The Management Discussion and Analysis Report provides an overview industry trends, opportunities, challenges, and the future outlook. It aims to offer stakeholders a clear
ECONOMIC AND INDUSTRY OVERVIEW
GLOBAL ECONOMY
The global economy is moderating, with growth expected to slow in 2025. This reflects ongoing trade tensions, heightened policy uncertainty, and subdued demand that are weighing on global activity. Forecast global growth for 2025 is expected to weaken to approximately 2.3%, marking one of the slowest growth rates outside recession year. Growth in low-income countries is expected to reach around 5.3%, though this is contingent on easing inflation and conflict risk. Key drivers of this slowdown include restrictive trade barriers, elevated debt levels, and persistent policy uncertainties across regions. (Source: Global Economic Prospectus -2024 June)
INDIAN ECONOMY
The Economic Survey 2024-25 reflects robust macroeconomic fundamentals, with sustained growth across key sectors, improving investment dynamics, and manageable inflationary pressures. The resilience of consumption, especially rural-driven, and a strong external sector further bolster the outlook. While growth projections suggest a mild moderation in FY 2025-26, the breadth of reforms, improved infrastructure investments, and financial sector stability set a foundational framework for medium-term economic acceleration and structural resilience.
India 6.4% in FY 2024-25, aligning closely with the decade-long average. Real GDP growth for FY 2025-26 is projected in the range of 6.3% to 6.8%, reflecting moderately optimistic but cautious expectations.
Overall exports grew by 6.0% YoY during April December 2024. Services exports surged by 12.8% in April November FY25, up from 5.7% in FY24. Foreign exchange reserves stood at approximately USD 640.3 billion as of December 2024 sufficient to cover nearly 10.9 months of imports and about 90% of external debt obligations. (Source: Ministry of Finance Economic Survey 2024-25)
INDUSTRY STRUCTURE
GLOBAL TEXTILE INDUSTRY
The global textile and apparel industry is steadily regaining momentum post-pandemic, underpinned by evolving consumer preferences, sustainability imperatives, and supply chain diversification.
The global market was valued at USD 1.83 trillion in 2023 and is projected to reach USD 2.37 trillion by 2030, growing at a CAGR of ~8%. Adoption of automation, AI, blockchain, and digital printing is improving productivity and traceability across the value chain. Sustainability remains a central theme, with retailers prioritizing suppliers based on ESG scores and low-carbon practices. Asia-Pacific continues to be the largest growth driver, while European demand is expected to accelerate in the medium term. Global buyers are consciously diversifying sourcing beyond China, positioning India, Vietnam, and Bangladesh as competitive alternatives.
INDIAN TEXTILES INDUSTRY
The Indian textile and apparel market is expected to grow at a 10% CAGR to USD 350 billion by 2030. Exports are projected to reach USD 100 billion, making India the third-largest exporter globally. The sector contributes ~2.3% to GDP, 13% to industrial production, and 12% to exports. Technical textiles represent a significant growth frontier, with the market projected to expand at ~10% annually.
Government schemes such as PM MITRA Parks, PLI for MMF & technical textiles, Kasturi Cotton Bharat, and the National Technical Textile Mission are accelerating modernization, capacity building, and branding of Indian textiles globally.(Source: IBEF & Ministry of Textiles)
COMPANY OVERVIEW & ROLE
Super Fine Knitters Limited operates in the knitted fabric and garment segment, which remains competitive yet workforce, and government initiatives such as PLI schemes, GST rationalisation, and export incentives. The company has a laboratory which is fully equipped for tests and fabric dyeing houses under contract. The fabrics range from 100% cotton to cotton Lycra, mercerized to plain and washed to over dyed and other blended fabrics.The outlook for the textile industry remains positive in the medium to long term, supported by strong domestic consumption, rising exports, and increasing demand for sustainable and quality fabrics. The Company aims to strengthen its presence in markets through product diversification, capacity enhancement, and customer-focused strategies.
FINANCIAL ANALYSIS (ON STANDALONE BASIS):
Revenue Break up: (INR. in lakh)
Particulars |
2024-25 | % to Total Income | 2023-24 | % to Total Income |
Revenue |
2817.94 | 98.43 | 2798.62 | 97.85 |
Other Income |
44.96 | 1.57 | 61.37 | 2.15 |
Total Turnover |
2862.90 | 100 | 2859.998 | 100 |
Profitability/Losses: (INR. in lakh)
Particulars |
2023-24 | 2023-24 |
Profit/losses before depreciation and tax |
186.11 | 184.18 |
Depreciation |
94.90 | 93.46 |
Profit/losses before tax |
91.21 | 90.72 |
Tax (Previous year) |
23.73 | 32.85 |
Profit/losses after Tax |
67.48 | 57.87 |
OPPORTUNITIES & RISKS
Opportunities
Supply Chain Diversification: Buyers shifting away from China present significant sourcing opportunities for India. FTA Prospects: Progress on FTAs with the UK, EU, Oman, and Eurasian Economic Union could expand market access and competitiveness.
Sustainability Premium: -friendly fabrics, and traceable supply chains strengthens export potential. Government Incentives: PLI and PM MITRA schemes will enhance infrastructure, create integrated textile hubs, and promote MMF and technical textile manufacturing. Growing Domestic Demand: Rising middle-class consumption and e-commerce penetration are driving domestic apparel growth.
Threats:
Volatility in raw material prices (cotton, yarn, dyes). Intense domestic and international competition. Global economic uncertainties and changing trade policies. Rising labour and compliance costs.
Risks & Challenges
Global Economic Slowdown: Geopolitical tensions, inflation, and sluggish global trade could dampen export demand. Input Cost Volatility: Fluctuations in raw material prices, especially cotton and energy, impact margins. Competitive Pressure: Aggressive pricing and policy support in Bangladesh, Vietnam, and other low-cost
Regulatory & ESG Compliance: Meeting evolving ESG, traceability, and labor compliance norms of global retailers adds cost and operational challenges. Currency Fluctuations: Exchange rate volatility directly affects export competitiveness.
STRATEGIC OUTLOOK
Super Fine Knitters Limited aims to enhance competitiveness through digitalization and process automation. Focus on high-margin niche products and sustainable fabrics. Strengthen global reach by aligning with ESG-focused international retailers. Maintain financial prudence while pursuing growth opportunities under government-backed textile reforms.
ADEQUACY OF INTERNAL CONTROL SYSTEMS
The Company has established a robust internal control framework designed to ensure: Accuracy and reliability of financial reporting. Compliance with applicable laws, regulations, and internal policies. Safeguarding of assets against unauthorized use or losses. Efficient operations through standardized processes and accountability.
These controls are reviewed periodically by management, and any deviations are promptly addressed. An independent Internal Audit team, reporting directly to the Audit Committee of the Board, evaluates the adequacy and effectiveness of internal controls across various functions. The Audit Committee regularly reviews audit findings and monitors the implementation of recommendations. This process ensures a culture of continuous improvement and strengthens the governance framework. The Company also leveragestechnology-enabled monitoring tools and automation in processes to enhance transparency, reduce operational risks, and improve overall efficiency.
SIGNIFICANT KEY FINANCIAL RATIOS
S.No. Particulars |
FY 2024-25 | FY 2023-24 |
1 Current Ratio (in Times) |
8.13 | 4.20 |
2 Debt-Equity Ratio (in Times) |
0.49 | 0.36 |
3 Return on Equity Ratio (in %) |
2.81% | 2.49% |
4 Trade Receivable turnover Ratio (In Times) |
8.79 | 4.18 |
5 Net Capital Turnover Ratio (In Times) |
1.13 | 1.24 |
6 Net Profit Ratio (In %) |
3.24 | 3.24 |
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS:
engaged workforce is its greatest asset. The Company provides continuous learning and d evelopment opportunities, focusing on technical skills, leadership, and cross-functional capabilities.Regular training programs are conducted to upgrade skills in line with evolving market demands, sustainability practices, and digital transformation initiatives. Performance management systems are aligned with organizational objectives to drive accountability and recognize merit.Employee welfare initiatives, health and safety measures, and an inclusive work environment are core to HR policies.
Industrial relations during the year remained harmonious and cordial. The Company has successfully nurtured a culture of collaboration, transparency, and respect, which has contributed to sustained productivity and low attrition. The management acknowledges and appreciates the dedication, commitment, and contribution of its employees towards the sustained growth of the Company.
CAUTIONARY STATEMENT
-looking stateme securities laws and regulations. These statements are based on certain assumptions and expectations of future events over which the Company exercises limited or no control. The Company cannot guarantee that these assumptions are accurate or will be realized. Actual results, performance, or achievements could differ materially from those expressed or implied due to, among other factors:
changes in global and domestic economic conditions, fluctuations in raw material prices, regulatory developments, competitive pressures, technological changes, and other unforeseen circumstances.
The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements on the basis of subsequent developments, information, or events, except as required under applicable laws.
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