Mumbai: Mafatlal Industries LTD, a 120 -year -old textile company, closed its losses and less profitable companies, and at the same time focused on the main power to supply uniforms, including government offers to meet turnover after years of indifference.
Over the past five years, the company has concluded its denim division for loss, has abandoned contractual production for overseas retail brands, reduced its workforce through a voluntary pension system and focused on repayment of debts. She also switched to a business model with active light, where most of the textiles he sold was obtained through retailers, the place of her own production. Outsource production was 95% of the company’s highest line in the first quarter of FY26, according to the presentation of investors.
The company also diversified into new business categories, such as the production of sanitary inserts offering digital infrastructure to schools and supplying consumer resistant trains for an economically marginalized part of the company to create its revival.
These measures helped her improve his income and loss of STEM. The company reported income £1,240 crore from operations in the first quarter of FY26, almost triple from a year ago. Profit during the quarter has increased £46 crore, compared to £30 crore a year ago.
In FY25 the company reported income £2 807 crore, sharply from £602 crore in FY21. The profit for the year was £98 crore, compared to loss £94 crore four years before. The stock price in this period increased nearly five times to close £138.8 on BSE on Thursday.
“During each of the last five years we have grown between 30-50%,” said Priyavrata Mafatlal, part of the fifth generation of promoter Mafatlal family.
The company has found itself in the financial crisis around the turn of the last decade. At that time, Scion took over the fifth generation as the CEO and CEO of the company.
“On the morning of December 17, 2018 I was appointed by the CEO of MAFATAL Industries Limited, a company that drowned at that time at losses – £180 Crore, more precisely, ”wrote a 38 -year -old man on the professional network platform LinkedIn last year.
“The advice was looking for” Young Blood “to turn things around … and they chose me. My first thought was,” There’s a link to four generations in front of me … Will I drive it all into the ground? “, He wrote.
Just as the ship stabilized, the Covid-19 pandemic hit. However, the resulting closure of the factory and other challenges also provided companies to reconsider their strategy and help plan a turnover plan. As soon as the turnover plan began to bring the results, Mafatlal gave up the position of the CEO in March 2022 to continue as the CEO.
While the turnover strategy clicked, the company has a long way. This directly lags its peers in the textile industry. Its peers of a similar year to ArvinD Limited and Raymond Lifestyle Ltd have several times higher income.
The focus of Mafatla Industries on uniforms and affordable products also means lower margins, with EBITDA (income before interest, taxes, depreciation and amortization) margins less than 4% compared to more than 10% for its two larger peers.
These weaknesses show in the valuation of the company. Has a market capitalization fair £1 000, Crore despite a sharp increase in stock prices over the past five years. This is compared to £7,500 Crore for ArvinD Limited A £6 900 Crore for Raymond Lifestyle Ltd.
Even though Mafatla Industries is recovering, the list of chemicals Maker Nocil LTD, also part of the ArvinD Mafatlal group, finds itself in the disappearance in Downcycle. The producer of the rubber chemicals was overcome by imports from China and South Korea, said Priyavrata Mafatlal, who is the director of the Board of Directors.
The company examines expansion to other organic chemicals and other chemicals for a larger automotive sector to diversify its business. However, there is no hurry to decide, because this industry tends to be cyclical and was part of the weather in the weather Downcycles, Mafatlal said. “This is the time in the trenches for us. We will weigh the storm.”
(Tagstotranslate) Mafatlal Industries Ltd (T) 120-year-old textile company (T) supplying uniforms
