industry scoop:
Plays a major role in GDP, exports and employment.
India is a top cotton and yarn manufacturer in the world.
Growth drivers:
Increasing demand of textiles in the world market.
Government assistance (PLI scheme, textile parks)
Challenges:
The volatility of the price of raw materials.
International rivalry (China, Bangladesh, Vietnam)
Purpose of the Analysis
To measure the financial performance and efficiency in operations.
To compare quality management and business strategy.
In order to evaluate the prospects of investment and future.
Company Overview
Background and History
Hisar Spinning Mills Limited is a public company (BSE) listed.
Experience in the textile industry.
Business Model
Main line of business: Production and marketing of yarn products.
Revenue generation through:
Industrial selling of textile products and yarn.
Home and possibly overseas market.
Managing on the basis of the production industry.
Key Products / Services
Cotton yarn
Blended yarn
Raw materials of fabric manufacturers.
Market Position
Mid/small-cap textile firms.
It is in a very competitive commodity business.
Competes with local mills and international exporters.
Key Management / Promoters
Mr. Anurag Gupta -Managing Director.
Mr. Mithilesh Kumar Gupta -Chairman, and Independent Director.
There are other directors, independent and executive members.
Professional Background
The promoters are well experienced in operations of textile and family business.
Mrs. Sapna Kansal (Director) experiences of 21 years and 10+ as Whole-Time Director.
Role in Company Growth
Responsible for:
Strategic decision-making
Financial management
Operational efficiency
The stability in leadership is denoted by long-term involvement.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 46.69 | 41.98 | 44.88 |
Gross Profit | 8.03 | 5.56 | 6.55 |
EBITDA | 7.04 | 4.73 | 5.68 |
Depreciation | 2.49 | 1.69 | 1.31 |
Interest | 0.31 | 0.24 | 0.36 |
Earnings Before Tax (EBT) | 4.24 | 2.80 | 4.01 |
Net Profit | 3.32 | 2.01 | 2.92 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 3.74 | 3.74 | 3.74 |
Reserves | 16.51 | 18.53 | 21.47 |
Equity (Total) | 20.25 | 22.27 | 25.21 |
Borrowings | 2.95 | 3.09 | 7.19 |
Other Liabilities | 2.96 | 1.50 | 1.53 |
Total Liabilities | 26.16 | 26.86 | 33.93 |
Fixed Assets | 7.07 | 5.44 | 8.62 |
Current Assets | 14.85 | 15.50 | 19.41 |
Total Assets | 26.16 | 26.86 | 33.93 |
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 |
Ratio Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | 7.11% | 4.79% | 6.51% |
Gross Profit Margin % | 17.20% | 13.24% | 14.59% |
Current Ratio | 5.02 | 10.33 | 12.69 |
Debt to Equity | 0.15 | 0.14 | 0.29 |
Asset Turnover | 1.78 | 1.56 | 1.32 |
Important Insights and Interpretation.
✅ Strengths
Existing firm having a track record of 33 years or more.
Seasoned management staff.
Good positive trend in profitability:
The profit after tax was enhanced to 292.81 lakh (FY25) compared to 201.01 lakh (FY24) (Page 11 table).
Minimal reliance on foreign deposits (no foreign deposits)
❌ Weaknesses
The business is in a low-margin commodity industry.
Small scale in contrast to big players in the textile industry.
Exposed to the price changes (cotton, power, etc.)
⚠️ Risk Factors
Sensitivity of the prices of raw materials (cotton prices)
World competition of low cost producers.
Seasonal changes in demand of the textile markets.
Risk of regulation and exportation.
📈 Future Outlook
Middle growth anticipated because of:
Rising textile demand
Government support in the industry.
Retained earnings of the company to expand in future (no dividend paid)
Concentration probably on efficiency and cost management in operations.
Conclusion
Financial Health Assessment.
Company presents steady and rising profitability.
Middle-income yet economically-restrained.
No great red flags in governance
Investment / Performance Perspective: a younger player in the team can score more than the seniors who are more reliable and also able to sustain a physical load throughout the season (Bass 3).
Positives:
Improving profits
Stable management
Low debt risk
Concerns:
Industry cyclicality
Limited growth visibility.