Parmeshwari Silk Mills Limited
Introduction
Parmeshwari Silk Mills Limited is an Indian textile production firm that deals with production and processing of textile products including yarn and fabrics. The company is based in Ludhiana in the Punjab which is among India's major manufacturing centers of textiles. The company is traded on BSE Limited and Calcutta Stock Exchange.
The company specializes in textile production and distributes products that are applied in the apparel and other textile related sectors. By its operation, the company will continue to grow steadily and enhance efficiency in its operations in the competitive textile industry.
Industry Overview
Indian Textile Industry is one of the majority and oldest manufacturing industries in India. It consists of spinning, weaving, knitting, processing, and the manufacturing of garments. The industry contributes significantly to the economy of India by creating employment, export revenues and production by industries.
It is projected that the Indian textile and apparel market will reach about USD 240 billion in the year 202324 and reach about USD 350 billion by the year 2030 as a result of the growing domestic demand and export potential.
The textile sector is providing 2-2.3 percent of the Indian GDP and an estimate of 13 percent of industrial output in India. It is also a major exporter of almost 812 per cent in India.
The industry directly employs over 45 million individuals and is therefore the second-largest employer of Indian nationals after agriculture. India has its own portion in the world textile market in the range of 3-4 percent and the export of its textiles amount to about USD 35-36 billion in FY 2023-24.
Parmeshwari Silk Mills Limited is an industry player in the fabric and yarn manufacturing segment with the advantage of local and export markets and disadvantage of intense competition and fluctuations in raw materials prices.
Purpose of the Analysis
This analysis will aim to:
Know about the business operations and organization of Parmeshwari Silk Mills Limited.
Consider the company management and leadership.
Evaluate the financial performance and the strategy of the company.
Determine the strengths, weaknesses, risks and the future of the company.
Company Overview
Parmeshwari Silk Mills Limited was established in the year 1993 and has expanded to be a textile manufacturing enterprise that deals with the production of yarn and fabric. The head office of the company is situated at Village Bajra, Rahon Road, Ludhiana, Punjab.
The subsidiary company is also called Harappa Textile Mills Private Limited that is in the textile industry.
Business Model
The business model of the company is the manufacturing and sales-based that incorporates:
Purchasing of raw materials like yarn and fibers.
Textile products manufacturing and processing.
Retailing of finished textile products to distributors, wholesalers and industrial consumers.
The textile products and related operations contribute to the main source of revenue.
Key Products / Services
The company mainly deals in:
Textile yarn
Fabric processing
Making of textile products.
The garment and textile industry is one of the areas where these products are common.
Market Position
Parmeshwari Silk Mills is a small-mid size Indian textile company that is listed. Although it is not one of the largest textile participants, it still has a stable position in the world of textile manufacturing.
On a standalone basis, the company registered FY 2024-25 income of approximately 228.25 crore as a result of operations.
Introduction Promoter / Founder.
Mr. Jatinder Pal Singh is one of the main promoters and leaders of the company and is serving as the Whole-Time Director since its inception in the company many years ago.
Professional Background
Graduate by qualification
Proficiency in manufacturing, management and administration.
Many years of experience in the textile industry and the work of a company.
Responsibility in Company Development and Strategic Choices.
Mr. Jatinder Pal Singh has a significant part in:
Operation and production management.
Strategic business decision making.
Managing the development of the company and future planning.
The company has been stable and developed due to his leadership.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 171.69 | 202.52 | 227.83 |
Gross Profit | 21.50 | 26.30 | 29.86 |
EBITDA | 16.81 | 19.40 | 22.96 |
Depreciation | 3.05 | 3.39 | 3.81 |
Interest | 6.52 | 7.91 | 8.95 |
Earnings Before Tax | 7.24 | 8.10 | 10.20 |
Net Profit | 5.52 | 5.97 | 7.56 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 3.00 | 3.00 | 3.00 |
Reserves | 37.26 | 43.09 | 50.52 |
Borrowings | 90.00 | 112.54 | 112.37 |
Other Liabilities | 31.85 | 44.51 | 42.98 |
Total Liabilities | 162.11 | 203.14 | 208.87 |
Fixed Assets | 40.09 | 47.75 | 51.07 |
Current Assets | 101.68 | 134.56 | 142.61 |
Total Assets | 162.11 | 203.14 | 208.87 |
Cash flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Cash Flow from Operating Activities | 1,843 | 973 | 2,931 |
Cash Flow from Investing Activities | 433 | 915 | -1,507 |
Cash Flow from Financing Activities | -2,254 | -2,244 | -1,034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | 3.21% | 2.95% | 3.32% |
Gross Profit Margin % | 12.52% | 12.99% | 13.11% |
Current Ratio | 3.19 | 3.02 | 3.32 |
Debt to Equity | 2.23 | 2.44 | 2.10 |
Asset Turnover | 1.06 | 1.00 | 1.09 |
Important Insights and Interpretation.
Strengths
Stable growth in profitability where the net profit will rise to 7.56 crore in FY 2025 as compared to 5.96 crore in FY 2024.
Long and experienced management.
It is located in Ludhiana which is a large textile production area.
Public company that is well governed and regulated.
Weaknesses
Minor scale as opposed to large textile firms.
Lack of product diversification.
Reliance on cycles of demand for textiles.
Risk Factors
Unpredictable prices of raw materials like cotton and yarn.
The evolving demand and export conditions in the global textile market.
High competition, both local and foreign textile producers.
Future Outlook
It can be noted that the company has a moderately positive future outlook because of:
Increasing local textile supply.
Textile manufacturing initiatives done by the government.
Expanding the market of Indian textile products.
By increasing the production capacity and becoming more efficient in its operations, the company will be able to attain long-term growth.
Conclusion
Parmeshwari Silk Mills Limited has a stable financial performance with an improving profitability. The financial performance of the company in FY 2024-25 showed that the net profit and earnings per share were larger, which shows enhanced business efficiency.
Investment or Performance Perspective.
Analytically, it is clear that:
There seems to be moderate growth prospects and the company seems financially stable.
Good operating momentum is depicted by profit growth.
The competition in the industry and risks in the sector are however issues to be taken into consideration by investors prior to making an investment decision.
All in all, it is possible to note that Parmeshwari Silk Mills can be regarded as a stable textile production firm that has a stable growth perspective in the Indian textile sector.