Himatsingka Seide Limited, a leading integrated textile company specializing in home textiles, has reported a 10.4% year-over-year decline in quarterly revenue, amounting to INR 661.00 crores. The company's performance reflects the ongoing challenges in the global textile market, particularly due to uncertainties surrounding U.S. tariffs.

Financial Performance and Operational Highlights

The company's EBITDA margin stood at 19.00%, marking a 200 basis point decline quarter-on-quarter. Capacity utilization varied across segments:

Himatsingka Seide's net debt decreased to INR 2,405.00 crores from INR 2,425.00 crores at the end of the previous quarter, indicating the company's ongoing efforts to manage its financial position.

U.S. Tariff Impact and Strategic Response

The proposed additional 25% U.S. tariff has created uncertainties and impacted market sentiment. In response, Himatsingka Seide is actively expanding its global client base across 35 non-U.S. jurisdictions, currently serving over 70 clients. The company aims to reduce its U.S. revenue share from 60% to below 50% within 18-24 months.

Shrikant Himatsingka, Executive Vice Chairman and Managing Director, stated, "We are working round the clock under the circumstances to be able to push and expand our presence in non-U.S. jurisdictions as fast as possible. That's something we are doing, and it's definitely priority number 1 on our agenda."

Domestic Market Focus

Himatsingka Seide operates three brands in India:

1. Himeya
2. Atmosphere
3. Liv

The company is targeting a revenue of INR 800.00-1000.00 crores over the next few years from these brands. It is expanding its presence across various channels, including:

• Multi-brand outlets
• Large-format stores
• Institutional clients
• Private labels
• E-commerce platforms
• Quick commerce platforms

The Himeya brand has a footprint of around 3,500 to 4,000 points of sale, while the company aims to expand its Liv brand to over 10,000-12,000 points of sale.

Future Outlook

Despite current challenges, Himatsingka Seide maintains its EBITDA margin guidance of 18-22%. The company is targeting revenue of approximately INR 4,000.00 crores with high 90s capacity utilization within two years.

Himatsingka also sees opportunities to expand its market presence in the UK following the signing of the FTA between India and the UK, although it will take a few months for these initiatives to materialize.

As the global textile market navigates through uncertain times, Himatsingka Seide remains focused on diversifying its global presence, strengthening its domestic market share, and maintaining operational efficiency to drive long-term growth.

Himatsingka Seide Limited, a prominent player in the textile industry, has reported a decline in its financial performance for the first quarter. The company's consolidated results show a decrease in both revenue and profitability compared to the same period last year.

Revenue and Profitability

The company's consolidated revenue from operations decreased to ₹656.94 crore, down from ₹735.46 crore in the corresponding quarter of the previous year. This represents a decline of 10.67% year-over-year.

Himatsingka Seide's consolidated net profit for the quarter stood at ₹10.90 crore, significantly lower than the ₹20.56 crore reported in the same quarter last year, marking a decrease of 47.00%.

EBITDA and Margin

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decline, falling to ₹120.00 crore from ₹146.00 crore in the previous year's corresponding quarter. Consequently, the EBITDA margin contracted to 18.37% from 19.89% in the prior year period.

Expenses and Financial Costs

Despite the decrease in revenue, Himatsingka Seide managed to reduce its total expenses. The consolidated financial results show total expenses of ₹646.70 crore for the quarter, compared to ₹708.65 crore in the same period last year.

However, finance costs remained significant, with the company reporting ₹72.08 crore for the quarter.

Segment Performance

Himatsingka Seide continues to operate in a single segment, textiles, as per its evaluation of operating segments in accordance with Ind AS 108.

Key Financial Highlights

The financial results indicate challenges in maintaining revenue and profitability levels amidst what appears to be a tough operating environment for the textile sector. As Himatsingka Seide navigates through these challenging times, its ability to manage costs, improve operational efficiency, and potentially explore new growth avenues will be crucial in the coming quarters.