To Analyse Financial Performance of Rachit Prints Limited

1. Introduction

Brief Introduction of the Company

Rachit Prints Limited is an Indian textile manufacturing company mainly in the production of special fabric used in mattresses and home textiles. The company mainly operates on manufacturing knitted, printed, and wrap-knit fabric which supply to other mattress manufacturers all over the country. For a long time, the company has offered a customized fabric solution to its customers and satisfied their demand. 

Industry Overview

The textile industry is one of the largest industries in the Indian economy, which contributes to developing employment and generating export revenue. In this industry, the home textile and mattress fabric product has been increasing because of the increase in urbanization, rising income of individuals, and changing lifestyle.

Purpose of the Analysis

The main purpose of this analysis is to know more about the company. To gain more information about the financial performance, operational efficiency, and the overall financial position of Rachit Prints Limited.

2. Company Overview

Background and History

Rachit Print Limited was established on March 31, 2003. Before this company founders were involved in a partnership with M/S Rachit Prints, which focused on the printing and manufacturing sector. After incorporation, the company took over the business operation of the partnership firm and continued expanding. In 2004, the company converted from private limited to public limited and changed the name to Rachit Prints Limited.

Business Model

Rachit Print Limited operates in the Business to Business (B2B) model, supplying specialized fabric to manufacturers and textile businesses. The company maintains an in-house manufacturing system, which helps to maintain better quality control and operational efficiency.

Key Products and Services

1. Knitted fabrics
2. Mattress fabric
3. Wrap-knit fabrics
4. Printed fabrics
5. Pillow fabrics

Market Positioning

The company operates in a niche market in the textile industry by focusing on mattress fabric. The company maintains very good relations with several mattress manufacturers across India. The company maintains a competitive position in the textile market through specialization in knitted and printed fabrics.

3. Promoters / Founder                              

Name of Promoters

1. Mr. Anupam Kansal (Managing Director)
2. Ms. Naina Kansal (Whole Time Director)
3. Ms. Rose Kansal (Non-Executive Director)                                               Mr.Anupam Kansal

Professional Background

1. Mr. Anupam Kansal (Managing Director) - He has 3 decades of experience in the textile and apparel industry.
2. Ms. Naina Kansal (Whole Time Director) – Extensive experience in textile manufacturing and associated with the company for many years. She has expertise in manufacturing management in the textile industry.
3. Ms. Rose Kansal (Non-Executive Director) – Working with the company for the last 2 years and pursuing engineering in computer science from Netaji Subhash Institute of Technology.

Role in Company

1. Mr. Anupam Kansal (Managing Director) - He dynamically manages company operations and always looks for new innovations and opportunities.
2. Ms. Naina Kansal (Whole Time Director) – She is handling the business trading of fabrics and thread to the company by showcasing a strong foundation in business.
3. Ms. Rose Kansal (Non-Executive Director) – Her agile mindset and innovative ideas help companies to develop fresh perspectives into business.

4. Financial Analysis

Income Statement Analysis

(In Lakhs)

Key Observations of the Income Statement

1. Revenue has increased from 3238.75 lakhs in 2023 to 4178.43 lakhs in 2025.
2. Net profit after tax has increased year by year in the last 3 FY.

Balance Sheet Analysis

End of the FY25 -

1. Total Assets: Up by 37.17% as compared to the previous year, i.e., 1902.36 lakhs.
2. Total Current Liability: 5% deduction in total current liability as compared to FY24.
3. Total Shareholder Funds: 684 lakhs, an increase in shareholder funds in FY25.

Cash Flow Statement

(In Lakhs)

Note - Net change in cash and cash equivalent in FY25 is positive, whereas in the last 2 FY it was negative. Positive cash flow shows the company was able to generate cash in this financial year.

Key Financial Ratio

1. Current Ratio – Current Assets / Current Liabilities = 1.69
2. Debt Equity Ratio – Total Debt / Equity = 0.75
3. Net Profit Ratio – Total Profit After Tax / Net Sales = 10.94%

Year-on-Year Comparison

5. Key Insights and Interpretation

Strengths

1. Experienced management team with decades of experience.
2. Strong relation with mattress manufacturing.
3. Growing demand in the home textile and materials industry.

Weakness

1. Limited type of product.
2. High dependency on the raw material supplier.

Risk Factor

1. Large competition from the big textile industry leaders.
2. Volatility in raw material prices.

Future Outlook

There is a positive future for Rachit Print Limited because there is an increase in demand for quality fabric in home mattress and home textile. They can expand their manufacturing capacity and adopt the latest technology for future demand.

6. Conclusion

Final Evaluation of Financial Condition

Based on their annual financial report, the company is doing well and having a stable increment in profit. The company maintains a limited debt level, and they also invested in the latest technology for their growth.

Investment / Performance Perspective

Companies have a great future and constant growth; this is a very positive environment for investment with very promising growth potential from the company. In the future, this industry has many more chances for improvement or expansion, so they will require many more investments to expand.

Sources

• https://rachitprints.co.in/
• https://www.screener.in/company/544503/