1. INTRODUCTION

• Brief Introduction of the company  

Founded in 1957, Wires and Fabriks (S.A.) Limited is a public limited business with its headquarters located in Kolkata. It is renowned for creating paper machine clothes, such as wire cloth and conveyor belts, which are crucial to paper production processes. It is a creation of technical textile and has a solid market reputation for quality and innovation in product because of decades of experience. 

• Industry Overview  

The Indian textile and apparel industry is significant at global as well as at country level. This industry generates employment and improves the country's GDP. The industry has a very good future ahead, because of continuous changes in market demand and market trends. But the industry also faces many challenges related to raw material prices, global competition and consumer choices. 

• Purpose of the Analysis 

This research and analysis will help to understand the financial condition of Wire and Fabrics (S.A) Ltd. also this analysis will help to know more about the company and about the textile industry in the country... The analysis will cover all companies’ profit and loss statements, balance sheets and key financial ratios. 

2. COMPANY OVERVIEW 

• Background and History 

Using German technology, the Wire and fabriks ltd started producing in Jaipur in 1963. It was the first in India to introduce a number of cutting-edge synthetic forming fabrics, including SSB range fabrics (2006), Double Layer (1986), and Triple Layer (1996). It increased the variety of products it offered and solidified its position in both local and foreign markets throughout time. It has continuously prioritized quality enhancement and innovation.

• Business model

The company follow Trading and Manufacturing Model-

1) Manufacturing of industrial technical textiles.

2) In-house R&D and product development.

3) Exporting Products to domestic and global markets.

• Key Product and Services 

1)  Paper clothing machine

2) Dryer screens

3) Pulp fabric and technical fabric 

4) Paper making chemicals.

• Market Positioning 

One of the few manufacturers of SSB fabrics worldwide, wires and Fabriks leads the synthetic forming fabric market in India and the subcontinent. In the specialized market of technical textiles for the paper industry, the company is well-positioned. It keeps a competitive edge because of its extensive experience, high-quality products, and technological know-how.

3. PROMOTERS / FOUNDER

4. FINANCIAL ANALYSIS

• Income statement analysis  

                                                                                                                         (InLakhs)                                                                                                                    

Key observations of Income Statement:

1) There is slightly growth in sales which show steady growth in business

2) The PBT shows a huge difference but in PAT there is only a small increase because of tax adjustments.

• Balance sheet analysis                                                                   

                                                                                                            (InLakhs)                                                                                                        

End of the FY25 –

1) Equity share capital – There is no change in Equity share capital.

2) Current assets – Increased to 7802 lakhs in FY25 reflecting maintaining high inventories for exporting globally. 

3) Current Liability – Increased to 6377 lakhs in FY25 it shows an increment in short term borrowing and trade payable.

• Cash Flow Statement 

                                                                                                                             (In Lakhs)

            Noted –

1) Huge increases in cash from operating and financing activities, it shows the company is growing continuously with good liquidity.

2) The negative cash from investing activity indicates the cash has been used for competition of expansion projects and other uses.

• Key financial Ratio 

• Profitability Ratio  

Net Profit Margin = 1.38%

•  Liquidity Ratio  

  Current Ratio = 1.22

•  Leverage Ratio   

Debt / Equity Ratio = 2.51

• Efficiency Ratios

Earnings per Share = 4.92

• Year on year comparison ( 3 years revenue)

5. KEY INSIGHTS AND INTERPRETATION 

• Strengths 

1) Dominant position in the technical textile market for the paper industry in India

2) Recognized by the Govt. of India, ensuring a strong technological base

3) Completion of the expansion project has prepared the company for higher future production capacity.

• Weakness 

1) The Debt-Equity ratio has increased significantly due to long-term borrowings for the modernization project

2) The company has relatively less Net profit. 

• Risk factor 

1) Increase the pressure from both the domestic and global suppliers.

2) Exposure to foreign markets and currency fluctuate due to import and export.

• Future Outlook 

After the completion of the expansion project, the business is well-positioned for growth, enabling it to service more clients and maybe boost performance in the years to come. Given the rising demand for paper goods and packaging, the company's future is secure. Growth can be further accelerated by innovation and technical textile expansion.

6. CONCLUSION 

Final evaluation of financial condition

The company shows operational stability with a strong market position and a successful transition through a major modernization phase. While current liquidity has slightly tightened and debt levels have risen, these are strategic investments aimed at long-term capacity building. 

Investment / Performance Perspective

 From a performance perspective, the company is primed for a recovery in turnover and profit as the new production capacity is utilized. However, investors should monitor the company's ability to manage its increased debt and navigate foreign exchange volatility

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Sources

https://www.screener.in/company/507817/ 

https://www.wirefabrik.com/