Performance analysis of India's top spinning companies

Filatex India

One of the top manufacturers of polyester filament yarn and polypropylene filament yarn, Filatex India, with a market cap of approximately ₹1,968.06 crore, has exhibited a commendable financial trajectory. Starting from a revenue of ₹2,874.10 crore in FY19, there was a slight decline in FY20 to ₹2,782.07 crore, followed by a sharp dip in FY21 to ₹2,227.15 crore but rebounding strongly in the succeeding years to ₹3,828.09 crore in FY22 and ₹4,303.87 crore in FY23.

The net profit bottomed at ₹84.85 crore in FY19, then went significantly up to ₹121.48 crore in FY20, and later edged up to ₹165.83 crore in FY21. The net profit peaked at ₹302.73 crore in FY22 and went considerably down to ₹89.90 crore in FY23. The EPS was ₹3.90, ₹5.53, ₹7.51, ₹13.53, and ₹2.02 in FY19, FY20, FY21, FY22, FY23, respectively.

Filatex’s market share ascended from 1.55 per cent to 2.73 per cent, indicative of its strengthened position in the market. Moreover, the debt-to-equity ratio over the last five years was 76.94 per cent compared to the industry average of 247.62 per cent.

In the last five years, Filatex India’s stock has given significant returns of approximately 78.08 per cent to its investors.

Trident Group

Diversified textile fabric manufacturer Trident Group, with a substantial market cap of approximately ₹19,344.25 crore, has navigated through the past five years with mixed revenue outcomes. In FY19, the company secured ₹5,219.52 crore which fell in FY20 to ₹4,699.46 crore and in FY21 to ₹4,519.29 crore. The years FY22 and FY23 brought a steady recovery with revenues of ₹6,919.18 crore and ₹6,267.47 crore respectively.

Net profit, on the other hand, experienced fluctuations reaching ₹370.92 crore in FY19 and dipping to ₹341.80 crore in FY20, followed by a substantial figure of ₹345.74 crore in FY21, and then a significant increase to ₹814.95 crore in FY22 before falling to ₹421.90 crore in FY23. The company’s earnings per share (EPS) were also unstable, amounting to ₹7.28 in FY19, ₹0.67 in FY20, ₹0.68 in FY21, ₹1.63 in FY22, and ₹0.84 in FY23.

Over the last 5 years, Trident’s market share increased from 3.68 per cent to 4.02 per cent, while the debt-to-equity ratio has been approximately 54.14 per cent compared to the industry average of 247.62 per cent.

In the last five years, the company’s stock has given spectacular returns of approximately 496.09 per cent to its investors.

Nitin Spinners

Nitin Spinners, a leading manufacturer of cotton yarn and knitted fabric, registered a market cap of approximately ₹1,593.27 crore, marking its journey through considerable revenue fluctuations over the five years: starting at ₹1,242.51 crore in FY19, seeing a dip in FY20 to ₹1,438.06 crore, a further decrease in FY21 to ₹1,624.41 crore but rallying remarkably in the subsequent years reaching ₹2,692.32 crore in FY22 and ₹2,406.71 crore in FY23.

In FY19, the company garnered a net profit of ₹64.11 crore, which drastically dropped to ₹23.82 crore in FY20. A recovery was observed in FY21, with profit rising to ₹68.87 crore. A significant leap occurred in FY22, recording a net profit of ₹326.14 crore. However, FY23 saw a reduction in profit, settling at ₹164.81 crore.

The EPS experienced significant volatility, amounting to ₹11.43, ₹4.24, ₹12.25, ₹58.01, ₹29.32 in FY19, FY20, FY21, FY22, FY23, respectively. Despite these fluctuations, the company improved its market share from 0.91 per cent to 1.52 per cent over the period of last five years.

In the last five years, Nitin Spinners’ stock gave approximately 238.62 per cent returns to its investors.

Nahar Spinning Mills

Nahar Spinning Mills, a company engaged in the manufacture and export of woollen textiles, woollen/cotton hosiery, and knitwear, manoeuvred through the past five years with a series of ups and downs in revenue, initiating with ₹2,305.20 crore in FY19, slightly falling in FY20 to ₹2,082.70 crore, seeing a further dip in FY21 to ₹2,111.87 crore but bouncing back robustly in the subsequent years with ₹3,593.86 crore in FY22 and ₹2,796.91 crore in FY23.

The net profit in FY19 was ₹65.73 crore, then it dipped to a negative of ₹53.06 crore in FY20 but recovered well to 41.42 crore in FY21. Net profit skyrocketed to ₹502.19 crore in FY22, followed by ₹110.79 crore in FY23. The EPS too saw dramatic fluctuations, from ₹18.22 in FY19 to minus ₹14.41 in FY20 to ₹11.33 in FY21, then reaching a significant ₹139.50 in FY22. In FY23, the company’s EPS dipped again to ₹32.24.

Despite the tumultuous journey, Nahar’s market share slightly increased from 1.71 per cent to 1.8 per cent.

The company gave approximately 208.15 per cent returns to its investors in the last five years.

Fibre2Fashion News Desk (DP)