To analyse financial performance of Vinny Overseas Ltd.
INTRODUCTION
- Brief Introduction of the company
The Vinny Oversea Ltd. A company in the textile industry established in 1992, The Company is a government recognized one star export house which operates in manufacturing and processing of textile fabric. The company mainly focused on knitted fabric and textile products used in manufacturing. It operates in domestic as well as global markets.
- Industry Overview
The Indian textile and apparel industry is significant at global as well as at country level. This industry produces economical growth and employment in the country. This industry has a very great future because of increasing demand in textile and fashionable products. However, this industry faces many challenges like raw material price fluctuation, global competition, and change in demand.
- Purpose of the Analysis
This research and analysis will help to understand the financial condition of Vinny Oversea Ltd. Also get companies information and industry knowledge. This research includes the company balance sheet and profit and loss account analysis.
COMPANY OVERVIEW
- Background and History
Vinny Overseas Ltd. established in 1992 and operates in the textile processing industry. The company’s office is located in Ahmedabad, Gujarat. Company primary operations are processing and manufacturing textile products. The company has expanded to improve capacity and develop relations with garment manufacturers.
- Business model
The company follow business Activity/ Model –
- Processing of textile Fabric.
- Manufacturing of textile products.
- Export of textile products in the global market.
- Key Product and Services
1) Dyed Fabric
2) Printed Fabric
3) Processed cotton fabric
4) Polyester and rayon blended fabric.
- Market Positioning
Vinny Overseas Ltd. operates in the small to mid-scale textile processing industry. The company competes with other textile processors in Gujarat as well as in the country. The company's competitive advantage lies in its processing capabilities and established customer relationship.
PROMOTERS / FOUNDER
Name | Designation | Role in company |
Mr. Hiralal Jagdishchand Parekh | Managing Director | Overall strategic management and leadership. |
Mrs. Latadevi Hiralal Parekh | Whole Time Director | Executive leadership and governance. |
Mrs. Nishita Shah | Whole Time Director | Executive leadership role |
FINANCIAL ANALYSIS
- Income statement
Particular | FY2025 | FY2024 |
Income from Operation | 121.57 | 112.71 |
Total Expenses | 121.53 | 109.08 |
Profit Before Tax | 7.19 | 4.35 |
Net Profit | 5.15 | 3.54 |
(in crores)
Key Observations of Income Statement:
1) Income from operation is increased in FY25 by 7.86% i.e. 121.57 Cr.
2) Net profit also increased from 3.54 Cr to 5.25 Cr. It increased approx. 45%.
- Balance sheet analysis
Particular | FY2025 | FY2024 |
Equity Share Capital | 46.52 | 23.26 |
Total Current Assets | 66.26 | 35.59 |
Total Current Liability | 20.00 | 30.99 |
Total Assets (End of FY) | 106.09 | 66.06 |
(in crores)
End of the FY25 –
1) Share capital almost rose double because of Right Issues.
2) Current Assets have increased from 35.59 Cr. To 66.26 Cr. Increased by 86%.
3) Current liabilities have decreased by 10.99 Cr.
- Cash Flow Statement
(in crores)
Cash / FY | FY2025 | FY2024 |
Operating | (14.84) | (16.21) |
Investing | (11.63) | (12.51) |
Financing | 32.51 | 28.71 |
Cash and Cash Equivalent (End) | 6.13 | 0.09 |
Note –
1) Cash from Operating and Investing activity are negative.
2) Cash from financing activity is positive because of the issue of new shares.
Key financial Ratio
- Profitability Ratio
ROE - Net profit / shareholder equity *100 = 8.88%
- Liquidity Ratio
Current Ratio – current assets / current liability = 3.31
- Leverage Ratio
Debt to Equity Ratio – Total Debt / Shareholder equity = 0.01
- Efficiency Ratio
Debt Turnover Ratio – Net Sale / Total Receivable = 6.94
- Year on year comparison ( 3 years revenue)
5. KEY INSIGHTS AND INTERPRETATION
- Strengths
1) Virtually integrated value chain with Modern manufacturing infrastructure.
2) High liquidity ratio shows companies strong financial health.
3) Low debt to equity ratio which shows very low leverage.
- Weakness
1) Profit from Operating and investing activity are negative.
2) Low foreign exchange earnings.
- Risk factor
1) Dependent on textile industry demand and export market.
2) Fluctuations in market trends and raw material prices.
- Future Outlook
The Future for Vinny overseas ltd is moderately positive due to growth in textile industry demand. The company has good financial health with continuous growth in revenue. Maintaining profit margin will help companies to sustain in the market.
6. CONCLUSION
Final evaluation of financial condition
The company is in good financial condition with continued growth in revenue and net profit. The company also has a good liquidity ratio and minimal debt. But companies only have cash from operating and investing activity in negative. They need to improve on that and try to convert into positive.
Investment / Performance Perceptive
The company Is growing a small-cap Textile Company with good financial health.
The Investor may invest because of steady growth but negative cash in financial and investing
Activities will be observed by investors.
Sources
https://www.screener.in/company/VINNY/