January 2025 – Banswara Syntex Limited has reported strong financial results for the third quarter of FY25, registering an 11.5% year-on-year (YoY) increase in total income to ₹341 crore, driven primarily by a 32% YoY growth in the fabric segment. EBITDA surged 23.4% YoY to ₹36.5 crore, with margins improving from 9.7% in Q3FY24 to 10.7% in Q3FY25.
Key Financial Highlights (Q3FY25)
| Financial Metric | Q3FY25 | Q3FY24 | YoY Growth |
|---|---|---|---|
| Total Income | ₹341.0 Cr | ₹305.8 Cr | 11.5% |
| EBITDA | ₹36.5 Cr | ₹29.5 Cr | 23.4% |
| PBDT | ₹25.6 Cr | N/A | N/A |
| PAT | ₹10.2 Cr | ₹8.5 Cr | 18.9% |
| EBITDA Margin | 10.7% | 9.7% | +100 bps |
| PAT Margin | 3.0% | 2.8% | +20 bps |
Segment-Wise Performance
Yarn Segment
- Revenue declined 5% year over year to ₹113 crore, impacted by an 8% year-over-year drop in sales volume to 51 lakh kgs.
- The segment faced pricing pressure and sluggish demand, although sequential demand has improved slightly.
Fabric Segment – The Standout Performer
- Revenue surged 32% YoY to ₹151 crore, driven by a 47% YoY increase in sales volume to 61 lakh meters.
- The premium Simone Frederico & Figli brand gained traction, contributing to growth.
- Export demand from Australia, Europe, and Mexico remained strong.
Garment Segment
- Revenue increased 8% YoY to ₹70 crore, with sales volume showing a marginal uptick to 9 lakh pieces.
- Production of jackets saw an increase, while trousers remained stable.
- The company announced plans to exit the SEZ scheme at its Surat unit to optimize capacity utilization and serve domestic and international markets.
Operational Updates
- Exports rose 7% QoQ and 21% YoY, reaching ₹148 crore in Q3FY25.
- Garment exports gained traction in Hong Kong, the UK, and other key markets.
- Due to challenges in the commodity yarn segment, the company continued its strategic shift toward specialized yarn sales.
Management Commentary
Ravindra Kumar Toshniwal, Managing Director, highlighted the strong performance in the fabric segment, attributing it to increased production and export growth. He also emphasized:- The shift to specialized yarn to combat pricing pressure.
- Increased order flow in the garment division, with a rising jacket demand.
- The positive impact of global supply chain shifts, mainly due to challenges faced by Bangladesh's textile industry, boosting India's competitiveness.
Strategic Outlook
- China+1 Strategy: Banswara Syntex is capitalizing on the shift in global supply chains, which favors India as a key textile hub.
- Operational Efficiency: Plans to increase value-added product offerings while optimizing costs.
- Expansion into High-Value Fabrics: The company focuses on technical and premium fabrics to improve margins.