Banswara Syntex Limited , a leading textile manufacturer, has reported a mixed set of results for the first quarter. The company saw a 12.7% year-on-year increase in total income, reaching INR309.60 crores, driven by strong performance across its business segments, particularly in garments.

Financial Highlights

• Total income: INR309.60 crores (up 12.7% YoY)
• EBITDA: INR21.90 crores (marginal increase)
• Net Loss: INR1.40 crores

Segment Performance

Garment Division

• Revenue: INR75.00 crores (up 42% YoY)
• Capacity utilization: 78% (up 29% YoY)

Fabric Division

• Revenue: INR117.00 crores (up 4% YoY)
• Capacity utilization: 70%
• Sales volume: Approximately 50 lakh meters

Yarn Division

• Revenue: 10% increase YoY
• Sales volume: 51 lakh kgs (up 13% YoY)
• Capacity utilization: 70%

Key Insights

1. Garment Division Leads Growth: The garment segment emerged as the star performer, with a substantial 42% year-on-year revenue growth and improved capacity utilization.

2. Operational Challenges: The company faced temporary labor shortages in the yarn division, leading to reduced capacity utilization and impacting overall profitability.

3. Export Market Dynamics: Banswara Syntex is adapting to changing global trade dynamics, including recent U.S. tariffs. The company's strategy involves leveraging its supply chain flexibility, with nearly 90% of its U.S.-linked business based on fabric routed through tariff-friendly countries.

4. Domestic Market Opportunities: The company sees significant growth potential in the domestic market, particularly in replacing Chinese imports of manmade synthetic fabrics.

5. UK-India Free Trade Agreement: Banswara Syntex anticipates benefits from the recently concluded India-UK free trade agreement, which is expected to boost the competitiveness of Indian textiles in the UK market.

6. Future Outlook: Despite current challenges, the company maintains its targets of INR1,550.00 crores in revenue and 12% EBITDA for the full year. Management expects sequential improvement in the coming quarters.

7. Capex Plans: The company has outlined a capital expenditure plan of INR100.00 crores for the current year, focusing on infrastructure improvements and modernization across its divisions.

Ravindrakumar Toshniwal, Vice Chairman of Banswara Syntex Limited, commented on the results, stating, "Despite facing some headwinds in the first quarter, we remain optimistic about growth across all three of our business verticals. Our focus is on improving capacity utilization and increasing sales, which we believe will help us navigate current challenges and emerge stronger."

The company's management expressed confidence in leveraging its vertically integrated structure and product strengths to capitalize on both domestic and international growth opportunities, particularly in the UK and European markets.

As Banswara Syntex continues to adapt to the evolving textile industry landscape, investors will be watching closely to see if the company can achieve its ambitious targets for the fiscal year and successfully navigate the complex global trade environment.

Banswara Syntex , a leading textile manufacturer, has reported a 12.7% year-on-year growth in total income for the first quarter, despite facing operational challenges. The company's financial results, released on August 6, highlight mixed performance across its divisions, with the garment segment emerging as a standout performer.

Financial Highlights

• Total income rose to Rs 309.60 crore, up from Rs 274.70 crore in the same period last year
• EBITDA stood at Rs 21.90 crore, with a margin of 7.1%
• The company reported a net loss of Rs 1.40 crore, attributed to unforeseen operational challenges

Divisional Performance

Yarn Division

• Revenue increased by 10% year-on-year to Rs 110.00 crore
• Sales volume grew by 13% to 51 lakh kgs
• Capacity utilization remained below optimal due to labor shortages

Fabric Division

• Revenue grew modestly by 4% to Rs 117.00 crore
• Sales volume remained flat at 50 lakh meters
• Capacity utilization held steady at 70%

Garment Division

• Emerged as the strongest performer with 42% revenue growth to Rs 75.00 crore
• Sales volume increased by 29% year-on-year
• Capacity utilization improved significantly to 78%

Management Commentary

Ravindra Kumar Toshniwal, Vice-Chairman of Banswara Syntex, commented on the results: "The first quarter began on a steady note for the textile industry. While policy moves like the India-UK Free Trade Agreement offer long-term promise, demand trends remained uneven in the near term."

He added, "Looking ahead, we remain committed to improving operational efficiency through better utilization levels and increased focus on value-added products. We believe that ongoing progress on the UK Free Trade Agreement could enhance our ability to tap into export markets more competitively."

Outlook

The company expects gradual normalization in the coming quarters, supported by:

• Better order visibility and improved customer engagement
• Seasonal demand from festivals and winter
• Gradual build-up of export momentum
• Focused outreach in key regions and closer customer engagement

Banswara Syntex is also exploring new opportunities in markets like Europe, particularly in Italy and France.

Corporate Updates

The Board of Directors approved changes in the designations of key executives:

• Mr. Ravindrakumar Toshniwal's designation changed from Managing Director to Vice-Chairman, effective August 7
• Mr. Shaleen Toshniwal's designation changed from Joint Managing Director to Managing Director, effective the same date

These changes are subject to shareholder approval through a postal ballot.

Despite the challenges faced in the first quarter, Banswara Syntex remains optimistic about its future prospects, particularly in the export markets and with its focus on value-added products across its divisions.