PATSPIN India Limited
Introduction
PATSPIN India Limited is a textile manufacturing firm located in Kochi, Kerala which deals in production of cotton yarn and other related textile products. It is a stock exchange listed corporation that is a member of the GTN Group.
Industry Overview
It is a company that deals in spinning and textile of the Indian industry.
India is also among the major cotton and yarn producers in the world.
The contribution of the textile sector to GDP, employment and exports is high.
Growth drivers:
Growing demand for textiles all over the world.
Governmental programs (PLI scheme, textile parks)
Challenges:
The volatility of the price of raw materials (cotton)
This is due to high competition from China, Bangladesh, Vietnam.
Purpose of the Analysis
It is to gauge financial performance and operational strength.
To examine efficiency and strategy of management.
To calculate the potential of the investment and their risk.
Company Overview
Founded in 1991 (according to CIN information)
Its headquarters is in Kochi, Kerala.
The report is the 34th Annual Report (FY 2024 25).
The history of existence in the textile business.
Business Model
Key business: The production and sale of yarn products.
Revenue streams:
Sale of cotton yarn
Activities in textile manufacturing.
It is a manufacturing company that is based on production.
Key Products / Services
Cotton yarn
Blended yarn
Raw materials in the textiles to be used by the fabric manufacturers.
Market Position
Medium/minor textile firms.
As part of GTN Group, providing certain strategic support.
Carries out in a very competitive commodity business.
3. Promoter / Founder Introduction / Introduction Promoter / Founder Introduction.
Key Promoters and Management
Shri B.K. Patodia – Chairman
Shri Umang Patodia -Managing Director.
Assisted by CFO and Company Secretary.
Professional Background
Promoters are of Patodian family with good background in textile.
Long experience in procurement, spinning and textile processes of cotton.
Example:
The experience of directors in the leadership positions in the textile industry is decades old.
Role in Company Growth
Decision-making in strategic areas in:
Expansion and operations
Financial restructuring
Unsecured promoter loans
Having Strategic Insights and Interpretation.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 74.87 | 43.84 | 47.33 |
Gross Profit | -0.25 | 7.73 | 3.48 |
EBITDA | -0.48 | 4.05 | 0.59 |
Depreciation | 7.15 | 3.15 | 2.96 |
Interest | 10.52 | 7.55 | 7.41 |
Earnings Before Tax (EBT) | -18.15 | -6.65 | -9.78 |
Net Profit | -18.15 | -6.65 | -9.78 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 30.92 | 30.92 | 30.92 |
Reserves | -68.71 | -75.29 | -85.29 |
Equity (Total) | -37.79 | -44.37 | -54.37 |
Borrowings | 97.19 | 94.23 | 102.11 |
Other Liabilities | 38.30 | 38.91 | 33.88 |
Total Liabilities | 97.70 | 88.77 | 81.62 |
Fixed Assets | 68.59 | 64.93 | 62.84 |
Current Assets | 7.24 | 0.40 | 0.36 |
Total Assets | 97.70 | 88.77 | 81.62 |
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 % | -24.24% | -15.17% | -20.66% |
Gross Profit Margin % | -0.33% | 17.63% | 7.35% |
Current Ratio | 0.19 | 0.01 | 0.01 |
Debt to Equity | -2.57 | -2.12 | -1.88 |
Asset Turnover | 0.77 | 0.49 | 0.58 |
✅ Strengths
Best promoter support (Patodia group)
Extensive history of operation (30 years and above)
Access to banking relationships:
SBI, Central bank, Karur vysya bank.
Experience and technical skills in the industry.
Capability to attract promotion funds.
❌ Weaknesses
The company works in the textile industry with low margins.
Dependence on cotton prices
Small scale as opposed to big players in textile.
A large amount of working capital is needed.
⚠️ Risk Factors
Fluctuations of the prices of raw materials (cotton).
Low cost country competition in the world.
The changes in demand in the export markets.
financial pressure (must borrow promoter loans means the stressful factor is present).
📈 Future Outlook
Middle growth projected as a result of:
Rising textile demand
Government support
Focus likely on:
Cost efficiency
Operational improvement
Sustainability depends on:
Demand recovery
Better margin control
Last Analysis of Financial Health.
Financial performance has been mixed at the company.
Reliance on promoter funding refers to moderate financial stress.
Not high growth but stable operations.
Investment/performance perspective is an important aspect of success when it is implemented in the corporate world.
🔹Positives:
Strong promoter support
Experienced management
Having industry presence.
🔹 Concerns:
Cyclical industry
Margin pressure
Financial dependency