About Avi Ansh Textile Ltd

Incorporated in April 2005, Avi Ansh Textile Limited is a manufacturer and exporter of 100% cotton yarn, including combed and carded cotton yarn in various counts. The company operates spinning factories with a total capacity of 26,000 spindles, producing approximately 4,500 metric tons of cotton yarn annually, ranging from 20s to 40s counts. Avi Ansh Textile Limited has achieved ISO 14001:2015 and ISO 9001:2015 certifications, showcasing its dedication to environmental management and quality assurance. The company operates in both domestic and global markets, manufacturing and supplying a variety of yarns and fabrics to meet customer needs. As of September 2024, the company has 281 employees in various departments.

SWOT Analysis: Avi Ansh Textile Ltd

Strengths:

• Strategic location of manufacturing plant
• Diversified product offerings with a commitment to quality
• Experienced management team with industry expertise
• ISO 14001:2015 and ISO 9001:2015 certifications
• Strong presence in both domestic and international markets

Weaknesses:

• High dependence on cotton as a raw material
• Capital-intensive nature of the textile industry

Opportunities:

• Growing demand for cotton yarn and fabrics in domestic and international markets
• Potential for further expansion into new geographical markets
• Scope for product diversification and value addition

Threats:

• Fluctuations in raw material prices, especially cotton
• Intense competition in the textile industry
• Changes in government policies and regulations affecting the textile sector

Financial Highlights: Avi Ansh Textile Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

Avi Ansh Textile Limited has shown significant growth in recent years. The company's revenue increased by 17%, and profit after tax (PAT) rose by 1053% between the financial year ending on 31st March 2024 and 31st March 2023.
Assets have shown strong growth, increasing from ₹4,336.85 lakhs in FY22 to ₹6,522.64 lakhs in FY24, representing a growth of about 50.4% over two years.

Revenue has seen steady growth, rising from ₹12,016.76 lakhs in FY22 to ₹14,214.65 lakhs in FY24, marking an increase of 18.3% over two years.

The company's profitability has significantly improved, especially in FY24. Profit After Tax increased from ₹155.55 lakhs in FY22 to ₹331.35 lakhs in FY24, representing a growth of 113% over two years. Notably, there was a substantial jump in profitability from FY23 to FY24, with PAT increasing by 1053% in a single year.

Net Worth has shown consistent growth, increasing from ₹1,229.62 lakhs in FY22 to ₹1,587.22 lakhs in FY24, a growth of about 29.1% over two years.

Total Borrowings have increased from ₹2,659.87 lakhs in FY22 to ₹4,481.21 lakhs in FY24, which represents an increase of about 68.5% over two years. This significant increase in borrowings, coupled with growing assets and improved profitability, suggests that the company is investing heavily in expansion or operational improvements.

The company's financial performance shows a trend of steady revenue growth with a remarkable improvement in profitability in the most recent fiscal year. The increase in borrowings, coupled with growing assets and improved profitability, indicates that the company is in an expansionary phase. However, investors should consider the high debt-to-equity ratio and its implications for the company's financial stability.