KG Denim Ltd. (F.Y. 2024-2025)
Executive Summary
KG Denim Ltd. is one of India's textile manufacturing companies. The company operates in the production of denim fabric, apparel fabrics, and home textile. The company operates its integrated manufacturing plant in Tamil Nadu and feeds to both domestic and international markets. KG Denim Ltd. focuses on high-quality products and sustainable textile products. During 2025, the company’s revenue has declined. The company faced challenges such as change in raw material prices, change in consumer needs, and uncertainty in economics. KG Denim is improving its operational efficiency, product innovation, and sustainable manufacturing practices. The company focuses on eco-friendly products, energy conservation measures, etc.
Company Overview
KG Denim Ltd. is the leading textile manufacturing company in India. It was established in 1992. The company operates in the production of denim fabric, apparel fabrics, and home textile. The company operates its integrated manufacturing plant in Tamil Nadu and feeds to both domestic and international markets. KG Denim Ltd. focuses on high-quality products and sustainable textile products. The company operates various operations such as spinning, weaving, processing, and garment manufacturing.
Industry Overview
KG Denim ltd. is a textile manufacturing company. It has a steady growth due to increasing urbanization, rising disposable income, changing fashion trends, and growing demand for casual wear. The company offers both domestic and international markets for growth opportunities for denim manufacturers. The company faced challenges such as change in raw material prices, strong competition, change in consumer needs, rising energy costs, and uncertainty in the economy. The company focuses on innovation, operational efficiency, digital transformation, and sustainable products.
Financial Performance (for the year ended as on 31, march 2025) (Rs.in Lakhs)
Particulars | 2025 | 2024 |
Revenue from operations | 4,920.66 | 25,642.88 |
Other income | 785.19 | 326.67 |
Expenses | ||
Cost of material consumed | 1,102.04 | 12.761.08 |
Purchase of stock-in-trade | 6.26 | 487.04 |
Changes in inventories of FG, WIP and stock-in-trade | 2,827.06 | -572.58 |
Other manufacturing expense | 1,886.32 | 6,847.33 |
Employee benefits expense | 2,088.62 | 4,372.93 |
Finance cost | 2,889.07 | 2,391.47 |
Depreciation and amortization expense | 886.96 | 1,457.21 |
Other expenses | 760.60 | 1,996.08 |
Profit before exceptional items and tax | -6,720.81 | -3,771.01 |
-DEPB receipts | - | 256.75 |
-Excise duty refund | 2,039.72 | - |
Profit before tax | -4,681.09 | -3,514.26 |
Tax expense: | ||
-Deferred tax | -1,093.74 | -988.21 |
-Income tax for earlier years | 99.62 | - |
Profit/(loss) (after tax) | -3,587.97 | -2,526.05 |
Source: Annual Report of KG Denim Ltd. 2025
Key Financial Ratio
Particulars | 2025 | 2024 |
Current ratio | 1.16 | 0.76 |
Debt-equity ratio | -59.29 | 5.88 |
Net profit margin | -72.91% | -9.85% |
Return on asset (ROA) | -10.75% | -6.18% |
Return on equity (ROE) | -228.68% | -71.42% |
Operating profit margin | -77.84% | -9.04% |
Inventory turnover ratio | 0.14 | 1.34 |
Source: Annual Report of KG Denim Ltd. 2025
SWOT Analysis
Strengths 1.The company has a strong manufacturing base. 2.The company has a strong focus on innovation, sustainability, etc. 3.The company has a strong domestic and international market. | Weaknesses 1. The company highly depends on raw material prices and cotton. 2.The company’s revenue has declined. 3.There is a weak financial position. |
Opportunities 1.The company’s demand is growing for sustainable and eco-friendly products. 2. The company can expand its business. 3.The company has government support. 4.The company’s demand is growing for denim and casual wear. | Threats 1.The company has strong competition. 2. There can be economic slowdown and uncertainty in the market. 3.Changing in consumer choice and fashion trends. |
Conclusion
KG Denim Ltd. is the leading textile manufacturing company in India. KG Denim Ltd. focuses on high-quality products and sustainable textile products. The company faced challenges such as change in raw material prices, change in consumer demand, and uncertainty in economics. KG Denim is improving its operational efficiency, product innovation, and sustainable manufacturing products. The company focuses on innovation, operational efficiency, digital transformation, and sustainable products. KG Denim Ltd. is well-established for future growth.