UNTTEMI
- INTRODUCTION
- Introduction of the company
It began from Finance, then gradually United Leasing and Industries Limited now shapes premium textiles and property. Based in Gurugram, Haryana, the firm shifted gears after early years focused on leasing deals.
- Industry Overview
- Textile: Clothing work adds up to 2.3 percent of the country’s total output. From exports, it pulls in 12 percent of income. Embroidery fits into finer fabric types - this is where ULIL works. Growth could hit 10% yearly. This rise ties to efforts pushing local production forward.
- Real Estate: nationwide building activity lifted machine demand fast last year. A quarter of every new sale came just from major civil works projects reshaping city zones. $7.46 billion dollars marked total worth across factories, cranes, and earthmovers combined.
- Purpose of the Analysis
- To study how ULIL shifted from old-style leasing into textiles and property work, this review looks at its latest financial bounce-back alongside its balance sheet.
2. COMPANY OVERVIEW
- Background and History
Back in 1983, the Khanna family set up ULIL, focused purely on lease and loan financing. By 1995, things shifted - fabric production entered the picture through a shared venture with Saurer Embroidery Systems Limited from Switzerland, known worldwide for advanced stitching tech, splitting control equally between partners
- Business Model
ULIL follows a hybrid revenue model:
- Fine embroidered textiles take shape through precision tools from Switzerland, built for luxury clothing lines. These materials emerge via advanced methods.
- The Company finds value in unused ground spaces near Gurugram, Haryana by building homes and renting out sections for steady returns. I
- Key Products / Services
The key products offered by the company are as follows-
- High-End Embroidered Fabrics: Intricate lace and embroidery work for domestic and international fashion brands.
- Industrial Leasing: Legacy business of equipment and vehicle hiring.
- Real Estate Holdings: Management of strategic land banks in prime industrial corridors.
- Market Position
ULIL occupies a specialized niche position. Unlike mass-market textile players, ULIL operates on a smaller scale with a focus on high-margin embroidery. In the Gurugram industrial belt, it is recognized as an early-mover that successfully bridged the gap between European embroidery technology and Indian cost-efficiency.
3.PROMOTER /FOUNDER INFORMATION
Name of Promoter | Professional Background | Role in Growth & Strategy |
|---|---|---|
Mr. Anil Kumar Khanna | Chartered Accountant (England & Wales); Economics Graduate from St. Stephen’s College. | Chairman; provides financial oversight and strategic direction for real estate monetization. |
Mr. Aditya Khanna | Professional background in corporate management and tennis administration. | Executive Director; focuses on operational turnaround and modernizing the embroidery division. |
4. FINANCIAL STATEMENT ANALYSIS
- Income Statement Analysis
Particulars (Rs. Cr) | FY 2022-23 | FY 2023-24 | FY 2024-25 (Est.) |
|---|---|---|---|
Total Revenue | 7.03 | 7.20 | 8.06 |
Net Profit | (0.04) | 0.11 | 0.12 |
Key Observations of Income Statement:
5-Year Chart shows a recovery trend from COVID-era stagnation, with 2025 marking a consistent return to marginal profitability.
NOTE: The figures for the Company for FY 2024-25 are labelled "Estimated" because, the company has only released its Unaudited Quarterly Results for the first three quarters (Q1, Q2, and Q3).
- Revenue Chart
- Balance Sheet Analysis:
Liabilities | Rs. Cr | Assets | Rs. Cr |
|---|---|---|---|
Equity Capital | 3.00 | Net Fixed Assets | 5.91 |
Reserves & Surplus | (0.04) | Inventories | 2.10 |
Borrowings | 5.07 | Loans & Advances | 7.03 |
Total | 8.03 | Total | 15.04 |
As of FY25:
- Ownership of Capital is very concentrated.
- Most of the assets sit in Loans & Advances, showing how the business started long ago in finance.
- The real estate land parcels in Gurugram are likely carried at historical costs, meaning the actual market value of assets exceeds the book value.
- Cash Flow Statement Analysis (Rs. In crore)
Particulars | FY 2024-25 | FY 2023-24 |
|---|---|---|
Operating Cash Flow | 0.17 | 0.80 |
Investing Cash Flow | 0.08 | (0.05) |
Financing Cash Flow | (0.24) | (0.72) |
Net Cash Movement | 0.01 | 0.03 |
Closing Cash Balance | 0.09 | 0.08 |
Interpretation:
- Cash keeps flowing in due to the embroidery work - about ₹17 Lakhs came through but, the significant drop from last year shows that more money is currently stuck in "unpaid bills" i.e. the receivables or unsold stock.
- The ₹0.24 Cr outflow nearly all goes toward interest. Instead of growing, money gets soaked up by loan costs. Profits barely cover what the debt demands.
- With just ₹9 Lakhs left by year-end, any small slip could cause trouble. Running on such tight funds means ULIL survives only by collecting cash fast enough to pay what it owes each day.
- Key Financial Ratios
Category | Ratio Name | Value | Interpretation |
|---|---|---|---|
Profitability | ROCE | 2.67% | Low; indicates the company is not yet earning high returns on its capital. |
Liquidity | Current Ratio | 1.15 | Tight; the company has just enough current assets to cover near-term debts. |
Leverage | Debt to Equity | 0.72 | Moderate; manageable, but high for a micro-cap with low margins. |
Efficiency | Inventory Turnover | 3.84 | Average; reflects the seasonal nature of the high-end embroidery market. |
- Year-on-Year Comparison (3 years)
Particulars | FY 2022-23 | FY 2023-24 | FY 2024-25 |
|---|---|---|---|
Total Revenue | 7.03 | 7.20 | 8.06 |
YoY Growth (%) | — | +2.4% | +11.9% |
Total Expenses | 7.08 | 7.05 | 7.89 |
Profit Before Tax (PBT) | (0.05) | 0.15 | 0.17 |
Net Profit (PAT) | (0.04) | 0.11 | 0.12 |
Net Profit Margin (%) | -0.56% | 1.52% | 1.48% |
Interpretation:
- FY25 hits ₹8.06 Cr - highest in half a decade - showing stronger demand, more orders rolling in for stitched products.
- A shift in direction followed the turning point of fiscal year 2023. Profits returned,
breaking a streak of losses.
- A 12% boost in income didn’t ease financial strain, costs climbed just the same.
Since prices can’t be shifted easily, profit space shrinks when materials get pricier.
- Strengths
- Technological Edge: The Saurer (Swiss) JV gives them a quality advantage over unorganized local embroiderers.
- Prime Real Estate: Ownership of land in Gurugram provides a massive "hidden" valuation buffer.
- Weaknesses
- Scale Limitations: With a market cap of only ~₹15 Cr, the company lacks the "muscle" to compete for massive global export orders.
- Stagnant Margins: High fixed costs in a single manufacturing unit limit profitability.
- Risk Factors
- When premium yarn costs swing, slim profits feel the squeeze. Because so much depends on one place - Gurugram - a single hiccup in rules or electricity can slow everything down.
- Future Outlook
The pivot toward real estate development of its land bank is the primary catalyst. If ULIL successfully monetizes its Gurugram holdings, it could transition from a textile micro-cap to a mid-sized property player.
6. CONCLUSION
Final Evaluation of Financial Health
Right now, United Leasing sits on shaky ground - more hopeful than strong. Even though profits barely cover costs, it's no longer losing money, which counts for something. Instead of sinking under debt like others in textiles, it carries less weight on its back. That lighter load could mean room to breathe when things shift. Stability isn’t flashy, but here, it matters.
Investment / Performance Perspective
From an investment angle, a different kind of opportunity shows up here - less about expansion, more about hidden worth. People aren’t reaching for ULIL because of thread and fabric, instead they see buildings that hold value beneath the surface. Shifts in how the company operates could spark change later on. Those who wait might face big swings, yet also stand to gain if things tilt their way.
Data Sources
https://www.ulilltd.com/index.php
https://www.screener.in/