ICRA-Indian Spinning Industry-October 2014

Indian Spinning Industry
ICRA RESEARCH SERVICES
Corporate Ratings
ICRA RATING FEATURE
Rohit Inamdar
+91 124 4545 847
rohit.inamdar@icraindia.com
Pratik Singhania
+91 124 4545 801
pratik.singhania@icraindia.com
Anil Gupta
+91 124 4545314
anilg@icraindia.com
Amit Arora
+91 124 4545 318
amita@icraindia.com
October 2014
Ability to mantain capacity utilization and contribtion margin to be a challenge for the
spinning industry amid declining yarn exports
ICRA LIMITED
Page |1
Index
A.
Global Cotton Scenario Cotton production expected to remain higher than consumption in CY 2014/15, increasing the global stock levels to all time high...7
World cotton balance sheet
World cotton stock to use ratio vs. Cotlook A Index
China cotton balance sheet
World less China cotton balance sheet
B.
Trend in International Cotton Prices - Expected increase in global cotton availability has resulted in sharp decline in international cotton prices..9
C.
Domestic Cotton Scenario Domestic cotton stock position to improve in CY 2014/15 due to decline in exports ....10
Indias cotton balance sheet and estimate for CY 2014/15
India's yearly cotton and cotton equivalent yarn export
Indias monthly cotton consumption and export
D.
Outlook on International Cotton Prices- Cotton prices to soften further due to increase in global availability of cotton in CY 2014/15....11
Cotton prices in India and China vs Cotlook A index
E.
Outlook on Domestic Cotton Prices- Domestic prices also expected to decline to align with international prices.12
Trend in India's cotton prices
Cotton stock with mills and equivalent days of consumption
F.
Domestic Yarn Scenario: Capacity utilization of the industry to remain under pressure in FY 2014-15 due to expected decline in demand from China...13
Monthly yarn production, capacity utilization and inventory levels
Monthly yarn exports
Spread between cotton and PSF prices and share of cotton yarn production in total spun yarn production
G.
Outlook on Margins: While the profitability margins were stable in Q1 FY 2014-15, they are expected to moderate going forward....15
Cotton yarn prices in India, China and Pakistan
Cotton yarn spread in India, China and Pakistan
Trend in India's contribution margin in rupee and USD terms
H.
I.
Outlook on Indian spinning industry: Stable to Negative for FY 2014-15 ....17

Financial performance of listed Indian spinners and outlook for FY 2014-15.....18
Annexure 1: Rating Distribution - ICRA rated Entities Upgrades in 5M FY 2014-15 continue to outpace the downgrades ...19
Annexure 2: RR-TUFS: Investment in standalone spinning projects remain subdued ... 20
ICRA LIMITED
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Company Section....21
Ambika Cotton Mills Limited.......22
Bannari Amman Spinning Mills Limited..23
Banswara Syntex Limited..24
Damodar Industries Limited...25
Deepak Spinners Limited .26
Ginni Filaments Limited..27
GTN Industries Limited28
K.P.R. Mill Limited.29
Maharaja Shree Umaid Mills Limited...30
Maral Overseas Limited..31
Nahar Industrial Enterprises Limited.32
Nahar Spinning Mills Limited..33
Nitin Spinners Limited....34
Precot Meridian Limited.35
Rajapalayam Mills Limited...36
RSWM Limited........37
Supreme Tex Mart Limited .38
Super Spinning Mills Limited..39
Sutlej Textiles And Industries Limited .40
Trident Limited.41
TT Limited....42
Vardhman Polytex Limited .43
Vardhman Textiles Limited .44
Winsome Textiles Industries Limited.45
Winsome Yarns Limited..46
ICRA LIMITED
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INDIAN SPINNING INDUSTRY

October 2014
Summary Highlights and Outlook

COTTON STOCK POSITION
1
As global cotton supply outpaces demand, addition to stocks expected to continue for fifth consecutive year leading to all time high stocks at the end of CY 2014/15; India to emerge as
the worlds largest cotton producer
The global cotton production in CY 2014/15 is expected to remain flat despite a decline in Chinas cotton production as the decline is expected to be offset by an expected increase in
the cotton production in USA. The total cotton production is expected at ~151.1 million bales in CY 2014/15 as against 152.2 million bales in CY2013/14
With expected decline in Chinas cotton production, India is expected to emerge as the largest producer of the cotton in the world with ~25% share in worlds cotton production
The consumption will continue to be driven by China and India and is expected to increase by 3.8% to reach 143.6 million bales; however the consumption would still continue to be
lower than the production which would increase the global stock levels for the fifth consecutive year and reach all time high by end of CY 2014/15, which will be equivalent to ~95% of
annual consumption
Cotton consumption in China to increase due to availability of cotton at market rates from CY 2014/15 which would also limit the imports; imports will only be to meet the shortfall in
production vis--vis consumption
2
The shift towards the direct subsidy policy from CY 2014/15 would make the domestic cotton available to mills in China at market rates which would increase the cotton consumption
in China which had been declining over the last four years
As the production is expected to continue to remain lower than consumption for CY 2014/15, China would continue to import cotton, though it would be limited to meet only the
shortfall vis--vis consumption. However, if the cotton reserves are liquidated by China, the need for cotton imports would be obviated
Due to limited imports, increase in the cotton stock at the end of the CY 2014/15 is expected to be modest unlike that in the past three years
Decline in cotton imports by China to reduce the exports from India, which would significantly increase the cotton stock position in India compared to the previous years
3
Due to reduction in demand from China, the raw cotton exports from India are expected to reduce significantly in CY 2014/15
The cotton production in India in CY 2014/15 is expected to decline modestly due to the late onset of monsoons which is expected to reduce the crop yield, though the decline would
be limited due to higher acreage compared to last year
The domestic consumption of cotton during CY 2014/15 is expected to remain similar to CY 2013/14 as we expect the yarn production levels are unlikely to increase despite growth in
domestic demand as yarn exports are expected to decline. Stable cotton production levels, decline in cotton exports and limited drivers for increase in cotton consumption would
significantly increase the stock position in India compared to that witnessed over the last five cotton seasons, thereby improving raw material availability for the mills
2
3
Refers to International Cotton Year, which commences from August and ends in July
Prior to CY2014/15, Chinese government was procuring cotton directly from farmers at fixed support prices, leading to accumulation of stock with Chinese Government
Refers to Indian Cotton Year, which commences from October and ends in September
ICRA LIMITED
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OUTLOOK ON COTTON PRICES

International cotton prices have declined since announcement by China to terminate its three year old cotton stocking policy and are expected to remain soft on account of increase in
global cotton availability in CY 2014/15
As ICRA Research had noted in this previous note, due to changes in Chinas cotton policy, the international cotton prices have declined since April 2014 after China announced to
terminate its three year old cotton stocking policy. The policy changes would increase Chinas own cotton consumption and reduce the import demand
As the demand from China had resulted in low global stock levels outside China, the global cotton prices remained firm over the last three cotton seasons; however reduction in import
demand from China would increase the global cotton stock levels outside China, thereby putting pressure on international cotton prices
The international cotton prices have already declined by ~24% till August 2014 from that in March 2014 and the December future prices are prevailing further lower by ~9% from
current levels. With the arrival of new crop from October 2014 onwards, the international cotton prices are expected to decline further and may align with the prevailing futures price
The international cotton prices continue to remain sensitive to further changes in Chinas policy, i.e. on release of its cotton reserves, as it would influence the import requirement of
China and thereby the global stock levels outside China and also the prices
Domestic prices are also expected to decline in CY 2014/15 and align with the international prices
Though the international cotton prices had declined since April 2014, the domestic cotton prices had remained firm and had in fact increased till May 2014 on account of tight
domestic stock position due to high levels of cotton and cotton equivalent yarn export in CY 2013/14
While approaching to the new cotton season, revival of monsoons from late July/August 2014 and cautious approach being adopted by players in the textile value chain, the domestic
prices had also been declining since June 2014
With the arrival of new crop, the domestic prices are expected to decline further as it converges with the international cotton prices, given the limited trade restrictions on cotton
import/export and also due to the expectation of increase in the domestic cotton stock levels at the end of CY 2014/15
Domestic cotton prices were already below the Minimum Support Price (MSP) in August 2014 and with expectation of further decline in the prices, the possibility of significant MSP
operations by the government during the CY 2014/15 is fairly high
DOMESTIC YARN SCENARIO
Capacity utilization of the Indian spinning industry is likely to remain under pressure in FY 2014-15 due to expected reduced export demand
The domestic cotton yarn production remained steady in Q1 FY 2014-15 with production increasing by 4.5% over the same period last year
Increase in yarn production and thereby of the capacity utilization of the Indian spinning industry over the last two years was driven by export demand led by China
Due to expected decline in the demand from China, the demand for Indian yarn is likely to decline and may pose pressure on capacity utilization levels which may result in decline in
yarn production during the year unless supported by increase in domestic demand
With reduced export demand and steady growth in the production, the domestic inventory levels for cotton yarn had increased in Q1 FY 2014-15
Margins were stable in Q1 FY 2014-15 compared to that in Q4 FY 2013-14; however expected to decline in Q2 FY 2014-15; subsequently the profitability to remain under pressure due to
expected decline in capacity utilization levels
The average export price of yarn for Indian spinners during 5M FY 2014-15 had been lower by ~5.8% compared to the same period last year in USD terms; however due to rupee
depreciation, the domestic yarn prices in rupee terms had been at similar levels
ICRA LIMITED
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The yarn prices have however started declining from August 2014 in rupee as well as USD terms on account of decline in cotton prices and with the expectation of lower cotton prices
in CY 2014/15 and are expected to decline further from the current levels
The contribution margin for the Indian spinners during 5M FY 2014-15 remains lower compared to that over the corresponding period last year due to limited increase in yarn prices
and higher cotton prices during CY 2013-14. The average contribution margin for yarn export during this period was ~USD 1.37/Kg which is lower by ~11.2% over the previous
corresponding period; while the spread for domestic sales was ~Rs. 82/Kg, which was lower by ~4.4%
The EBDITA margin in Q1 FY 2014-15 had been similar to that in Q4 FY 2013-14 at ~15% as the yarn prices were flat during this period and the cotton procurement cost for the mills
remained at similar levels as that in Q4 FY 2013-14
The EBDITA margins of the Indian spinners is however likely to moderate in Q2 FY 2014-15 to ~12% as the yarn prices have declined from August 2014; the extent of impact on
profitability will depend on the quantum of cotton stock and carrying cost held by the mill
Subsequently, from Q3 FY 2014-15 onwards, while the decline in cotton prices is expected to be beneficial for the industry, however reduced export demand will pose pressure on the
capacity utilization levels of the Indian spinners. With expected pressures on capacity utilization, the contribution margins for the mills are also expected to come under pressure, which
would result in downward pressure on the profitability in H2 FY 2014-15
OUTLOOOK ON THE INDIAN SPINNING INDUSTRY
Outlook on the Indian spinning industry is stable with possible downside risk on account of expected reduction in export demand for yarn; Indian spinners to however benefit from lower
cotton cost which shall reduce their funding requirements
The outlook on the Indian cotton spinning industry is stable with possible downside risk on account of risk emanating from changes in Chinas cotton policy for CY 2014/15
The yarn export from India which had increased to ~33% of the total production in FY 2013-14 due to strong demand from China, is expected to be impacted in FY 2014-15. As a result,
the ability of industry to maintain high capacity utilization as well as contribution levels in a declining demand scenario would be a challenge
However, on the positive side, the decline in the domestic cotton prices in CY 2014/15 will reduce the input cost for the industry as well as inventory funding requirements apart from
possible improvement in domestic demand for cotton yarn on account of increased competitiveness as compared to synthetic fibers
Moreover, given the uncertainty on the Chinas policy on liquidation of its huge cotton stock and expectations of sufficient availability of cotton in upcoming season, the mills are
expected to be cautious while stocking cotton during CY 2014/15 to avoid any inventory loss.
Import duty on cotton and cotton yarn in China to remain a key determinant of cotton yarn exports from India
While the cotton consumption in China is likely to increase in CY 2014/15, given its sizeable requirement of cotton yarn, it would continue to meet its requirement either through
cotton and/or cotton yarn imports
If the state reserve of cotton stock is not liquidated, continued duty free import of yarn and/or sustained import duty on cotton imports will be key determinants for ensuring that the
demand for yarn is met through import of yarn, rather than import of cotton
Reduced import duty on cotton and/or levy of import duty on yarn, can partially shift the Chinese demand to cotton from cotton yarn as was the case prior to CY 2011/12
ICRA LIMITED
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Global Cotton Scenario Global cotton stock levels expected to reach all time high at the end of CY 2014/15, higher than the initial estimate, though the increase in stock levels would be
the lowest compared to that witnessed over the last three years
The global closing cotton stock level for the cotton year ending July 2014 (CY 2013/14) is expected to be higher by ~2% compared to
the previous estimate and reach all time high of ~128.5 million bales which would be equivalent to stock to consumption ratio of 93%
at the end of CY 2013/14 compared to the previous estimate of ~89%. The revision in the global closing stock level for CY 2013/14 is
on account of increase in the production estimate, mainly of India, and decrease in global cotton consumption, mainly in China. For
the CY 2014/15, the global closing cotton stock level is expected to increase for the fifth consecutive year, similar to what was
estimated earlier. While the production is expected to decline by ~0.6% and consumption to increase by ~3.8% in CY 2014/15, the
production would still remain higher than consumption, which would result in increase in global cotton stock levels, whereby the
closing stock is expected to reach all time high of ~136.1 million bales by the end of CY 2014/15.
However, the built up in global cotton stock levels had been reducing over the last three years due to decline in cotton production and
increase in consumption; and the increase in the stock levels in CY 2014/15 would be the lowest compared to that witnessed over the
past three years. While the decline in cotton production in CY 2014/15 is expected to be driven by top two cotton producing
countries, China and India; the extent of decline will be partially offset by the expected increase in cotton production in the third
largest producer, USA, which would keep the decline in total cotton production modest at ~0.6% to ~151.1 million bales. The cotton
production estimate for CY 2014/15 is however higher by ~2% from the previous estimate on account of expected increase in
production in India due to revival of the monsoons from late July/August 2014 and also increase in production in USA which is due to
increase in acreage and improved weather conditions. The increase in the global cotton consumption in CY 2014/15 is expected to be
driven by top two consuming countries, China and India, and is expected to reach 143.6 million bales, which is in line with the earlier
estimate.
The decline in cotton production in China is expected on account of decline in acreage in regions other than Xinjiang (Xinjiang region
accounts for ~50~55% of total cotton production in China) as there was no clarity on the implementation of the direct subsidy policy
in other regions. In April 2014, China had terminated its three year old cotton stocking policy under which it was purchasing cotton at
fixed support price from the farmers and would shift to direct subsidy based policy from CY 2014/15 under which the farmers would
sell cotton at the market price and in case the market price is lower than the government set target price, the difference (subsidy)
would be paid directly to the farmers.
China has set the target prices of Yuan 19,800/ton for CY 2014/15 which is lower than the support price of Yuan 20,400/ton for CY
2013/14 and CY 2012/13 under the cotton stocking policy, though it is equal to the support price for CY 2011/12. As the direct subsidy
policy is to be initially implemented only in Xinjiang region, uncertainty on the market price and whether the direct subsidy policy
would be extended to other regions as well are the key reasons for expected decline in the cotton production in China in CY 2014/15.
ICRA LIMITED
Sources: ICRA Estimates, Industry data, ICAC, USDA

The above data refers to International cotton year which commence from August
and ends in July
Page |7
World Cotton Balance Sheet

Million bales of 170 Kgs
Estimate as on
Opening stock
Production
Trade: (Import/Export)
Consumption
Closing Stock
Stock to use ratio
Jul-10
Jul-11
Jul-12
Jul-13
79.5
131.7
45.5
152.3
60.3
40%
60.3
150.0
45.5
146.9
64.5
44%
64.5
162.1
58.8
132.0
94.1
71%
94.1
157.4
59.8
136.4
115.0
84%
Jul-14
Sep-14
115.0
152.0
51.7
138.3
128.5
93%
Jul-14E
May-14
115.3
150.0
51.7
140.1
125.4
89%
% Change
0%
1%
0%
-1%
2%
Jul-15E
Sep-14
128.5
151.1
45.1
143.6
136.1
95%
Jul-15E
May-14
125.4
147.9
46.6
143.2
130.3
91%
Jul-15E
Sep-14
79.4
37.8
10.2
46.7
80.6
172%
Jul-15E
May-14
76.3
37.8
10.9
47.4
77.5
164%
China Cotton Balance Sheet

Million bales of 170 Kgs
Estimate as on
Opening stock
Production
Trade: (Import)
Consumption
Closing Stock
Stock to use ratio
Jul-10
Jul-11
Jul-12
Jul-13
27.4
41.0
14.0
64.0
18.2
28%
18.2
39.1
15.4
58.9
13.6
23%
13.6
43.5
31.4
48.7
39.8
82%
39.8
44.8
26.0
46.1
64.5
140%
Jul-14E
Sep-14
64.5
41.0
18.1
44.2
79.4
180%
Jul-14E
May-14
64.5
41.0
16.4
45.5
76.3
168%
% Change
0%
0%
10%
-3%
4%
The cotton stock level in China is estimated to have increased by ~4% at the end of CY 2013/14 from the initial estimate to ~79.4 million
bales on account of higher imports and decline in consumption. As the shift towards the direct subsidy policy from CY 2014/15 would
make the domestic cotton available to mills in China at market rates, it would increase the domestic consumption of cotton which had
been declining over the past few years due to high domestic cotton prices (higher than global prices) and high import duty on cotton (peak
import duty of 40%), which had resulted in increased yarn imports which had remained duty free. While production (~37.8 million bales) is
expected to remain lower than consumption (~46.7 million bales) in CY 2014/15 as well, the cotton imports would be limited mostly to
meet the shortfall in the domestic production vis--vis consumption, which would keep the increase in cotton stock levels modest unlike
that in the past when most of the domestic cotton was stocked under the governments cotton stocking policy. As a result, cotton stock
levels are expected to increase only modestly by ~1.5% to 80.6 million bales by end of CY 2014/15 which would be equivalent to stock to
consumption ratio of 172% at the end of CY 2014/15 compared to 180% at the end of CY 2013/14. However, China would continue to
account for most of the global cotton stock at ~59% at the end of CY 2014/15 compared to ~62% at the end of CY 2013/14.

The above data refers to International cotton year which commence from
August and ends in July
Despite the increase in cotton consumption in China in CY 2014/15, given the sizeable requirement of cotton yarn, it would continue to
meet a part of its requirement through import of cotton/cotton yarn. Prior to implementation of the cotton stocking policy in CY 2011/12,
China had an annual cotton consumption of ~58~64 million bales. As a result, with expected consumption of 46.7 million bale of cotton in
CY 2014/15, the balance requirement of cotton/cotton yarn would continue to be met through imports, the proportion of which may
however vary in CY 2014/15 compared to that in CY2013/14 depending on the import duty structure on cotton and cotton yarn. However,
the above assumption of import of cotton and cotton yarn would be contingent on the policy on liquidation of cotton stock by China from
its reserves as release of cotton at import parity prices (including import duty) would obviate the need to import any cotton/cotton yarn in
CY 2014/15.
ICRA LIMITED
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Trend in international cotton prices Expected increase in global cotton availability due to change in Chinas cotton policy has resulted in sharp decline in international cotton prices
Cotlook A:
Cotlook (Cents/Pound)
Cotlook ($/kg)
YoY Change
Jan-14
90.96
2.01
6%
Feb-14
94.05
2.07
5%
Mar-14
96.95
2.14
3%
Apr-14
94.20
2.08
2%
May-14
92.71
2.04
0%
Jun-14
90.90
2.00
-2%
Jul-14
83.84
1.85
-9%
Aug-14
74.00
1.63
-20%
Dec-14 (F)
67.44
1.49
-23%
Jun-Aug 14
82.91
1.83
-11%
Mar-May 14
94.62
2.09
1%
Jun-Aug 13
92.80
2.05
11%
Cotlook A is an index representative of the level of offering prices on the international raw cotton market. It is an average of the cheapest five quotations from a selection (at present numbering nineteen) of the principal upland cottons traded
internationally
The Cotlook A Index which had remained range-bound at ~USD 2/Kg over last three cotton seasons, had been declining since April 2014 after the announcement by China to discontinue its
three year old cotton stocking policy, which had supported the global prices over this period, despite the rising global stock levels. China had been purchasing its domestic cotton at support
prices which were higher than the international prices and most of the global cotton stock was being built up in China which is estimated to have accumulated cotton stock equivalent to ~62%
of the global stock at the end of CY 2013/14. Due to higher prices, the cotton stock in China was not available to the mills in China which had relied on import of cotton/cotton yarn from other
countries to meet their requirement. This had resulted in tight global cotton position outside China and had kept the global prices firm. However with shift to direct subsidy policy in China from
CY 2014/15, the global availability of cotton would improve (world less cotton stock to demand ratio expected to increase to 39% at end of CY 2014/15 compared to 33% in the previous year)
and this has resulted in decline in the international cotton prices. In addition to the cotton policy change in China, increase in estimate global cotton production in CY 2014/15 had also
contributed to the decline in the international cotton prices. The Cotlook A Index which was at USD 2.1/Kg in March 2014 had declined by 24% to USD 1.6/Kg in August 2014 and the December
futures are prevailing lower by further ~9% at ~USD 1.5/Kg.
ICRA LIMITED
Page |9
Indian Cotton Scenario Domestic cotton stock position to improve in CY 2014/15 due to decline in exports which is expected on account of reduced demand from China
The domestic stock position at the end of cotton year which ends in September 2014 (CY 2013/14) is expected to improve from the previous
estimate with closing stock of ~3.3~3.6 million bales which would be equivalent to stock to consumption ratio of ~11~12% at the end of CY
2013/14 compared to the previous estimate of ~6~8%. The improvement in the domestic stock position had been driven by revision in the
production estimate for CY 2013/14 by ~7% in line with the revision in the production estimate by Cotton Advisory Board (CAB). The revision
in the production estimate by CAB was anticipated while making the previous estimate in the backdrop of high levels of exports during the
year, which would have otherwise reduced the closing stock levels to the lowest level since the last two decades. Despite the improvement
in the expected stock position, it would continue to remain tight with stock of only ~1.5 months of consumption at the end of CY 2013/14.
The cotton production in CY 2014/15 is expected to be ~38~39 million bales, which is a modest decline of ~3% over CY 2013/14. While the
cotton acreage is higher by ~10% at 12.5 million hectare, expected reduction in yield due to scattered and late onset of the monsoons is
expected to result in decline in the production in CY 2014/15. The cotton exports are expected to decline significantly by ~40% in CY
2014/15 on account of reduced demand from China as the cotton prices in China are expected to align with the international prices on
import parity basis (including import duty) which would reduce the cotton imports by China. While the yarn exports are also expected to
decline due to decline in demand from China as it increases the consumption of its domestic cotton, improvement in the domestic demand
in India and shift towards cotton yarn due to decline in price differential between cotton and polyester fiber prices is expected to keep the
cotton consumption at similar levels as that in CY 2013/14. As a result, due to reduced exports, the closing stock levels are expected to
increase significantly to ~6.5~7.5 million bales, which would increase the stock to consumption ratio to ~24%, the highest since last five
cotton seasons.
Indian Cotton Balance Sheet
Mn bales of 170 kgs CY10 CY11
CY12
CY13
Actual Actual Actual Actual

Opening stock
Production
Imports
Consumption
Exports
Closing Stock
Stock to use ratio
7.2
30.5
0.6
25.9
8.3
4.1
16%
4.1
33.9
0.2
26.0
7.7
4.6
18%
4.6
35.3
1.2
25.3
12.9
2.9^
11%
4.0^
36.5
1.5
28.3
10.1
3.5
12%
CY14
Provisional as on
July 2014
3.5
39.0
0.8
28.7
11.4
3.2
11%
CY14
ICRAs Revised
Estimates (Sep-14)
3.5
39.0~40.0
0.7~0.9
28.6~29.2
11.4~11.6
3.3~3.6
11~12%
CY14
ICRAs Earlier
Estimates (May-14)
3.5
36.5~37.5
1.0~1.5
29.2~29.7
10.0~10.5
1.8~2.3
6~8%
CY15
ICRAs Estimate
(Sep-14)
3.3~3.6
38.0~39.0
0.8~1.0
28.6~29.2
6.5~7.5
7.0
24%
Sources: ICRA Estimates, CCI, Cotton Advisory Board of India (CAB); The above data refers to Indian cotton year (CY) which commence from October and ends in September
^During April 2013, CAB revised its opening stock estimates for CY2013
Monthly cotton consumption and exports

Mn bales of 170 kgs
Jan-14 Feb-14
Cotton Consumption
2.52
2.32
Cotton Exports
2.06
1.42
Mar-14
2.51
1.31
Apr-14
2.42
0.92
May-14
2.46
0.65
Jun-14
2.42
0.36
9M CY 14
21.86
11.23
9M CY 13
20.36
9.48
% Change
7%
18%
Sources: ICRA Estimates, Industry data, USDA, Textile Commissioner,

Cotton Advisory Board of India; Cotton Corporation of India, Ministry of
Agriculture, Government of India.
The above data refers to the Indian cotton year which commences in
October and ends in September
CY 13
28.32
10.14
Sources: Textile Commissioner, USDA
ICRA LIMITED
P a g e | 10
Outlook on International Cotton Prices (CY 2014/15) - International cotton prices to soften further on account of increase in global availability of cotton; Chinas policy on sale of its
cotton reserves remains key driver for the international cotton prices
The international cotton prices had been declining since April 2014 after the announcement by China on termination of its three year old
cotton stocking policy and shift towards direct subsidy policy which is expected to make the cotton available to mills in China at market
rates, reducing their import requirement for cotton and cotton yarn. As the import demand from China had resulted in low global stock
levels outside China, which had kept the global cotton prices firm over the last three cotton seasons, reduction in import demand from
China would increase the cotton stock levels outside China, which shall result in softening in the international prices. As the cotton from
new cotton season CY 2014/15 shall be available from end of September/October 2014, the international cotton prices have already
declined by ~24% till August 2014 from the price in March 2014 and the December future price are prevailing further lower by ~9%. The
international cotton prices are expected to align with the future price at ~USD 1.5/Kg for CY 2014/15 compared to ~USD 2.0/Kg which had
prevailed over the last three cotton season. Moreover, as the global cotton position turns surplus from CY 2014/15, the international
prices shall be driven by the prices in the main consuming country, i.e. China unlike the prices in the previous cotton seasons when the
prices were driven by the prices in the main supplying country i.e. India, as the global stock position (excluding China) was tight.
Sources: ICRA Estimates, Industry data, Cotton Outlook Limited
As the international prices shall be driven by the prices in China, they remain sensitive to Chinas policy on release of cotton from its
reserves which hold ~62% of global cotton stock. Release of cotton from the reserves at prices such that it is lower than the landed cost of
imported cotton (international cotton price plus import duty), would further reduce the import demand from China from the current
estimate. This would increase stock levels outside China, which shall in turn lead to further decline in the international prices.
Cotton Prices (USD/Kg)
% change YoY
Mar-14
1.93
-3%
Apr-14
1.96
-1%
May-14
2.00
4%
Jun-14
1.98
2%
Jul-14
1.95
-2%
Aug-14
1.84
-10%
11M CY 14 11M CY 13
1.92
1.88
Cotton prices are for ginned cotton.
% Change
2%
Sources: Textile Commissioner, ICRA research
ICRA LIMITED
P a g e | 11
Outlook on Domestic Cotton Prices (CY 2014/15) - Domestic prices also expected to decline to align with international prices and also due to improvement in domestic stock position
Though the international cotton prices had declined since April 2014, the domestic cotton prices had remained firm and had increased till
May 2014 in both dollar and rupee terms on account of tight domestic stock position due to high levels of cotton and cotton equivalent
yarn export. The pending cotton arrivals as on June 2014 was ~3.0 million bales while the cotton stock with the mills was ~5.1 million
bales, resulting in total availability of ~8.1 million bale of cotton till end of CY 2013/14, which was just sufficient to meet the cotton
requirement.
However, the domestic prices had been declining since June 2014 as the new cotton season approaches, to align with the international
prices and also easing of production concerns for CY 2014/15 after recovery of monsoon from late July/August 2014. The domestic cotton
prices in August 2014 was USD 1.8/Kg which is lower by ~8% compared to the price in May 2014 and lower by ~10% on YoY basis. The
domestic cotton prices in August 2014 was Rs. 111.8/Kg in rupee terms which is lower by ~9% compared to the price in May 2014 and
lower by ~13% on YoY basis.
The domestic prices are expected to decline further as it converges with the international cotton prices, given the limited trade
restrictions on cotton import/export and also due to the expectation of increase in the domestic cotton stock levels at the end of CY
2014/15. With domestic cotton prices already below the Minimum Support Price (MSP) in August 2014 and with expectation of further
decline in the prices, the possibility of significant MSP operations by the government during the CY 2014/15 is high.
The decline in the cotton prices would however reduce the funding requirement for the Indian spinning mills who typically stock their
cotton requirements for the entire season during the harvest season which is till March. Moreover, given the susceptibility of the cotton
prices on Chinas policy on liquidation of its cotton reserve, the spinning mills are likely to adopt a cautious approach while stocking
cotton for the CY 2014/15.
Cotton Prices (Rs./Kg)

% change YoY
Cotton Prices (USD/Kg)
% change YoY
Mar-14
117.99
10%
1.93
-3%
Apr-14
118.20
10%
1.96
-1%
May-14
123.27
16%
2.00
4%
Jun-14
118.23
6%
1.98
2%
Jul-14
117.12
-2%
1.95
-2%
Aug-14
111.79
-13%
1.84
-10%
11M CY 14 11M CY 13
117.58
105.29
1.92
1.88
% Change
12%
2%
Sources: ICRA Estimates, Industry data, Cotton Advisory Board of India; Cotton
Corporation of India.
Cotton prices are for ginned cotton
Sources: Textile Commissioner, ICRA research
ICRA LIMITED
P a g e | 12
Decline in demand from China has reduced the cotton yarn exports from India which has increased the domestic inventory levels as the production has remained steady
The domestic cotton yarn production continued to remain steady with production increasing by 4.5% during Q1 FY2014-15 over the
same period last year, though it has moderated from the growth of 9.8% witnessed in FY 2013-14. The increase in the production had
been driven by improved capacity utilization of the mills which had operated at an average of ~96% utilization level during this period
compared to utilization level of ~92% in the same period last year.
As the spinning mills have been operating at high utilization levels, the pace of growth is likely to slow down going forward, even if
the current demand sustains, as also reflected in stagnation in the production volumes since September 2013.
The increase in the production and thereby of the capacity utilization (from ~80% in FY 2011-12 to ~95% in FY 2013-14) of the Indian
spinning industry over the last two years was primarily on account of substantial increase in the export demand, primarily from
China, which was driven by high cotton prices in its domestic market and import restrictions on cotton, thereby making it cheaper to
import cotton yarn rather than cotton.
As the cotton prices in China has eased since April 2014 due to reduction in the reserve auction price (to Yuan 17,250/ton from Yuan
18,000/ton earlier) and expectation of lower prices in CY 2014/15 with shift to direct subsidy policy, the demand of yarn from China
has witnessed a decline in Q1 FY 2014-15 due to increase in its domestic production as also reflected in decline in yarn exports from
India by ~5.6% in Q1 FY 2014-15 over the same period last year. The export registration for yarn in volume terms in Q1 FY 2014-15
has reduced by ~18% on YoY basis and by ~21% on QoQ basis with the proportion of yarn export registration to total yarn production
declining to ~29% in Q1 FY 2014-15 as compared to ~36% in Q4 FY 2013-14.
Despite the decline in yarn exports, the domestic yarn production had remained steady which along with relatively flat domestic
demand has resulted in increase in the domestic yarn inventory levels in Q1 FY 2014-15 which has increased to ~13 days as compared
to ~11 days in Q4 FY 2013-14 and Q1 FY 2013-14.
Trend in Yarn Production and Exports

33%
Production - Million Tons
7.0
5.0
1.5
1.4
4.0
3.0
2.0
1.0
35%
31%
6.0
1.1
1.0
1.5
1.5
1.2
1.2
1.37
1.3
1.3
27%
1.4
30%
25%
24%
20%
19%
19%
2.9
3.1
3.5
3.1
3.6
3.9
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
0.3
0.3
1.0
0.0
20%
15%
Cotton Yarn
Man Made filament Yarn
3M Mar15
Blended Spun Yarn

% Cotton Yarn Export (RHS)
Sources: ICRA Estimates, Industry data, Ministry of Textiles, Textile

Commissioner
ICRA LIMITED
P a g e | 13
Capacity utilization of the Indian spinning mills is likely to decline in FY 2014-15 due to reduced export demand unless supported by increase in domestic demand
With the expectation of further easing of cotton prices in China with the arrival of new cotton in CY 2014/15, the demand for Indian
yarn is likely to decline and may pose pressure on capacity utilization levels which may result in decline in yarn production during the
year unless supported by increase in domestic demand.
480
Trend in Total Spun Yarn Production and Capacity Utilisation
100%
Around 20% reduction in export demand in FY 2014-15 (as per the trend during Q1 FY 2014-15) without corresponding pick up in the
domestic demand may result in decline in capacity utilization of the spinning mills to ~90% compared to ~95% in the previous year.
Given the substantial nature of fixed overheads, the decline in the capacity utilization would also result in moderation in the
profitability.
Within spun yarn*, which accounts for most of the domestic yarn production at ~80% in FY 2013-14, the share of cotton yarn vs blended
yarn has ranged from ~74% to 76% over the last two years depending upon the price differential between the cotton and polyester fiber.
Production - Million Kg
460
95%
440
420
90%
400
85%
380
360
80%
340
75%
320
300
70%
Apr-13
Jul-13
Oct-13
Spun Yarn Production
Jan-14
Apr-14
Jul-14
Capacity Utilisation (RHS)
The proportion of cotton yarn in total spun yarn production during Q1 FY 2014-15 had declined to 74.2% from 74.7% in Q4 FY 2013-14 on
account of increase in the price differential between cotton and polyester fiber to ~Rs. 22.1/Kg from ~Rs. 19.8/Kg.
*Spun yarn refers to yarn manufactured on spindles/rotors
Sources: ICRA Estimates, Industry data, Ministry of Textiles, Textile

Commissioner
ICRA LIMITED
P a g e | 14
Spread between yarn and cotton prices during 5M FY 2014-15 remain lower over the previous period on account of higher cotton prices
The average export price of yarn for Indian spinners price during 5M FY 2014-15 had been lower by ~5.8% compared to the same period
last year; however due to rupee depreciation, the domestic yarn prices in rupee terms had been at similar levels.
International Cotton Yarn Prices
4.0
US$/Kg
The domestic yarn price in August 2014 was Rs. 195/Kg while the yarn export price was USD 3.2/Kg. While the yarn prices in USD and local
currency terms in both China and Pakistan had been lower during 5M FY 2014-15 over the corresponding previous period by ~4~6%, the
rupee prices of yarn in India had been flat.
4.5
3.5
3.0
The yarn prices have however started to decline from August 2014 on account of decline in cotton prices and with the expectation of lower
cotton prices in CY 2014/15, the yarn prices are expected to decline from the current levels from October/November 2014. The yarn prices
(in USD) in the three major yarn producing countries i.e. China, India and Pakistan had been declining since April 2014 with the decline in
the international cotton prices after the announcement by China to shift to direct subsidy based policy which is expected to improve the
global cotton availability from CY 2014/15.
2.5
Apr-12
Dec-12
China
2.0
Apr-13
Aug-13
India
Dec-13
Apr-14
Aug-14
Apr-14
Aug-14
Pakistan
Cotton Yarn Spread - US$/Kg
1.8
1.6
US$/Kg
The export spread (difference between yarn and cotton prices) for the Indian spinners during 5M FY 2014-15 remains lower compared to
that over the corresponding period last year as the decline in the yarn prices (in USD terms) had been more than that in the cotton prices.
The average spread during this period was ~USD 1.37/Kg which is lower by ~11.2% over the previous corresponding period.
Aug-12
1.4
1.2
1.0
The average spread in rupee terms (~Rs.82/Kg during 5M FY 2014-15) had also been lower compared to the previous corresponding period,
though the decline had been lower at ~4.4% due to rupee depreciation. The average exchange rate during 5M FY 2014-15 was Rs. 60/USD
compared to ~Rs. 58/USD in the previous year with rupee depreciating by ~3.9% over this period.
0.8
0.6
0.4
Apr-12
Aug-12
Dec-12
China
Apr-13
India
Aug-13
Dec-13
Pakistan
Sources: ICRA Estimates, Industry data, Ministry of Textiles,

Textile Commissioner
The above data refers to the Indian financial year which begins in April and
ends in March
ICRA LIMITED
P a g e | 15
Margins in Q1 FY 2014-15 were stable due to stable yarn prices, though likely to moderate in Q2 FY 2014-15
While the spread in Q1 FY 2014-15 in rupee terms (Rs. 81.7/Kg) was higher by ~4% and in USD terms (USD 1.4/Kg) by ~9% compared to that in Q4 FY 2013-14 (Rs. 78.8/Kg and USD 1.3/Kg
respectively), the profitability had been at similar levels as the yarn prices were flat during this period while the average cotton procurement cost for the mills remained at similar levels as
that in Q4 FY 2013-14 because mills typically stock cotton during the harvest season till March 2014 for the remaining period of the cotton year. The yarn prices had moderated with the
decline in the cotton prices in Q2 FY 2014-15, however due to higher cost cotton procured during the cotton harvest season, the profitability of the Indian spinners is expected to moderate
from that witnessed in Q1 FY 2014-15. Moreover decline in the capacity utilization levels due to slowdown in the export demand would also have an impact on the profitability in Q2 FY
2014-15.
Cotton Yarn Prices (Rs./Kg)

% change YoY
Cotton Yarn Prices (USD/Kg)
% change YoY
Contribution (Rs./Kg)
% change YoY
Contribution (USD/Kg)
% change YoY
Mar-14
196
2%
3.17
-10%
78.06
-7%
1.24
-21%
Apr-14
202
0%
3.37
-9%
83.79
-11%
1.41
-19%
May-14
200
4%
3.32
-7%
81.56
-5%
1.32
-20%
Jun-14
198
0%
3.35
-4%
79.87
-7%
1.37
-12%
Jul-14
200
-2%
3.33
-3%
83.18
-2%
1.38
-3%
Aug-14
195
-6%
3.23
-5%
82.98
5%
1.39
2%
5M-FY 15
199
5M-FY 14
201
% Change
-1%
3.32
3.53
-6%
82.28
86.05
-4%
1.37
1.55
-11%
Source: Textile Commissioner, ICRA research
ICRA LIMITED
P a g e | 16
Outlook on Indian spinning industry: Stable with possible downside risk on account of expected reduction in export demand for yarn which would put pressure on the capacity
utilization and contribution margin of the Indian spinners; Indian spinners to however benefit from low cotton cost which shall reduce their funding requirements
Due to increase in cotton prices during CY 2013/14 (from Q3 FY 2013-14 onwards) with relatively modest increase in yarn realization, the contribution margin of the Indian spinners had
reduced since onset of new cotton season. As a result, the profitability of the Indian spinners had declined in H2 FY 2013-14, though it remained robust. The profitability in Q1 FY 2014-15 was
stable as that in Q4 FY 2013-14 as the domestic yarn prices were stable while the cotton procurement cost remained at similar levels as that in Q4 FY 2013-14 due to stocking of cotton by the
spinning mills during the harvest season which ends in March.
The profitability is however likely to moderate in Q2 FY 2014-15 as the yarn prices have declined with decline in cotton prices while the cotton procurement cost shall remain at similar level
to that in the last quarter. Moreover, as the yarn demand from China is expected to reduce, the capacity utilization of the Indian spinners would be under pressure which would result in
downward pressure on the profitability in H2 FY 2014-15 given the substantial overheads and also on account of oversupply in the market.
The outlook on the Indian cotton spinning industry is stable with possible downside risk on account of risk emanating from the changes in the Chinas cotton policy for CY 2014/15, which is
already evident in reduced prices of cotton futures. As against the average of USD 2.0/Kg of Cotlook A price for CY 2013/14, the Cotlook A futures for December 2014 are currently prevailing at
USD 1.49/Kg, which will also result in decline in the domestic cotton prices as it converges closer to the international prices, given the limited trade restrictions on cotton import/export and
expected improvement in the domestic stock levels at the end of CY 2014/15. The domestic cotton prices in August 2014 has already fallen below the Minimum Support Price (MSP) and given
the expectation of further reduction in the cotton prices in CY 2014/15, the possibility of substantial support operations under MSP by the government is fairly high. Since the decline in cotton
prices will coincide with the beginning of cotton season, when the stocks with the mills are lowest, the risk of inventory losses for mills (as happened in FY 2011-12) is low.
The decline in cotton prices will be beneficial for industry as it will reduce the input cost as well as inventory funding requirements apart from improving demand for cotton yarn on account of
increased competiveness with respect to synthetic fibers which shall result in fiber substitution. However as the increase in the capacity utilization and thereby of yarn production over the last
two years was driven by the demand from China which had resulted in yarn export from India reaching all time high of 33% of domestic production in FY 2013-14, the export volumes of Indian
yarn will be adversely impacted as China increases the consumption of its domestic cotton stocks to meet its yarn demand. As a result, the ability of industry to maintain high capacity
utilization as well as profit contribution levels in a declining demand scenario would be a challenge.
Around 20% reduction in export demand in FY 2014-15 (as per the trend during Q1 FY 2014-15) without corresponding pick up in the domestic demand may result in decline in capacity
utilization of the spinning industry to ~90% compared to ~95% in the previous year. Moreover, given the uncertainty on the Chinas policy on liquidation of its huge cotton stock, the mills are
expected to be cautious while stocking cotton during CY 2014/15 to avoid any inventory loss. Liquidation of cotton stock by China at prices which are lower than the landed cost of imported
cotton (including import duty) would further lower Chinas import demand of cotton from the current estimate, which would further depress the international cotton prices and could result in
inventory loss for those players who stock substantial cotton inventory.
Though the cotton prices in China are likely to decline from CY 2014/15 which would increase its domestic yarn production, however given its significant requirement of cotton and cotton
yarn, China, to an extent would continue to remain dependent on import of cotton/cotton yarn to meet its requirement, if the huge cotton stock is not liquidated. As a result, continued duty
free imports of yarn as well as continuance of the import duty on cotton imports will be critical to ensure that the Chinese yarn demand is met through import of yarn, rather than import of
cotton. Reduced import duty on cotton by China will shift the Chinese yarn demand from import to its domestic sources, which was the practice prior to CY 2011/12.
ICRA LIMITED
P a g e | 17
Financial performance had remained steady in Q1 FY 2014-15; however it is expected to moderate going forward on account of profitability pressure due to reduced demand
The financial performance of the Indian spinning industry was stable in Q1 FY 2014-15 as compared to that in Q4 FY 2013-14 as the
yarn production and spread between the yarn & cotton prices remained steady. However, decline in yarn prices in Q2 FY 2014-15
with high cost carry forward cotton stock from the CY 2013/14 and decline in the export demand is likely to result in moderation in
the profitability and debt coverage for the full year FY 2014-15 as compared to the previous year. Due to leveraged capital structure
arising out of capital intensity (fixed as well as working capital) and tendency to leverage on account of interest subsidies available
on term debt, the financial profile of the industry remains vulnerable to cyclical moderations in profitability.
Revenue Growth: For the ICRAs sample set of 22 large cotton spinners, revenues had increased by 11% in Q1 FY 2014-15 (YoY) as
against an increase of ~5% in cotton yarn production and ~2% increase in sales realizations witnessed by the industry. The revenue
growth in Q1 FY 2014-15 is similar to the revenue growth witnessed in Q4 FY 2013-14 on YoY basis. The revenue growth has
however moderated from that in the previous quarters due to moderation in the production growth on account of the capacity
constraints as the industry has been operating at high utilization levels. However ability to prevent de-growth in the backdrop of
expected moderation in export demand and decline in yarn prices will remain a key challenge for domestic industry. The revenues
for the companies in ICRA sample set had declined by ~2% in Q1 FY 2014-15 on QoQ basis and is expected to decline by ~8~10% in
FY 2014-15 driven by expected decline in production as well as yarn realizations.
Profitability margins: The profitability margin in Q1 FY 2014-15 remained comfortable at ~15% and was at similar levels as that in Q4
FY 2013-14. The profitability is however expected to decline to ~12% in Q2 FY 2014-15 on account of decline in yarn prices. For full
year FY 2014-15, ICRA expects the profitability of companies in ICRA sample set to decline to ~13% compared to ~17% in FY 2013-14
as the inventory gain realized during H1 FY 2013-14 would not be available this year and expected reduction in demand.
Debt Coverage: While the operating profitability was stable in Q1 FY 2014-15, the increase in the interest expense by ~13% on QoQ
basis had resulted in moderation in the interest coverage from 3.5 times in Q4 FY 2013-14 to 3.0 times in Q1 FY 2014-15. While in
quantity terms the cotton inventory has not changed significantly in March 2014 vs March 2013, however increased prices of cotton
as well as yarn has increased amounts of working capital borrowings leading to increase in interest expense, which couled with
decline in absolute operating profits had resulted in decline in interest coverage. With expected profitability pressures in FY 2014-15,
the debt coverage indicators are expected to moderate, however, lower cotton prices would reduce the funding requirement and
limit moderation in the debt coverage.
Sources: Aggregate financials for 22 large cotton spinning companies which are listed on stock exchanges;
The above 12 Month data refers to the period which commences in April and ends in March
The above data refers to the quarterly financial performance as reported by these companies to the stock exchanges
ICRA LIMITED
Sources: Aggregate financials for 22 large cotton spinning

companies which are listed on stock exchanges;
P a g e | 18
Annexure 1: Rating Distribution - ICRA rated Entities Upgrades in 5M FY 2014-15 continue to outpace the downgrades due to improved operating and financial position
While assessing the credit profile of spinning companies, ICRA factors in attributes which include:
a)
Scale of operations and extent of modernization of manufacturing facilities: Yarn being a commoditized product results in limited pricing power, hence larger scale of operations,
modernized facilities helps in reducing wastages/improving yields and improving economies of scale, thereby resulting in better cost structure and fundamentally improves the
ability to compete in commoditized market
b) Capacity Utilization levels: As reflected in the average utilization of ~95% for the spinning industry, high capacity utilization is of utmost importance so as to reduce the fixed capital
cost per unit of production, given the capital intensive nature of the sector. The track record of maintaining high utilization levels/ fast ramp up of new capacities is considered a
positive attribute for the entities being rated
c) Level of Integration: Higher levels of integration lead to lower cyclicality in profitability margins as the entitys exposure to intermediate goods in the value chain is lower. For
example, an integrated fabric manufacturer witnesses a lower volatility in profit margins than a standalone spinner. Integrated operations also help in reducing overheads related
to sales, transportation, packaging, taxes at intermediate stages etc.
d) Diversified product portfolio: Better value addition with higher share of value added yarns can improve pricing power to an extent and hence considered as a positive attribute
e) Distribution and selling network: Diversity in customer profile and markets helps to reduce adversities in a particular market and capitalize on opportunities in other markets
f) Working capital management: Given the seasonal nature of cotton availability, the working capital intensity of the business remains high. Prudent stocking of cotton in relation to
orders in hand, outlook on cotton availability and prices is an important factor to mitigate the inventory holding risks
g) Financial Profile: Spinning companies are usually highly leveraged, both because of capital intensive nature of the industry, investment incentives available as well as large stocking
requirement due to seasonal nature of procurement. Owing to high leverage, high working capital requirements and exposure to cyclical trends in the industry, financial flexibility
in terms of availability of unutilized working capital limits, ability to stock cotton during harvest season and ability to refinance/raise fresh borrowings are key factors for measuring
financial flexibility
h) Scale of projects and ability to fund: Given the availability of investment incentives, the players have a tendency to leverage and continuously undertake new projects. The scale of
these new projects and ability to fund the same are also key constraining factors for the credit profile.
i) Eligibility under Investment incentives: Availability of investment incentives under schemes such as TUFS improves the return on capital indicators and supports the projects
profitability. Approvals at the time of being rated reduces the ambiguities related to availability of the incentives and can be a supporting factor for the credit profile
While ICRA tends to achieve rating stability by rating entities through the cycles, sharp correction in cotton prices
leading to high inventory losses resulted in sizeable rating downgrades in FY12, the spillover effects of which
continued in H1-FY13 too. Subsequently, with the improvement in profitability and accruals in FY 13 which
continued in FY 14 as well, upgrades in FY14 have significantly outpaced the downgrades with the number of
j) While
tends
to achieve
rating
upgrades
at ICRA
almost
the similar
levels
as downgrades in FY12. With improvement in financials, the pace of upgrades
continues to remain high during 5M FY 15, however with expected profitability pressures; this is unlikely to
continue in near future.
Rating migration of ICRA-rated spinning companies
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
5M FY 2015
Total Downgrades in Textile sector

Total Upgrades in Textile sector
Downgrade to upgrade ratio
16
5
3.20
32
0
-
120
19
6.32
80
32
2.50
35
111
0.32
14
62
0.23
Total Downgrades in spinning sector

Total Upgrades in spinning sector
Downgrade to upgrade ratio
8
2
4.00
15
0
-
81
8
10.13
38
12
3.17
11
66
0.17
4
28
0.14
ICRA LIMITED
P a g e | 19
Annexure 2: RR-TUFS: Investment in standalone spinning projects remain subdued due to reduction in benefits as the scheme focuses on capacity creation in down-stream sectors
The R-TUFS scheme was modified in October 2013 to Revised Restructured TUFS (RR-TUFS) to incentivize investments in
downstream capacities in the weaving, processing and garmenting sectors to achieve balanced growth across the value
chain as most of the investments under the previous TUFS schemes had been mostly in the spinning sector. While significant
investment in the spinning sector was made as reflected in the domestic spinning capacity not only being sufficient to meet
the domestic requirements but also able to export ~33% of the yarn production, the investments in the other sectors had
lagged.
Due to reduction in the incentives available to standalone spinning projects under RR-TUFS, the incremental investment in
the standalone spinning projects has remained subdued. The share of standalone spinning projects approved under RR-TUFS
was only ~23% of the total projects approved as on September 2014, which has declined from a share of 30% in May 2014.
The moderation is also evident in only 30% of the total subsidy earmarked for standalone spinning projects utilized till
September 2014 (increased from 24% in May 2014) compared to 81% utilization of the total subsidy earmarked for other
sectors which include weaving, processing and garmenting (43% in May 2014), indicating shift towards integrated projects
and standalone downstream sectors as these projects offer higher fiscal benefits as compared to standalone spinning
projects.
Though the benefits under RR-TUFS have been reduced for standalone spinning projects, it is compensated by the incentives
available under investment schemes announced by the various state governments such as Gujarat, Madhya Pradesh,
Maharashtra and Rajasthan and incremental additions should largely be concentrated in these states only.
The pace of investments in the integrated projects and down-stream sectors have picked up significantly over the last few
months and with only ~19% of the sanctioned subsidy available for these sectors as on September 2014 for the rest of the
th
12 five year plan, the government would have to increase the subsidy available under RR-TUFS to maintain the pace of
investment in the textile sector.
Sources: ICRA Estimates, Ministry of Textiles, Textile Commissioner,

The above data refers to the Indian financial year which commences in April and ends in
March
The subsidy caps and their utilization under RR-TUFS are as mentioned below:
Rs in
Billion
Subsidy Cap for

fresh investment
under
RR-TUFS
Subsidy available
as on September
2014
Subsidy
available as on
May 2014
% subsidy utilized as on
September 2014 out of total
subsidy earmarked
% subsidy utilized as on
May 2014 out of total
subsidy earmarked
% Share of sector in subsidy

approved under RR-TUFS till
September 2014
% Share of sector in
subsidy approved under
RR-TUFS till May 2014
A
4.75
18.88
23.63
B
3.30
3.65
6.96
C
3.63
10.69
14.32
(A-B)/A
30%
81%
71%
(A-C)/A
24%
43%
39%
% breakup of (A-B)
9%
91%
100%
% breakup of (A-C)
12%
88%
100%
Sector
Spinning
Others*
Total
* The sectoral caps have been removed in RR TUFS while retaining the share of standalone spinning at ~20% of the total subsidy for fresh investment
ICRA LIMITED
P a g e | 20
Company Section
ICRA LIMITED
P a g e | 21
AMBIKA COTTON MILLS LIMITED
2.91
4.30
0.94
2.20
FY 14
4.77
20%
1.04
0.13
0.48
81.94
12.50
2.89
4.66
1.00
2.60
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
20%
6%
12%
22%
8%
16%
22%
10%
19%
Total Debt/Net Worth

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
0.78
1.24
3.90
33%
1.94
10
106
0.43
0.95
4.50
62%
1.08
6
115
0.39
0.79
8.07
80%
0.96
4
140
The proportion of export sales have increased steadily over the years and in
FY 2014, exports accounted for ~62% of the total sales of the company,
given the healthy export demand and companys product portfolio of value
add premium yarn. Most of the exports are to East Asian and South East
Asian countries which accounted for ~78% of the total exports of the
company followed by South Asia which accounted for 12% and Europe which
accounted for ~9% of total exports in FY 2014 with the balance 1% being
contributed from other various countries.
ACML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
600
500
400
300
200
100
0
Sep-14
3.10
4.43
1.52
1.96
FY 13
3.98
2%
0.87
0.19
0.31
52.74
9.50
453.8
2.7
556.75/232.15
3M
12M
14%
86%
4%
38%
4%
39%
Jul-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
FY 12
3.89
19%
0.78
0.20
0.24
40.65
5.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
Standalone(Rs. Billion)
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Price Performance
Jun-14
L. Venkatasubbu & Co
The company focuses on value add speciality yarn such as compact and
elitwist yarn with presence across a wide count range from 24s to 140s which
has resulted in consistent high operating profitability for the company. Out
of the total capacity of 109,872 spindles, ~92% of the capacity is for
manufacturing of value add compact yarn. As the company mostly
manufactures high count yarn, it utilizes high proportion of long staple
cotton, which is mostly imported (such as Supima from USA and Giza from
Egypt). During FY 2014, it imported 82% of its total raw material requirement
compared to 61% in FY 2013 and 33% in FY 2012.
48.63%
0.00%
7.00%
31.20%
13.17%
Apr-14
Auditors
IDBI, Bank of Nova Scotia, BOB, Corporation Bank, Axis

Bank
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
Bankers
Shareholding Pattern (%)
Mar-14
Mr. P.V. Chandran
NA
NA
NA
Jan-14
Chairman cum Managing Director
Long Term
Short Term
Outlook
Feb-14
% Product Revenue Mix FY14

Yarn
88%
Fabric
1%
Garments
0%
Others
11%
Total (Rs billion)
4.77
ICRA Ratings
Dec-13
Installed Capacities
Spinning
109,872 spindles
Weaving
Processing
Garmenting
Retailing
-
Ambika Cotton Mills Limited was incorporated in 1988 by Mr P.V. Chandran

and commenced production of cotton yarn from January 1990 with an
installed capacity of 6,048 spindles. The company was subsequently
converted into a public limited company in September 1994. As on March 31,
2014, the company had a total installed capacity of 109,872 spindles across
four manufacturing units in Tamil Nadu. The company also has 27.4 MW
captive wind power generation capacity in Tamil Nadu which was increased
from the earlier capacity of 15.4 MW in FY 2011 at an investment of Rs. 0.73
billion. The captive wind power met around 72% of the power requirement
of the spinning units and has supported high capacity utilization of the
spinning units, given the power shortage in the state.
Oct-13
Geographical Revenue Mix FY14

Domestic
38%
Exports
62%
Nov-13
1988
Tamil Nadu
Rs/Share
ACML
Fact Sheet
Incorporation
Plant Location
Price- Rs/share
Standalone(Rs. billion)
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
0.89
0.20
0.05
22%
6%
3.25
Q2 FY13
1.04
5%
0.24
0.09
23%
9%
4.87
Q3FY13
0.94
-2%
0.21
0.08
22%
9%
5.20
Q4FY13
1.10
20%
0.22
0.08
20%
8%
5.83
Q1FY14
1.07
20%
0.21
0.08
19%
8%
7.57
Q2FY14
1.25
20%
0.27
0.14
21%
12%
8.08
Q3FY14
1.28
36%
0.30
0.15
23%
12%
11.28
Q4FY14
1.18
7%
0.26
0.10
22%
9%
9.54
Q1FY15
1.21
14%
0.27
0.13
23%
11%
12.99
Q1 FY1
0.89
0.20
0.05
22%
6%
3.25
Sources: ICRA Research, Companys Annual Report, Quarterly Results filing with stock exchanges, BSE, NSE
ICRA LIMITED
P a g e | 22
BANNARI AMMAN SPINNING MILLS LIMITED
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
FY 13
5.60
22%
1.13
0.38
0.27
17.34
2.00
FY 14
7.00
25%
1.18
0.38
0.32
20.04
2.00
4.64
6.93
4.16
1.86
4.42
6.94
3.82
2.12
4.40
8.10
4.48
2.41
7%
-4%
0%
20%
5%
12%
17%
5%
12%
2.17
2.70
1.03
5%
12.36
26
90
1.78
2.26
2.98
16%
3.37
29
79
1.84
2.35
3.11
15%
3.80
35
121
In addition, the company has a fabric processing unit near Annur, TN with
capacity to process 24 Lakh meter of fabric p.a. to produce coated fabric,
canvas and breathable water proof fabric.
142.0
2.2
155.1/105
3M
12M
14%
35%
4%
38%
4%
39%
BASML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
180
160
140
The garment division of BASML manufactured 0.75 million pieces of garments

in FY 2014 which was higher by ~53% on YoY basis and accounted for ~5% of
BASMLs FY 2014 revenues. Almost 98% of the revenues from this division
were from exports.
120
100
80
60
40
20
0
Oct-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
FY 12
4.60
-16%
0.34
0.33
-0.16
-10.39
0.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Sep-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
The weaving unit of BASML has 135 looms and is located near Palladam, TN.
The unit manufactures wide-width cotton fabric. During FY 2014, the fabric
production stood at 7.62 million meters, which was high by ~24% on YoY
basis. Moreover, 1672 MT of knitted fabric was also manufactured in FY 2014
which was higher by 9% on YoY basis. Almost 22% of sales of knitted fabric
were from exports.
Jul-14
M/s P N Raghavendra Rao & Co
^ mmpa Million meter per annum, MW Mega Watt
Price Performance
Aug-14
Auditors
Allahabad Bank, Bank of Maharashtra, Corporation

Bank, IDBI, Indian Bank, ICICI, Karur Vysya, OBC, IOB
55.55%
0.00%
1.13%
28.68%
14.64%
Jun-14
Bankers
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Apr-14
Mr. S.V. Arumugam
May-14
Chairman and Managing Director
The spinning unit with installed spinning capacity of 144,240 spindles is

located in Dindigul, Tamil Nadu (TN), which has capacity to produce ~60 Ton
of yarn per day. In FY 2014, the yarn production volume stood at 20,700 MT,
which was higher by ~18% on YoY basis. The spinning operations are
supported by captive windmill power capacity of 29.95 Mega Watt (MW).
Almost 50% of the revenues of the spinning unit were from exports.
NA
NA
NA
Mar-14

Yarn
62%
Fabric
21%
Garments
5%
Others
12%
Total (Rs billion)
7.00
Long Term
Short Term
Outlook
Jan-14
Spinning
144,240 spindles
Weaving
135 looms
Processing
2.4 mmpa^
Garmenting
Not Available
Wind Power
29.95 MW^
ICRA Ratings
Feb-14
Tamil Nadu
Bannari Amman Spinning Mills Ltd (BASML) was incorporated in 1989 as Shiva
Textile and was renamed to BASML in FY 1991. BASML is part of one of the
prominent industrial groups in South India, The Bannari Amman Group which
has business activities in Sugar, Textiles, Distilleries, Education, etc. BASML is
an integrated textile manufacturer which presence in spinning,
weaving/knitting, processing and garmenting. The companys manufacturing
facilities are located in the state of Tamil Nadu (TN).
Dec-13
Plant Location

Domestic
58%
Exports
42%
Nov-13
1989
Rs/Share
Fact Sheet
Incorporation
Price- Rs/share
Standalone(Rs.billion)
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1FY13
1.35
0.30
0.08
22%
6%
3.57
Q2Y13
1.36
7%
0.32
0.09
24%
7%
3.49
Q3FY13
1.46
51%
0.27
0.06
18%
4%
3.04
Q4FY13
1.46
34%
0.27
0.05
19%
3%
2.34
Q1FY14
1.46
9%
0.34
0.10
23%
7%
3.56
Q2FY14
1.87
38%
0.36
0.12
19%
7%
3.98
Q3FY14
1.75
20%
0.27
0.06
15%
4%
3.02
Q4FY14
1.92
32%
0.21
0.03
11%
1%
2.02
Q1FY15
1.73
18%
0.26
0.06
15%
3%
2.58
ICRA LIMITED
P a g e | 23
BANSWARA SYNTEX LIMITED
FY 12
9.24
14%
1.30
0.75
0.15
10.06
1.50
FY 13
10.96
19%
1.47
0.82
0.12
8.15
1.50
FY 14
12.12
11%
1.77
0.81
0.27
17.13
3.00
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
4.88
10.22
6.85
1.75
5.15
10.77
6.78
1.89
5.14
11.22
6.96
2.13
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
14%
2%
12%
13%
1%
12%
15%
2%
14%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
3.91
4.89
1.73
8%
5.26
53
136
3.59
4.76
1.79
9%
4.61
51
123
3.27
4.30
2.18
11%
3.93
46
118
The increase in revenues in FY 2014 by ~10% was driven by increase in from

garment and fabric sales with sales from yarn remaining almost flat. The
overall exports were also flat during FY 2014, though the exports of fabric and
garments had increased during the year.
The company incurred capex of Rs. 0.53 billion in FY 2014 towards addition of
30 looms, increase in garmenting capacity and addition of balancing
equipments in the processing unit. In FY 2015, the company plans to incur
capex of ~Rs. 0.25 billion which would be towards increase in the garmenting
capacity and addition of balancing equipments in dyeing and spinning units.
80.9
1.3
88.9/44
3M
12M
2%
80%
4%
38%
4%
39%
BSL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
100
90
80
70
60
50
40
30
20
10
0
Oct-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Sep-14
^ mmpa Million meter per annum, MW Mega Watt
Jul-14
Kalani & Company
Price Performance
Aug-14
Auditors
For FY 2014, the synthetic yarn production stood at 30.1 million Kg (YoY
decline of 3%). The fabric production stood at 36 mn meter which was similar
to that in FY 2013. The garment production was up by 28% in FY 2014 and
stood at 3.26 million pcs. The power requirements of the manufacturing units
located at Banswara are almost met entirely through captive power plant of
33MW, which operated at Plant load factor of ~98.1% during FY 2014.
55.23%
13.58%
0.03%
19.08%
12.08%
Jun-14
The company also has one joint venture, Treves Banswara Pvt. Ltd, which
produces laminated knitted and woven textiles for internal furnishing of
buses, trains and automobiles.
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Apr-14
Chairman
Mr. R. S. Toshniwal
Managing Director
Mr. R. K. Toshniwal
Bankers
BOB, BOI, PNB, Union Bank of India
May-14
6%
12.12
NA
NA
NA
Mar-14
Others
Total (Rs billion)
BSL is an integrated textile player with presence in manufacturing of blended,

wool & cotton spun yarn, fabric (including technical fabric) and readymade
garments. While the spinning, weaving and processing capacities of BSL are
located in Banswara Rajasthan, its garmenting facilities are located across four
units in Daman and one unit in Surat (Gujarat).
Long Term
Short Term
Outlook
Jan-14

Yarn
37%
Fabric
41%
Garments
15%
ICRA Ratings
Feb-14
Spinning
152,264 spindles
Weaving
413 looms
Processing
11,880 MT p.a.
50.0 mmpa ^
Garmenting
4.5 Mn pcs p.a.
Power
33 MW^
Banswara Syntex (BSL) was initially incorporated as a joint venture company

between Rajasthan State Industrial Development & Investment Corporation
Ltd. (RIICO) and Mr. R.S. Toshniwal with its manufacturing facilities located at
Banswara in state of Rajasthan. Later in 1982, Mr Toshniwal purchased the
entire stake of RIICO.
Dec-13
1976
Rajasthan, Daman
Domestic
57%
Gujarat
Exports
43%
Nov-13
ACML
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price- Rs/share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
2.78
0.37
0.07
13%
3%
1.80
Q2 FY13
2.67
27%
0.37
0.03
14%
1%
1.81
Q3FY13
2.55
9%
0.36
0.04
14%
1%
1.86
Q4FY13
2.63
30%
0.36
0.02
14%
1%
1.70
Q1FY14
3.12
12%
0.38
0.03
12%
1%
1.79
Q2FY14
2.83
6%
0.38
0.04
13%
1%
1.74
Q3 FY14
3.06
20%
0.45
0.07
15%
2%
2.26
Q4 FY14
3.27
24%
0.47
0.08
14%
2%
2.44
Q1 FY15
3.00
-4%
0.40
0.05
13%
2%
2.02
ICRA LIMITED
P a g e | 24
DAMODAR INDUSTRIES LIMITED
0.85
2.29
1.39
0.73
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
9%
2%
16%
8%
2%
22%
8%
2%
22%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.20
2.51
1.96
13%
3.21
35
53
2.17
2.44
2.26
17%
2.71
35
36
1.90
2.15
2.43
19%
2.42
38
27
Owing to high share of the trading volumes, the profit margins have remained
modest and at similar levels as against sharp improvement witnessed by other
industry players in FY 2013 and FY 2014.
80
70
60
50
40
30
20
10
0
Sep-14
0.87
2.08
1.31
0.60
Stock Movement
Jul-14
0.77
1.77
1.11
0.50
As against 49% of revenues from trading sale (~Rs 2.86 billion) in total
revenues of Rs 5.82 billion in FY 2013; the trading sales increased to Rs 3.88
billion (~53% of revenues) in FY 2014 leading to strong revenue growth. The
revenues from sale of in-house manufactured yarn increased from Rs 2.97
billion to Rs 3.46 billion, which is a growth of ~17%.
DIL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Aug-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The revenues of DIL have witnessed strong growth in FY 2014 by 26%,

however majority of the revenue growth was driven by increase in trading
activity which had increased by 36%.
52.0
0.5
70.25/44.3
3M
12M
-13%
15%
4%
38%
4%
39%
Jun-14
FY 14
7.35
26%
0.57
0.24
0.15
16.60
2.40
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Apr-14
FY 13
5.82
48%
0.48
0.21
0.12
13.68
2.00
Price Performance
May-14
FY 12
3.92
2%
0.35
0.18
0.06
6.67
1.60
67.28%
0.00%
0.01%
27.43%
5.28%
Mar-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Jan-14
A. J. Baliya & Associates
Feb-14
In FY 2012, DIL had started manufacturing fabric on outsourcing basis and in

the same year had also started a FMCG division wherein it sells the products
under the brand Calves N Leaves.
NA
NA
NA
Dec-13
Chairman
Mr. Arun Kumar Biyani
Managing Director
Mr Ajay D. Biyani
Bankers
BOB,SBI, UBI, ING Vysya Bank
DIL is mainly engaged in manufacturing of yarn (both cotton and blended) and
derives almost its entire revenue from the spinning activities. The company
has four manufacturing units out of which three are in Dadra & Nagar Haveli and
one is in Daman. A significant proportion of the yarn production is exported and
share of exports in overall revenues stood at 68% during FY 2014. The exports
were up by ~26% during FY 2014.
Long Term
Short Term
Outlook
Oct-13

Yarn
98%
Fabric
2%
Garments
Others
Total (Rs billion)
7.35
Damodar Industries Limited (DIL) was initially incorporated at Damodar

Threads Limited (DTL) in 1987 and is promoter by Mr Arun Biyani and his
brothers. In FY 1993, the company came out with an IPO and in FY 2013 the
name of the company was changed to DIL from DTL.
Nov-13
1987
Daman
Domestic
32%
Dadra & Nagar Haveli Exports
68%
Spinning
Not Available
Weaving
Processing
Garmenting
Retailing
-
Auditors
ICRA Ratings
ACML
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1FY13
1.31
0.11
0.04
9%
3%
2.44
Q2Y13
1.25
24%
0.11
0.03
9%
3%
2.29
Q3FY13
1.41
42%
0.11
0.03
8%
2%
1.96
Q4FY13
1.85
64%
0.15
0.03
8%
2%
2.39
Q1FY14
1.70
29%
0.15
0.05
9%
3%
2.75
Q2FY14
1.89
51%
0.16
0.05
9%
3%
3.00
Q3FY14
1.85
31%
0.12
0.03
7%
2%
2.27
Q4FY14
1.92
3%
0.13
0.02
7%
1%
1.88
Q1FY15
1.51
-11%
0.13
0.03
9%
2%
2.19
ICRA LIMITED
P a g e | 25
DEEPAK SPINNERS LIMITED

ACML
1982
H.P., M.P.

Domestic
92%
Exports
8%
Spinning
76,752 spindles
Weaving
Processing
Garmenting
Retailing
-

Yarn
99%
Fabric
Garments
Others
1%
Total (Rs billion)
3.92
Mr Pradip Kumar Daga
Bankers
SBI
Auditors
M/s Singhi & Company
Deepak Spinners Limited (DSL) is promoted by Mr P.K. Daga and it

commenced its operations in 1986 from its unit located at Baddi in Himachal
Pradesh. The company is headquartered in Kolkata with administrative office
in Chandigarh.
The Baddi unit commenced its operations with 14,000 spindles with a dye
house and later in FY 1991, the second manufacturing unit in Guna district of
Madhya Pradesh with an initial capacity of 8,000 spindles was commissioned.
The company current has an installed capacity of 76,752 spindles across the
two manufacturing units. The company is planning to increase the spinning
capacity by 14,000 spindles along with setting up of a dyeing unit with a
capacity of 25 MT per day at a total investment of ~Rs. 0.88 billion, for which
the financial closure is currently underway.
ICRA Ratings
Long Term
Short Term
Outlook
NA
NA
NA

Promoters
FIIs
DIIs
Public: Individuals
Public: Others
41.06%
0.00%
4.58%
51.54%
2.82%
Price Performance

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
1.15
1.77
2.43
22%
3.14
31
57
1.67
2.22
4.08
17%
3.90
39
52
1.68
2.36
3.52
16%
3.26
35
62
20
10
0
Sep-14
11%
3%
18%
30
Jul-14
10%
4%
19%
40
Aug-14
8%
3%
14%
50
Jun-14
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
Unlike cotton spinning companies which typically stock cotton during the
cotton harvest season for use during the remaining period, synthetic spun
yarn manufactures do not require to main huge fiber stock due to regular
availability during the year. Due to limited raw material inventory holding, the
profitability margins of DSL were steady in FY 2012 unlike that of cotton
spinning companies who had incurred huge inventory losses in that year.
Apr-14
1.58
2.77
1.38
0.82
60
May-14
0.95
2.28
1.18
0.71
Stock Movement
Mar-14
0.71
1.60
0.66
0.58
42.0
0.3
53.2/31.05
3M
12M
-1%
27%
4%
38%
4%
39%
DSL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Jan-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The yarn production during FY 2014 stood at 25.31 million Kg as against 19.20
million Kg in FY 2013, thereby resulting in a volume growth of ~32%, which
was driven by the expansion cum modernization undertaken by the company
in FY 2014.
Feb-14
FY 14
3.92
28%
0.42
0.12
0.12
16.01
0.00
Dec-13
FY 13
3.07
10%
0.30
0.07
0.13
18.07
0.00
Oct-13
FY 12
2.80
10%
0.21
0.09
0.08
10.58
0.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Nov-13
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
The company manufactures polyester, viscose and acrylic spun yarn. Owing to
limited competitiveness of man-made yarn manufacturers in export market
(due to adverse cost structures) the share of export in overall revenues has
remained low at ~8% during FY 2014.
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1FY13
0.68
0.05
0.01
8%
2%
2.95
Q2Y13
0.87
7%
0.06
0.02
6%
3%
3.42
Q3FY13
0.81
21%
0.11
0.05
13%
6%
5.51
Q4FY13
0.72
8%
0.08
0.04
12%
6%
4.27
Q1FY14
0.84
25%
0.10
0.04
11%
5%
4.78
Q2FY14
1.09
25%
0.15
0.05
13%
4%
4.52
Q3FY14
1.02
26%
0.13
0.04
12%
4%
3.93
Q4FY14
0.97
35%
0.06
-0.01
6%
-2%
1.55
Q1FY15
1.12
32%
0.10
0.02
9%
2%
2.51
ICRA LIMITED
P a g e | 26
GINNI FILAMENTS LIMITED

ACML
1982
UP, Gujarat
Uttarakhand

Domestic
39%
Exports
61%
Spinning
89,808 spindles
1680 rotors
Weaving
41 machines
Processing
3600 TPA
Garmenting
3 lac pieces pm
Non woven
12,000 TPA

Yarn
53%
Fabric
Garments
Others
Total (Rs billion)
23%
16%
9%
8.74
Chairman
Dr. Rajaram jaipuria
Managing Director
Mr. Shishir Jaipuria
Bankers
SBI, BoB, SBBJ, Federal Bank, UCO Bank
Auditors
P.L. Gupta & Co
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Net Fixed Assets
Total Assets
Total Debt
Tangible Net worth
FY 12
7.12
3%
-0.04
0.44
-0.44
-6.18
0.00
2.97
5.24
3.98
0.83
FY 13
7.45
5%
0.94
0.44
0.18
2.48
0.00
2.82
5.76
3.90
1.00
FY 14
8.68
17%
1.18
0.38
0.36
5.13
0.00
2.75
6.06
3.51
1.37
Incorporated in 1982, Ginni Filaments Ltd (GFL) has been promoted by

Jaipuria Family having business interests in textiles and education sector. GFL
commissioned 26,208 spindles in 1990 as 100% export oriented unit to
produce combed cotton yarn with manufacturing plant in district Mathura,
Uttar Pradesh. Over the last decade, the company has entered into value
added products like processed knitted fabric, garmenting (September 2006)
in addition to expanding the spinning capacities. Since GFL has presence from
fiber to garment, part of the yarn manufactured is consumed in-house by the
knitting division and some portion of knitted fabric produced is consumed by
its garmenting division. In addition, the company has also diversified its
product portfolio by setting up manufacturing facilities for producing nonwoven (NW) fabric (March 2007) and value added consumer products like
baby wipes, surgical gowns etc. The facility is capable of producing spun-lace
fabric made of viscose polyester blends, 100% polyester, 100% viscose and
cotton enriched blends etc. With non-woven fabric, GFL primarily caters to
the personal products industry with most its output being exported and
getting consumed for manufacturing of wipes. In addition to the contract
manufacturing for established brands for wipes, GFL has launched its own
brands for baby, beauty and home care range of wipes. Overall, the product
profile of GFL is diversified but majority of its revenues still emanate from the
commodity products like yarn and non-woven fabric. The revenue
contribution of from high value added products like garments and wipes still
remain low.
ICRA Ratings
Long Term
Short Term
Outlook
[ICRA] BB+
A4+
Stable

Promoters
FIIs
DIIs
Public: Individuals
Public: Others
61.54%
0.01%
4.55%
30.92%
2.98%
Price Performance
Closing Price (Rs.)
Market Cap (bn)
52W H/L (Rs.)
12.6
0.9
18.37/7.03
3M
12M
-18%
80%
4%
38%
4%
39%
GFL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
20
GFL came out with a public offer of ~Rs. 0.55 billion equity shares in
December 2005 for part funding the expansion and diversification projects.
GFL was referred to CDR cell in February 2009 following large losses in
FY2008 and FY2009 on account of losses in yarn division, high leverage on
account of debt funded capex undertaken and forex losses.
18
16
14
Rs/Share
Fact Sheet
Incorporation
Plant Location
12
10
8
6
4

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
2.57
3.69
3.14
17%
2.97
34
89
May-14
3.89
5.20
2.12
11%
4.17
38
97
Mar-14
4.80
5.95
-0.10
-5%
-92.56
27
70
Jan-14
14%
4%
18%
Feb-14
13%
2%
15%
Dec-13
-1%
-6%
-4%
Oct-13
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
Nov-13
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.73
0.22
0.03
13%
2%
1.78
Q2 FY13
1.85
1%
0.23
0.03
13%
2%
2.00
Q3FY13
1.88
2%
0.23
0.05
12%
3%
2.31
Q4FY13
2.00
12%
0.27
0.07
13%
3%
2.67
Q1FY14
1.93
12%
0.28
0.11
14%
6%
2.77
Q2FY14
2.21
20%
0.37
0.14
17%
6%
3.97
Q3 FY14
2.33
24%
0.31
0.10
13%
4%
3.81
Q4 FY14
2.28
14%
0.31
0.01
13%
1%
2.95
Q1 FY15
2.15
11%
0.24
0.04
11%
2%
1.97
ICRA LIMITED
P a g e | 27
GTN INDUSTRIES LIMITED
FY 13
4.22
11%
0.20
0.21
-0.16
-9.29
0.00
FY 14
5.62
33%
0.32
0.24
-0.01
-0.47
0.00
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
1.51
2.91
1.98
0.42
1.43
2.97
2.05
0.26
1.36
2.81
1.99
0.35
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
4%
-2%
1%
5%
-4%
0%
6%
0%
8%
GIL is planning to hive off its loss making processing and knitting division to
one of the group company, GTN Engineering Ltd. and is in the process of
obtaining the various requisite approvals for the same.
The company had incurred huge loss in FY 2008-09 and consequently
restructured its debt under the CDR which was approved in June 2009 with
the cut off date of January 2009. The performance of the company had
however continued to remain weak and the debt was restructured again in FY
2012-13 with cut-off date of July 2012.
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
12.7
0.2
16.35/6.75
3M
12M
-3%
83%
4%
38%
4%
39%
GTNIL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
18
16
14
12
10
8
6
4
2
0
Sep-14
FY 12
3.80
-5%
0.16
0.17
-0.09
-5.23
0.00
Price Performance
Jul-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
GIL focuses on value added cotton yarn such as compact, gassed, mercerized,
dyed and TFO (Two for One) yarn in medium, fine and super-fine count range
and in addition to the in-house production, is also engaged in yarn trading (of
coarser count yarn) which accounted for ~39% of the total sales of the
company in FY 2014 (~26% in FY 2013). Most of the sales had been in the
export markets which had accounted for ~60% of the total sales of the
company over the last five years.
Aug-14
Lodha & Company
Jun-14
Auditors
74.64%
-0.52%
22.35%
2.49%
Apr-14
CBI, SBI, IDBI, Exim Bank, ING Vysya, SBoT
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
Bankers
Mar-14
Mr. M.K. Patodia
[ICRA] C+
[ICRA] A4
NA
Jan-14
Long Term
Short Term
Outlook
Feb-14

Yarn
56%
Fabric
Garments
Others
44%
Total (Rs billion)
5.62
ICRA Ratings
Dec-13
Spinning
85,000 spindles
Knitting
5.8 TPD
Processing
10 TPD
Garmenting
Retailing
-
GTN Industries Limited (GIL) was incorporated in 1962 by Mr. M.L. Patodia
and is the flagship company of the Hyderabad based GTN Industries Group.
GIL is primarily engaged in manufacturing of cotton yarn with an installed
capacity of 85,000 spindles across two spinning mills at Medak (Andhra
Pradesh) and Nagpur (Maharashtra). GIL is also engaged in trading and
processing of yarn, apart from carrying out knitting operations on a small
scale. The companys yarn processing (mercerising-cum-dyeing) unit, with a
capacity of 10 tpd, is located at Mahaboobnagar (Andhra Pradesh). GILs
knitting facility is located in Medak (Andhra Pradesh) with a capacity of 5.8
tpd and mainly caters to the captive requirement for garment manufacturing
in the group companies The GTN Industries Group is also engaged in
manufacturing of API valves through the group company, GTN Engineering
(India) Limited.
Nov-13

Domestic
38%
Exports
62%
Rs/Share
1962
Andhra Pradesh
Maharashtra
Oct-13
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
4.67
5.86
0.92
3%
12.67
18
95
7.87
10.37
0.93
-1%
10.27
38
74
5.65
10.12
1.35
7%
6.15
18
54
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
0.89
0.04
-0.04
4%
-4%
0.70
Q2 FY13
0.88
-6%
0.03
-0.06
4%
-6%
0.59
Q3FY13
1.05
1%
0.03
-0.06
3%
-5%
0.60
Q4FY13
1.40
58%
0.10
0.00
7%
0%
1.84
Q1FY14
1.10
24%
0.03
-0.05
3%
-5%
0.61
Q2FY14
1.52
73%
0.09
0.00
6%
0%
1.66
Q3 FY14
1.58
51%
0.09
0.00
6%
0%
1.67
Q4 FY14
1.41
0%
0.10
0.04
7%
3%
1.49
Q1 FY15
1.19
7%
0.06
-0.02
5%
-2%
1.01
ICRA LIMITED
P a g e | 28
K.P.R. MILL LIMITED
13.39
21.15
10.08
7.06
12.56
22.14
9.62
8.15
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
14%
3%
7%
23%
6%
16%
18%
6%
16%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
1.29
1.83
3.73
17%
4.46
40
65
1.43
2.06
3.95
25%
2.60
35
106
1.18
1.77
4.04
31%
2.28
37
79
400
350
300
250
200
150
100
50
0
KPR is increasing its garmenting capacity by ~50% which shall be completed by

by end of FY 2015.
Consolidated(Rs.billion)
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
3.26
0.79
0.17
24%
5%
3.42
Q2 FY13
3.90
16%
1.04
0.38
27%
10%
4.90
Q3FY13
4.04
47%
0.91
0.24
23%
6%
4.09
Q4FY13
5.53
66%
1.12
0.24
20%
4%
3.60
Q1FY14
4.84
48%
1.06
0.28
22%
6%
3.42
Sep-14
10.91
17.16
8.02
6.23
Stock Movement
Jul-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
KPRML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Aug-14
FY 14
23.71
42.43%
4.22
1.05
1.42
37.25
7.00
Jun-14
FY 13
16.65
31.55%
3.87
0.98
1.03
27.06
6.00
311.6
11.7
340.25/104.7
3M
12M
28%
95%
4%
38%
4%
39%
Apr-14
FY 12
12.65
14.27%
1.80
0.48
0.33
8.42
5.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
May-14
Consolidated (Rs. billion)

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
In addition to meeting the in-house requirements, the products at each stage

of the textile chain such as yarn and fabric are also sold in the domestic and
export markets. The company manufactures cotton yarn in the medium count
range and also manufactures value add yarn such as compact and mlange
yarn. Out of the total capacity of 353,088 spindles which can produce 90,000
MT of yarn per annum, 100,000 spindles are used for manufacture compact
yarn and 16,128 spindles are used for manufacturing of mlange yarn. The
melange yarn unit was set up in FY 2012-13 and compact yarn unit was set up
in FY 2011-12. Though company sells yarn in various domestic and export
markets, most of the yarn sales are in the Tirupur region (Tamil Nadu) which is
the hub for hosiery garment exports. The knitted garments are primarily
exported to buyers in Europe and USA and a significant proportion of garment
exports are through its wholly owned subsidiary, Quantum Knits Private
Limited.
Mar-14
Deloitte Haskins & Sells
74.96%
1.16%
10.17%
12.04%
1.67%
Price Performance
Jan-14
Auditors
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Feb-14
Chairman
Mr. K.P. Ramasamy
Managing Director
Mr. KPD Sigamani, Mr. P. Nataraj
Bankers
BOB, BOI, Corporation Bank, IDBI, OBC, Andhra Bank,
SBM, ICICI, Karnataka Bank, UBI
NA
NA
NA
Dec-13
Spinning
353,088 spindles
Yarn
48%
Weaving
58 TPD
Fabric
14%
Processing
25 TPD
Garments
16%
Garmenting 63 million pcs p.a.
Others
22%
Retailing
Total (Rs billion)
23.81
Long Term
Short Term
Outlook
Oct-13

Domestic
72%
Exports
28%
ICRA Ratings
Nov-13
2003
Tamil Nadu
K.P.R. Mill Limited (KPR) was incorporated in 2003 and is promoted by three
brothers, Mr. K.P.Ramasamy, Mr. K.P.D.Sigamani and Mr. P.Nataraj. KPR is a a
vertically integrated textile company with presence across the textile value
chain from manufacturing of cotton yarn to garments. The company has six
manufacturing units in Tamil Nadu, out of which 3 are spinning mills, one is
garmenting unit, one is processing unit and one is integrated unit from
spinning to garmenting. The company also has captive wind power generation
capacity of 61.92MW in Tamil Nadu which met ~50% of the power
requirements of its manufacturing units in FY 2014 (~75% in FY 2013). The
company has set up a 5,000 TCD (Tons of cane crushed per day) sugar mill
along with 30MW of cogeneration capacity in Karnataka through its wholly
owend subsidiary, K.P.R. Sugar Mill Limited, which commenced production
from November 2012. With the comissioning of the cogen cum sugar mill, the
total captive power capacitty is sufficient to meet the entire power
requirements of the company, which shall support high capacity utilization,
given the power shortage in the state.
Rs/Share
Fact Sheet
Incorporation
Plant Location
ACML
Price - Rs/Share
Q2FY14
6.84
75%
1.16
0.35
17%
5%
4.41
Q3 FY14
5.73
42%
0.99
0.25
17%
4%
3.91
Q4 FY14
6.32
14%
1.01
0.54
16%
9%
4.63
Q1 FY15
5.94
23%
1.09
0.39
18%
7%
4.99
ICRA LIMITED
P a g e | 29
MAHARAJA SHREE UMAID MILLS LIMITED
FY 12
4.27
-1%
0.09
0.09
0.10
158.06
5.00
FY 13
5.10
20%
0.79
0.14
0.33
12.61
2.50
FY 14
4.77
-7%
0.67
0.26
0.20
7.60
1.00
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
1.15
9.16
1.14
6.38
2.15
5.26
2.05
1.23
2.32
5.75
2.39
1.39
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
2%
2%
4%
15%
6%
12%
14%
4%
14%
0.18
0.33
0.93
19%
13.21
37
93
1.67
2.75
5.67
26%
2.61
40
82
1.72
2.65
2.57
21%
3.58
46
124

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
The company is planning to undertake capex of ~Rs. 1.5 billion towards

increasing the weaving capacity and modernization of the existing spinning
and processing capacities.
In March 2011, pursuant to the agreement entered with International Paper
Company, MSUML, as part of the promoter group, had sold its entire (21%)
shareholding in Andhra Paper Mills Limited for total receipt of Rs.5.6 billion. The
total amount was realized in the second half of FY 2012 and post tax income of
about Rs. 4.0 billion was realized. The funds mobilized on account of this inflow
were allocated to the investment division which has been subsequently demerged
into Kiran Vyaapar Ltd. w.e.f. April 1, 2012.
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
97.6
2.5
130.7/61.45
3M
12M
-12%
10%
4%
38%
4%
39%
MSUML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
140
120
100
80
60
40
20
0
Sep-14

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Price Performance
Jul-14
BD Gargieya & Company
74.81%
0.00%
0.00%
5.25%
19.94%
Aug-14
Auditors
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Jun-14
BOB, ICICI, IDBI, SBBJ
In FY 2014, MSUML produced 21,452 MT yarn against 24,107 MT produced in

FY 2013. A part of the companys yarn production (around ~20% of total
production compared to ~10% in the previous year) is consumed in-house to
manufacture poplin, which is relatively a lower value added low-end fabric in
which MSUML enjoys market leadership position and also for bottom wear
fabric in the newly commissioned facility (bottom wear accounts for ~33% of
the total weaving capacity). Going forward, the in-house consumption of yarn
is set to increase further as the company is planning to add the weaving
capacity for the bottom wear fabric. In FY 2014, MSUML produced 30.6
million metre fabric against 25.4 million metre produced in FY 2013. The
company also has a wind power generation capacity of 17.45 MW, for which it
has entered into Power Purchase Agreement for a period up to March 2016
with RSEB.
Apr-14
Bankers
35%
4%
4.77
May-14
Fabric
Garments
Others
Total (Rs billion)
Mar-14
Mr. L.N. Bangur
61%
Jan-14
Chairman and Managing Director
Yarn
[ICRA] BBB
[ICRA] A3+
Stable
Feb-14
Long Term
Short Term
Outlook
Dec-13
Spinning
109,344 spindles
2,256 rotors
Weaving
590 looms
Processing
Wind power
17.45 MW
Garmenting
-
The company produces various types of yarns which include cotton combed
yarn, cotton carded yarn and Open Ended (OE) yarn apart from high value
added compact and eli-twist yarns. The company has been gradually shifting
capacities to more value added products like compact/eli-twist yarn.
ICRA Ratings
Oct-13

Domestic
88%
Exports
12%
MSUML was incorporated in 1939 and is the flagship company of L N Bangur

Group. The company is engaged in manufacturing of cotton yarns and cotton
fabric at its composite textile mill in Pali District in the state of Rajasthan.
Nov-13
1939
Rajasthan
ACML
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price- Rs/share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.19
0.14
0.06
12%
5%
4.80
Q2 FY13
1.17
12%
0.16
0.08
14%
7%
6.28
Q3FY13
1.26
14%
0.22
0.14
18%
11%
9.24
Q4FY13
1.49
30%
0.27
0.16
18%
11%
11.89
Q1FY14
1.12
-6%
0.20
0.09
17%
8%
4.07
Q2FY14
1.09
-6%
0.20
0.07
18%
6%
5.72
Q3 FY14
1.34
7%
0.20
0.04
15%
3%
2.97
Q4 FY14
1.21
-19%
0.07
0.05
6%
4%
1.05
Q1 FY15
1.21
7%
0.10
-0.03
8%
-2%
1.34
ICRA LIMITED
P a g e | 30
MARAL OVERSEAS LIMITED
1.85
3.40
2.33
0.57
1.65
3.63
2.16
0.87
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
6%
0%
8%
10%
4%
17%
12%
5%
17%
6.81
68.55
1.18
7%
7.69
26
51
4.07
11.83
2.52
18%
4.09
24
70
2.49
5.48
4.33
31%
2.68
20
91

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
MOL(%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
35
30
25
20
15
10
5
0
Sep-14
1.97
3.34
2.43
0.36
22.9
1.0
29.0/16.35
3M
12M
1%
30%
4%
38%
4%
39%
Jul-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The debt of MOL was restructured in FY 2009 due to weakening of the financial
profile on account of past debt funded capital expenditure, subdued demand due
to global slowdown, increase in cotton prices and derivative losses. Under the
CDR, a part of the term loan was also converted into preference shares (Rs. 17.00
crore), besides reduction in interest rates, rescheduling of debt repayments and
conversion of interest payable into funded interest term loan.
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
FY 14
6.53
17%
0.81
0.19
0.29
6.65
0.00
Price Performance
Jun-14
FY 13
5.59
4%
0.57
0.23
0.24
5.29
0.00
74.95%
0.01%
0.00%
19.74%
5.30%
Apr-14
FY 12
5.36
5%
0.32
0.27
-0.02
-0.83
0.00
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
The company manufactures 100% cotton yarn including value added yarn such as
slub yarn, compact yarn, reverse twist yarn and double yarn in counts ranging
from Ne 10 to Ne 40. Around 25% of the yarn production is consumed in-house by
the knitting unit which manufactures cotton and blended fabric in GSM ranging
from 120 to 350 in multiple knits. In additoin, ~27% of the fabic is also consumed
in-house by the garmenting division. Exports account for most of the sales of the
company (57% in FY 2014) with the major export markets being Far East & South
East Asia (53% of total exports) and Europe (27% of total exports).
Mar-14
Doogar & Associates, Ashim & Associates
NA
NA
NA
Jan-14
Auditors
Long Term
Short Term
Outlook
Feb-14
Chairman
Mr. Ravi Jhunjhunwala
Managing Director
Mr. Shekhar Agarwal
Bankers
Axis, BoB, Central Bank, Canara Bank, EXIM, IDBI,
IndusInd, SBH, SBBJ, SBI, SBoP, J&K Bank , Yes Bank
MOL commenced production in 1992 with 20,160 spindles in Khargone (near

Indore in Madhya Pradesh) and has over the years expanded the spindleage
capacity and also forward integrated into knitting, processing and garmenting. The
company has two manufacturing units, one in Madhya Pradesh (spinning, knitting
and processing) and another in Noida, Uttar Pradesh (garmenting). The company
also has a 10MW captive thermal power plant at its manufacturing unit in Madhya
Pradesh which meets most of its power requirement in the unit (~90% of the total
power requirement of the company is met through captive power generation).
ICRA Ratings
Dec-13
Spinning
75,600 spindles
Yarn
47%
Weaving
5,400 TPA of knitted Fabric
24%
fabric
Processing
5,229 TPA of fabric
Garments
17%
Garmenting 4.8 million pcs p.a.
Others
12%
Retailing
Total (Rs billion)
6.53
Maral Overseas Limited (MOL) was incorporated in 1989 and is a vertically

integrated textile company with presence from spinning to garmenting. MOL is
part of the LNJ Bhilwara Group which besides textiles, is also present in sectors
such as graphic electrodes and power generation. The other textile companies in
the group are the flagship company, RSWM Ltd. which is engaged in
manufacturing of yarn, suiting and denim fabric and BSL Limited which is engaged
in manufacturing of suiting & shirting fabric.
Nov-13

Domestic
43%
Exports
57%
Rs/Share
1989
M.P., U,P.
Oct-13
ACML
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.42
0.14
0.04
10%
3%
1.97
Q2 FY13
1.35
2%
0.14
0.05
10%
4%
2.20
Q3FY13
1.40
3%
0.15
0.06
11%
4%
2.66
Q4FY13
1.41
6%
0.14
0.08
10%
6%
3.94
Q1FY14
1.53
8%
0.18
0.09
12%
6%
3.38
Q2FY14
1.76
30%
0.25
0.11
14%
6%
5.14
Q3FY14
1.68
20%
0.19
0.11
11%
6%
4.36
Q4 FY14
1.56
10%
0.19
-0.02
12%
-1%
4.61
Q1 FY15
3.16
107%
0.55
0.16
17%
5%
2.28
ICRA LIMITED
P a g e | 31
NAHAR INDUSTRIAL ENTERPRISES LIMITED

ACML

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
1.72
1.96
3.07
17%
3.40
42
158
70
60
50
40
30
20
10
To diversify the product portfolio, the company is setting up a 100 kilo liter
per day grain based distillery at an investment of ~Rs. 1.1 billion which is
expected to be completed by Q1 FY 2016.
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
3.80
0.56
0.05
15%
1%
1.84
Q2 FY13
4.19
29%
0.56
0.06
13%
2%
1.88
Q3FY13
4.68
38%
0.78
0.07
17%
1%
2.81
Q4FY13
4.43
24%
1.06
0.24
24%
5%
3.48
Q1FY14
4.51
19%
0.90
0.23
20%
5%
2.88
0
Sep-14
2.08
2.35
2.26
13%
4.05
36
182
80
In addition to the textile segment which account for most of the revenues of
the company, the company is also present in the sugar segment and produced
412,720 quintals of sugar in FY 2014 which was higher by ~3% over the
previous year.
Jul-14
2.03
2.30
0.67
0%
16.67
40
149
90
Aug-14
18%
4%
12%
Stock Movement
Jun-14
17%
2%
12%
NIEL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Apr-14
5%
-6%
0%
59.4
2.4
81.7/50.3
3M
12M
-20%
14%
4%
38%
4%
39%
May-14
7.35
18.95
11.05
6.41
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Mar-14
7.66
19.30
11.99
5.76
67.62%
0.00%
1.28%
29.33%
1.77%
Price Performance
Jan-14
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
6.55
17.80
10.95
5.39
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Feb-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The spinning division of NIEL produced 70,595 MT yarn in FY2014 which was
~4% higher than that in FY2013. Further, being an integrated mill, part of the
spinning division output is consumed by the fabric division which is then
processed. The weaving division produced 72.9 mn mtr of fabric during
FY2014 against 74.4 mn mtr in FY2013.
[ICRA] A[ICRA] A2+

Stable
Dec-13
Chairman
Mr. Jawahar Lal Oswal
Managing Director
Mr. Kamal Oswal
Bankers
SBoP, PNB, Punjab & Sind Bank, IOB, Corporation Bank,
Canara Bank, Allahabad Bank, SBI, IDBI Bank
Auditors
Raj Gupta & Co
FY 12
FY 13
FY 14
Operating Income
14.08
17.10
18.50
YoY Growth (%)
13%
21%
8%
OPBDIT
0.66
2.96
3.25
Interest Charges
0.97
1.31
1.06
PAT
-0.81
0.42
0.69
Earnings per Share
-20.27
10.50
17.38
Dividend per Share
0.00
1.00
1.00
Long Term
Short Term
Outlook
Nov-13
Spinning
271,104 spindles
Yarn
51%
7832 rotors
Weaving
509 looms
Fabric
39%
Processing
13 TPD yarn dyeing
Sugar
6%
58.4 mn mtrs fabric
Garmenting
NA
Others
4%
Retailing
NA
Total (Rs billion)
18.50
ICRA Ratings
Rs/Share
1983
Punjab, Rajasthan
Domestic
87%
Exports
13%
Nahar Industrial Enterprises Limited is a part of the Ludhiana (Punjab) based

Nahar Group, one of the oldest textile groups in the country. NIEL was
established in 1983 as Oswal Fats and Oils Ltd and over the years, other group
companies like Nahar Fabrics, Oswal Cotton Mills, Nahar International
engaged in textile chain and a sugar manufacturing company, Nahar Sugar &
Allied Industries was merged with NIEL. With the merger of group companies,
NIEL has emerged as an integrated textile player with a presence across
spinning, weaving and fabric processing. NIEL also had presence in garment
manufacturing and retailing business which was transferred into associate
company, Cotton County Retail Limited (formerly Nahar Retail Limited). The
company also has 59MW power plants including 16 MW cogeneration power
plant in the sugar unit. Within yarn, the company offers wide variety of yarns
including 100% cotton, 100% polyester, open end yarns, cotton core spun
yarn, slub yarn, compact yarn, elitist yarn, compact yarn, dyed yarn etc. In the
fabrics segment, NIEL offers, piece dyed, yarn dyed, printed, performance
fabrics in various blends having end use in apparels including uniform & work
wear and home furnishing.
Oct-13
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Q2FY14
4.46
7%
0.88
0.23
20%
5%
3.32
Q3 FY14
4.66
0%
0.83
0.21
18%
4%
3.68
Q4 FY14
4.86
10%
0.64
0.02
13%
0%
2.49
Q1 FY15
4.90
9%
0.55
-0.05
11%
-1%
1.97
ICRA LIMITED
P a g e | 32
NAHAR SPINNING MILLS LIMITED
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
8.38
18.70
12.08
5.49
8.02
20.15
12.27
6.22
9.00
21.74
11.59
7.63
1%
-7%
-3%
16%
4%
14%
16%
7%
15%
2.20
2.41
0.14
-3%
76.19
82
107
1.97
2.24
2.97
13%
3.81
69
153
1.52
1.85
5.02
20%
3.25
68
125
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
The company is undertaking expansion cum modernization of its spinning

capacity which involves addition of 60,000 spindles out of which 52,848
spindles have already been installed and the remaining spindles are expected
to be installed by FY 2015.
During FY06, the company entered into a scheme of demerger and
arrangement with Nahar Exports (now known as Nahar Poly Films) and Nahar
Capital and Financial Services (NCF). As per the arrangement, Nahar Exports
textile business was demerged and transferred to NSML and the investment
business of NSML was demerged and transferred to NCF.
NSML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
200
180
160
140
120
100
80
60
40
20
0
Sep-14
FY 14
22.04
12%
3.57
0.71
1.45
40.29
1.00
92.5
3.3
173.8/88.6
3M
12M
-33%
4%
4%
38%
4%
39%
Jul-14
FY 13
19.61
16%
3.22
1.09
0.78
21.59
1.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
FY 12
16.97
22%
0.16
1.14
-1.17
-32.50
0.00
Price Performance
Jun-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
64.83%
-0.03%
29.81%
5.33%
Apr-14
Chairman
Mr. Jawahar Lal Oswal
Managing Director
Mr. Dinesh Oswal
Bankers
PNB, SBI, SBoP, OBC, Canara Bank, IDBI
Allahabad Bank
Auditors
M/s. Gupta Vigg & Co
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
0%
10%
12%
22.04
Mar-14
Fabric
Garments
Others
Total (Rs billion)
Jan-14

Yarn
78%
NA
NA
NA
Feb-14
Spinning
485,104 spindles
1080 rotors
Weaving
Processing
4.5 TPD
Garmenting
12.5 mn pcs p.a.
Retailing
-
Long Term
Short Term
Outlook
Dec-13

Domestic
35%
Exports
65%
ICRA Ratings
Oct-13
1980
Punjab, M.P.
Nahar Spinning Mills Limited (NSMLL) is a part of the Ludhiana (Punjab) based
Nahar Group, one of the oldest textile groups in the country. NSMLL started
operations as a small worsted spinning & hosiery unit in Ludhiana and
diversified into the cotton spinning by putting up spinning facilities in
Mandideep, Madhya Pradesh in 1992. Currently, NSMLL is among the largest
spinning mills in the country, focused on export markets as reflected in 70% of
yarn sales emanating from overseas markets. Within yarn, the company offers
wide variety of yarns including 100% cotton, 100% polyester, open end yarns,
melange yarn, gassed/mercerized yarn, compact yarn, compact yarn,
specialized yarn like elitwist, slub core spun etc. Further, NSML forward
integrated into knitted garments to enter into value added segment which are
again focused on exports with 95% of sales from international markets. NSML
has production facility to knit 30 tonnes fabric per day on circular knitting
machines of both dyed and greige yarn in addition to yarn & fabric dyeing and
mercerizing facilities. NSML customers include brands like Gap, Old Navy,
Banana Republic, Chaps, Phillips-Van-Heusen, Izod, Arrow, GH Bass, Geoffrey
Beene, Hampshire among others. Besides, the company has two cogeneration power plants in Ludhiana and Lalru (both in Punjab), with capacity
of 3.8 megawatts (MW) and 4.8 MW respectively.
Nov-13
ACML
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
4.44
0.72
0.13
16%
3%
2.25
Q2 FY13
4.97
22%
0.81
0.22
16%
5%
3.00
Q3FY13
5.06
18%
0.75
0.23
15%
5%
3.54
Q4FY13
5.15
9%
0.89
0.20
17%
4%
3.89
Q1FY14
5.22
18%
0.86
0.28
16%
5%
3.72
Q2FY14
5.53
11%
1.05
0.45
19%
8%
6.53
Q3 FY14
5.33
5%
0.84
0.34
16%
6%
7.00
Q4 FY14
5.96
16%
0.76
0.39
13%
7%
5.65
Q1 FY15
5.28
1%
0.40
-0.11
8%
-2%
1.71
ICRA LIMITED
P a g e | 33
NITIN SPINNERS LIMITED

ACML
FY 13
4.46
4%
0.87
0.27
0.14
3.08
0.00
FY 14
4.88
9%
0.94
0.17
0.35
7.59
0.75
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
2.28
3.47
2.24
0.87
2.13
3.46
2.07
1.01
1.91
3.54
1.76
1.32
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
11%
0%
6%
20%
3%
16%
19%
7%
23%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.58
3.00
2.16
11%
4.97
16
77
2.05
2.43
3.19
19%
2.37
23
88
1.34
1.69
5.38
34%
1.87
19
69
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
25.5
1.2
29.0/10.36
3M
12M
16% 146%
4%
38%
4%
39%
NSL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
35
After exiting CDR, NSL is increasing its spinning and knitting capacity at an
investment of Rs. 2.86 billion. The expansion which is expected to be
completed by FY 2015 would increase the spindle capacity to 150,096 and
knitting capacity to 49 knitting machines. The project is being funded by Rs.
2.0 billion of term loan from the banks and the financial closure of the
project was achieved in January 2014.
30
25
20
15
10
5
0
Sep-14
FY 12
4.28
4%
0.45
0.21
0.00
0.07
0.00
Price Performance
Jul-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
During FY09, NSL had incurred large losses due to derivative exposures and
adverse impact of global economic slowdown. This resulted in stressed
liquidity and forced the Company to avail a CDR package, which was
approved by the CDR Cell in June 2009. Subsequently, during FY13, NSL had
submitted proposal for voluntary exit from the CDR scheme with
retrospective effect from August 1, 2012. NSLs application was approved in
the meeting held by the CDR Core Group (CG) on May 3, 2013 and
subsequently, the company has paid a full and final payment of Rs.18.02
crore towards re-compensation on June 11, 2013. Consequent to the full and
final payment, NSL is deemed to exit CDR with effect from August 1, 2012.
Aug-14
M/s. R. S. Dani & Co.
5%
4.84
63.78%
0.00%
0.86%
29.92%
5.44%
Jun-14
Auditors
Garments
Others
Total (Rs billion)
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Apr-14
OBC,SBI, PNB, IOB
14%
May-14
Bankers
Fabric
While the installed spinning and knitting capacities enable NSL to produce
22,650 MT cotton yarn and 3,800 MT of knitted fabric per annum, the
Company also has a captive coal based power plant of 10.5 MW and Furnace
Oil (FO) based power plant of 7.66 MW. During the three year period ended
March 31, 2014, on average, NSL has achieved capacity utilization of 95% in
the cotton yarn division.
Mar-14
Mr. R. L. Nolkha
81%
NA
NA
NA
Jan-14
Chairman & Managing Director
Yarn
Long Term
Short Term
Outlook
Feb-14
ICRA Ratings
Dec-13
Spinning
77,616 spindles
2,936 rotors
Weaving
31 knitting
machines
Processing
Garmenting
Retailing
-
Nitin Spinners Limited (NSL) was incorporated in 1992, and is promoted by

Mr. R.L. Nolha. The company is primarily engaged in manufacturing of cotton
yarns and cotton knitted fabrics (used in hosiery segment) at its textile mill in
Bhilwara District in the state of Rajasthan.
Oct-13

Domestic
34%
Exports
66%
Nov-13
1992
Rajasthan
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.08
0.18
0.04
17%
3%
2.64
Q2 FY13
1.10
1%
0.21
0.05
19%
5%
2.84
Q3FY13
1.11
4%
0.22
0.05
20%
5%
3.20
Q4FY13
1.17
4%
0.27
0.00
23%
0%
4.38
Q1FY14
1.17
9%
0.23
0.08
20%
7%
4.56
Q2FY14
1.20
9%
0.25
0.09
21%
8%
5.35
Q3 FY14
1.30
17%
0.24
0.09
19%
7%
6.13
Q4 FY14
1.22
4%
0.22
0.09
18%
7%
5.83
Q1 FY15
1.33
13%
0.22
0.09
17%
7%
4.53
ICRA LIMITED
P a g e | 34
PRECOT MERIDIAN LIMITED

ACML
1962
Andhra Pradesh
Domestic
73%
Karnataka, Kerala Exports
27%
Tamil Nadu
Spinning
225,000 spindles,
1,728 rotors
Weaving
117 looms
Processing
12 TPD
Garmenting
Retailing
-

Yarn
97%
Fabric
Garments
Others
Total (Rs billion)
0%
0%
3%
7.38
Chairman
Mr. D Sarath Chandran
Managing Director
Mr. Ashwin Chandran
Bankers
SBI, Andhra Bank, Exim Bank, Axis Bank,ICICI, Yes Bank,
IDBI, Corporation Bank, The South Indian Bank
Auditors
Haribhakti & Company
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
FY 12
6.03
1%
-0.22
0.30
-0.57
-76.07
0.00
FY 13
6.69
11%
0.77
0.27
0.19
23.40
1.00
FY 14
7.38
10%
0.82
0.33
0.30
25.37
2.00
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
2.32
4.68
2.66
1.17
2.09
6.47
4.39
1.38
3.64
6.93
4.48
1.60
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
-4%
-9%
-10%
12%
3%
15%
11%
4%
10%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.27
2.94
-0.74
-10%
-12.13
19
82
3.18
3.64
2.84
11%
5.70
23
98
2.80
3.32
2.45
16%
5.47
21
111
Precot Meridian Limited (PML) was incorporated in 1962 as Premier Cotton

Spinning Mills by the Late Mr. N. Damodaran, Mr. V. N. Ramchandran and Mr.
L. G. Balakrishnan of the Elgi group. PML commenced production of cotton
yarn in 1964 with an initial capacity of 12,096 spindles in Kerala. The company
currently has five cotton yarn spinning mills across Andhra Pradesh,
Karnataka, Kerala and Tamil Nadu with a total installed capacity of 225,000
spindles and 1,728 rotors. In the year 2000, the company forward integrated
into weaving by setting up a weaving unit in Tamil Nadu with 117 looms. In
2003, to meet the captive dyed yarn requirement of the weaving unit, the
company had set up a dyeing unit in Tamil Nadu which currently has a
capacity of 12 tpd. The company is however exiting the weaving and
processing segment due to un-competitiveness with respect to the
unorganized power loom sector which dominates the Indian weaving industry.
The company has recently set up a new technical textile unit at an investment
of ~Rs. 1.75 billion in Special Economic Zone in Hassan (Karnataka) which
commenced production from June 2013.
PML also has captive wind power generation capacity of 13.25 MW in Tamil
Nadu which meets ~50% of the power requirement of the companys
manufacturing facilities in Tamil Nadu and ~15% of the total power
requirement of the company. Due to power shortage in Tamil Nadu, Kerala
and Andhra Pradesh and insufficient captive power generation capacity,
company relies on high cost power such as that generated using diesel
generator and purchased through the exchange, which increases the cost and
lowers the profitability of the company.
PML manufactures cotton spun yarn in medium and fine counts including
value added yarn such as compact yarn, elitwist yarn, gassed yarn, doubled
yarn and slub yarn. The company also has limited presence in polyester
sewing thread and garmenting.
ICRA Ratings
Long Term
Short Term
Outlook
NA
NA
NA

Promoters
FIIs
DIIs
Public: Individuals
Public: Others
61.10%
0.00%
1.99%
31.59%
5.32%
Price Performance
Closing Price (Rs.)
Market Cap (bn)
52W H/L (Rs.)
70.2
0.56
92.85/62.0
3M
12M
-16%
-11%
4%
39%
PML (%)
CNX Nifty 500 (%)
Stock Movement
100
90
80
70
Rs/share
Fact Sheet
Incorporation
Plant Location
60
50
40
30
20
10
0
Price- Rs/share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.46
0.14
0.00
10%
0%
1.98
Q2 FY13
1.70
3%
0.23
0.08
14%
5%
3.58
Q3FY13
1.69
27%
0.17
0.03
10%
2%
2.97
Q4FY13
1.83
14%
0.22
0.04
12%
2%
3.23
Q1FY14
1.62
11%
0.18
0.04
11%
2%
2.74
Q2FY14
2.01
18%
0.32
0.19
16%
10%
4.06
Q3 FY14
1.81
7%
0.17
0.01
10%
1%
2.05
Q4FY14
1.34
6%
0.13
-0.01
7%
-1%
1.36
Q1FY15
1.73
7%
0.09
-0.07
5%
-4%
0.76
ICRA LIMITED
P a g e | 35
RAJAPALAYAM MILLS LIMITED
22%
7%
12%
21%
6%
13%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
1.89
2.32
1.13
11%
7.09
38
86
1.62
2.05
2.82
18%
3.81
39
113
1.79
2.40
3.20
16%
3.67
34
144
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
0.77
0.16
0.01
21%
2%
2.15
Q2 FY13
0.89
-5%
0.22
0.08
24%
9%
3.11
Q3FY13
0.97
31%
0.18
0.07
18%
7%
2.80
Q4FY13
0.92
26%
0.20
0.08
21%
9%
3.37
Q1FY14
1.00
30%
0.25
0.07
25%
7%
3.35
Stock Movement
450
400
350
300
250
200
150
100
50
0
Sep-14
14%
0%
6%
RML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Jul-14
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
331.1
2.4
387.2/217.0
3M
12M
5%
28%
4%
38%
4%
39%
Aug-14
3.23
6.36
3.35
1.87
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Jun-14
2.85
5.36
2.85
1.76
RML is part of the Chennai based Ramco group which has presence in cement, fibre
cement sheets, textiles and information technology. The flagship company of the
Ramco group is Madras Cements Limited with other prominent companies being
Ramco Industries Limited and Ramco Systems Limited. RML has an equity stake of
13.8% in Madras Cements Limited and 9.1% equity stake in Ramco Industries
Limited. In addition to RML, other group companies are also engaged in cotton yarn
spinning with a total aggregate capacity of more than 0.4 million spindles and
13,000 rotors in the group. The other group companies which are engaged in
cotton yarn spinning are The Ramaraju Surgical Cotton Mills Limited, Sri Vishnu
Shankar Mill Limited, Sandhya Spinning Mill Limited, Thanjavur Spinning Mill
Limited and Sri Harini Textiles Limited.
Price Performance
Apr-14
3.10
5.21
2.97
1.57
RML had set up a tissue culture plant in Bangalore (Karnataka) in 1995 which had
accounted for ~1% of the total revenues of the company, however the company
had discontinued the operations with effect from January 2013 in order to
concentrate on its core business of textiles.
53.15%
-0.03%
43.57%
3.25%
May-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
In May 2012, the board of directors of RML had approved the amalgamation of its
wholly owned subsidiary, Rajapalayam Spinners Limited (RSL) which was
subsequently merged w.e.f. April 2012. However as RSL was present in coarser
count segment unlike RML which is present in fine and super counts segment, the
synergies between the two operations was limited. In February 2014, the board of
directors approved the sale of the RSLs unit and in April 2014, all the assets &
liabilities of the RSLs unit were sold.
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Mar-14
Chairman
Mr. PR Ramasubrahmaneya Rajha
Managing Director
Ms. R. Sudarsanam
Bankers
Axis Bank, Canara Bank, IDBI, Indian Bank, SBI
Karur Vysya Bank , Kotak Mahindra, Tamil Nadu
Mercantile Bank, Punjab & Sind Bank
Auditors
M.S. Jagannathan & N. Krishnaswami
Ramakrishna Raja and Co
FY 12
FY 13
FY 14
Operating Income
3.05
3.45
4.34
YoY Growth (%)
-7%
13%
26%
OPBDIT
0.42
0.75
0.91
Interest Charges
0.37
0.26
0.28
PAT
0.01
0.24
0.27
Earnings per Share
1.78
32.23
36.04
Dividend per Share
1.00
6.00
7.50
Jan-14
3%
1%
4.34
[ICRA] BBB
[ICRA] A3+
Stable
Feb-14
Fabric
Garments
Others
Total (Rs billion)
Long Term
Short Term
Outlook
Dec-13

Yarn
96%
ICRA Ratings
Nov-13
Spinning
146,768 spindles
4712 rotors
Weaving
Processing
Garmenting
Retailing
-

Domestic
97%
Exports
3%
Rs/Share
1936
Andhra Pradesh,
Tamil Nadu
Rajapalayam Mills Limited (RML) was incorporated in 1936 and commenced

production with 6,800 spindles. The company presently has an installed
capacity of 146,768 spindles and 4,712 rotors across four spinning mills in Tamil
Nadu and Andhra Pradesh. The company manufactures cotton yarn in a wide
count range from 4s to 290s and also value added yarn such as compact,
elitwist, double ply, gassed and slub yarn. RML also has captive wind power
generation capacity of 30.35 MW in Tamil Nadu which met ~50% of the companys
power requirements in FY 2014 and supports healthy capacity utilization of the
spinning units, given the power shortage in both Tamil Nadu and Andhra Pradesh.
The company however continues to remain dependent on high cost power such as
that generated using diesel/furnace oil generators and purchase from third parties
for maintaining high capacity utilization of the spinning units.
Oct-13
Fact Sheet
Incorporation
Plant Location
ACML
Price - Rs/Share
Q2FY14
1.08
22%
0.27
0.12
25%
11%
3.67
Q3 FY14
1.12
16%
0.20
0.04
18%
3%
3.25
Q4 FY14
1.13
23%
0.19
0.03
17%
3%
2.53
Q1 FY15
0.89
-11%
0.17
0.10
19%
12%
2.13
ICRA LIMITED
P a g e | 36
FY 14
31.31
18%
3.86
1.36
1.02
43.48
12.50
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
8.59
17.88
13.64
2.49
10.44
19.23
13.86
2.94
10.07
19.49
12.96
3.64
6%
-2%
4%
13%
3%
16%
12%
3%
17%
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
5.48
6.18
1.12
3%
10.44
32
65
4.71
5.35
2.50
14%
4.17
31
71
3.56
4.22
2.83
17%
3.35
30
58
RSWM is currently undertaking capex of ~Rs. 2.9 billion towards increasing the
weaving capacity from 9 mn meters pa to 16 mn meters pa, addition of
~25,000 spindles for mlange yarn and setting up of recycled polyester fiber
facility which are expected to be complete by FY 2014-15.
During FY2012, the borrowings of RSWMs subsidiary, Cheslind Textiles
engaged in manufacturing cotton yarn, were restructured under CDR
mechanism.
The board of directors of RSWM have approved the
amalgamation of Cheslind with RSWN in April 2014 subject to approval
various approvals and regulatory clearances with the proposed appointment
date for merger of April 1, 2013.
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
5.31
0.61
0.04
12%
1%
2.04
Q2 FY13
6.12
18%
0.85
0.22
14%
4%
2.80
Q3FY13
6.54
43%
0.89
0.22
14%
3%
2.81
Q4FY13
6.70
16%
0.86
0.21
13%
3%
2.98
Q1FY14
6.67
26%
1.01
0.29
15%
4%
3.10
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
181.8
4.2
230.55/126.05
3M
12M
-11%
16%
4%
38%
4%
39%
RSWML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
250
200
150
100
50
0
Sep-14
FY 13
26.56
24%
3.32
1.33
0.73
30.97
10.00
Price Performance
Jul-14
FY 12
21.39
0%
1.31
1.17
-0.53
-18.45
0.00
51.44%
-7.51%
29.36%
11.69%
Aug-14

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Jun-14
Chairman
Mr. Ravi Jhunjhunwala
Managing Director
Mr. Arun Churiwal
Bankers
SBBJ, Axis Bank, BoB, CBI, Dena Bank, EXIM, ICICI,
OBC, PNB, SBI, SBM, UCO, UBI, Syndicate Bank
Auditors
S. Bhargava Associates, A.L.Chechani & Co
Apr-14
14%
0%
2%
31.45
NA
NA
NA
May-14
Fabric
Garments
Others
Total (Rs. billion)
Long Term
Short Term
Outlook
Mar-14

Yarn
84%
ICRA Ratings
Jan-14
Spinning
435,000 spindles
4800 rotors
Weaving
9 mn mtr pa
Denim
18 mn mtr pa
Processing
41.4 mn mtr pa
Retailing
NA
RSWM Limited (formerly Rajasthan Spinning & Weaving Mills Limited), the
flagship Company of LNJ Bhilwara Group, is a leading manufacturer and
exporter of synthetic and blended spun yarn, PV fabric and Denim fabric. The
company has 8 manufacturing units across Rajasthan. RSWM is one of the
largest producers and exporters of polyester viscose blended yarn in India
manufacturing 124,428 MT of yarn during FY2014 reporting growth of ~8%
over the preceding year. The share of value added yarn had increased to ~30%
of the total production in FY 2014 from ~20% in FY 2013. RSWM manufactures
a range of blended suiting fabrics under Mayur brand in India which is
marketed by more than 2,000 retailers. The production of fabric and denim
had increased by ~22% in FY2014 over FY2013 to ~33.7 million meters.
RSWMs denim manufacturing facility is backward integrated with in-house
yarn spinning facility and offers more than 3,000 denim variants. The
customers of denim division include brands like Diesel, Marlboro, Levis
Europe, GAP, C & A, Ann Taylor, Gymboree, Polo, Zara, H&M, Jack & Jones,
Mavi, Kohls Wrangler, VF, Spykar, among others. RSWM is self-reliant in
captive power generation through its 46 MW power plant which feeds all its
units spread across the state of Rajasthan. RSWM also Invested Rs. 0.32
billion in a 20 MW wind power project through LNJ Power Ventures under
Group Captive Scheme which commissioned plant in March, 2013.
Feb-14

Domestic
64%
Exports
36%
Dec-13
1960
Rajasthan
Oct-13
ACML
Nov-13
Fact Sheet
Incorporation
Plant Location
Rs/Share
RSWM LIMITED
Price - Rs/Share
Q2FY14
7.30
19%
1.02
0.27
14%
4%
3.42
Q3 FY14
7.46
14%
0.89
0.21
12%
3%
2.88
Q4 FY14
7.42
11%
0.87
0.22
12%
3%
3.05
Q1 FY15
6.76
1%
0.84
0.24
12%
3%
2.97
ICRA LIMITED
P a g e | 37
SUPREME TEX MART LIMITED

ACML
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
2.78
6.51
3.49
1.63
3.29
7.67
4.31
1.79
3.14
7.93
3.99
2.02
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
11%
2%
14%
10%
2%
13%
9%
0%
8%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.14
2.99
1.77
10%
3.86
33
95
2.41
3.16
1.84
8%
4.75
34
123
1.97
2.92
1.53
7%
5.19
63
115
The company produced 23985 MT yarn during FY2014 compared to the

33405 MT in the preceding year reflecting a decline of 28%. STML
manufactured 0.59 mn pieces of garments and 679 MT of fabric as compared
to 0.95 mn pieces of garments and 750 MT of fabric in the previous year.
During FY2013, the company completed projects related to expansion in
knitted garments and spinning in addition to setting up of 66 KVA
independent power line.
STML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
20
15
STMLs Board of Directors approved allotment of 3.65 mn equity shares of

Rs. 5/- each at the rate of Rs. 60/- each (including share premium of Rs. 55/each) to promoters in September 2013 totaling Rs. 219.3 mn on preferential
basis against prevailing market price of Rs.~ 5/share. During FY2012,
promoters infused Rs. 376 mn equity into the company.
10
5
0
Sep-14
FY 14
8.30
-7%
0.77
0.50
0.01
0.17
0.00
16.2
1.1
15.41/4.47
3M
12M
173% 153%
4%
38%
4%
39%
Jul-14
FY 13
8.94
6%
0.91
0.49
0.16
2.49
0.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
FY 12
8.45
49%
0.90
0.51
0.16
2.46
0.00
Price Performance
Jun-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
58.24%
0.00%
0.00%
33.41%
8.35%
Apr-14
Ashish Agarwal & Co
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
30%
8%
10%
8.30
STML manufactures, sells, and exports yarns, fabrics, and garments in the
domestic as well export markets. It offers variety of yarns, such as grey
cotton yarn, grey acrylic yarn, grey polyester cotton yarn, blended yarn, dyed
cotton yarn, fibre dyed cotton yarn, cotton melange yarn, fibre dyed
polyester cotton blended yarn, fibre dyed polyester cotton melange yarn,
hand-knitting yarn, fancy yarns, and carpet/bath matt yarn. The company is
also engaged in the dyeing of fibres, yarns, and fabrics, as well as offers
circular knitted and flat knitted fabrics. In addition, it provides garments for
men, women, and kids, which include t-shirts, sweat shirts, polo shirts etc.
Mar-14
Fabric
Garments
Others
Total (Rs billion)
Chairman
Mr. Ajay Mahajan
Managing Director
Mr. Ajay Gupta
Bankers
SBI, PNB, UCO Bank, Allahabad Bank, CBI
Auditors
52%
Jan-14
Yarn
NA
NA
NA
Feb-14
Long Term
Short Term
Outlook
Dec-13
Spinning
45,648 spindles
4080 rotors
Weaving
4 TPD
Processing
29.5 TPD
Garmenting
32,500 pcs p.d.
Retailing
NA
ICRA Ratings
Supreme Tex Mart Limited (STML) (formerly Supreme Woollen Mills and
Supreme Yarns) was converted into a public limited company in 1989 is
promoted by Ram Lal Gupta, Sanjay Gupta and Ajay Gupta along with Punjab
State Industrial Development Corporation. The company came out with a
public issue in April 1996, to part-finance its expansion projects.
Nov-13

Domestic
72%
Exports
28%
Rs/Share
1988
Punjab
Oct-13
Fact Sheet
Incorporation
Plant Location
Price-Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
2.16
0.23
0.04
11%
2%
1.81
Q2 FY13
1.94
-9%
0.24
0.06
12%
3%
1.90
Q3FY13
1.93
22%
0.21
0.03
11%
2%
1.80
Q4FY13
2.90
1%
0.23
0.03
8%
1%
1.91
Q1FY14
2.23
3%
0.23
0.04
10%
2%
1.88
Q2FY14
2.22
14%
0.24
0.05
11%
2%
2.02
Q3 FY14
2.18
13%
0.26
0.03
12%
1%
2.05
Q4 FY14
1.68
-42%
0.05
-0.12
3%
-7%
0.35
Q1 FY15
1.07
-52%
0.16
-0.05
15%
-5%
1.33
ICRA LIMITED
P a g e | 38
SUPER SPINNING MILLS LIMITED

Fact Sheet
Incorporation
Plant Location
ACML
1962
Andhra Pradesh
Tamil Nadu
Spinning
165,984 spindles
1,200 rotors
Weaving
Processing
Garmenting
Retailing
-

Domestic
72%
Exports
28%
Yarn
98%
Fabric
Garments
Others
Total (Rs billion)
2%
5.28
Chairman
Mr. Sumanth Ramamurthi
Managing Director
Mr. A S Thirumoorthy
Bankers
Union Bank of India, SBI, IDBI, Andhra Bank, ICICI,
SBH
Auditors
Reddy, Goud & Janardhan
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
FY 12
3.92
-20%
-0.26
0.31
-0.44
-8.01
0.00
FY 13
4.45
14%
0.44
0.24
0.06
1.12
0.00
FY 14
5.28
19%
0.40
0.25
0.02
0.34
0.00
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
1.29
2.56
1.44
0.63
1.11
2.62
1.32
0.69
1.03
2.73
1.39
0.71
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
-7%
-11%
-12%
10%
1%
15%
8%
0%
14%
Super Spinning Mills Limited (SSML) was incorporated in 1962 by Late Mr. N.
Damodaran, Mr. V. N. Ramchandran and Mr. L. G. Balakrishnan of the
Coimbatore based Elgi group which besides cotton yarn, is engaged in
manufacturing of compressors, automotive engines, diesel engines, rotors,
textile machinery, building materials and software. SSML commenced
production of cotton yarn in April 1964 with a capacity of 12,000 spindles and
the company currently has an installed capacity of 165,984 spindles and 1,200
rotors across four spinning mills in Andhra Pradesh and Tamil Nadu. The
company also has captive wind power generation capacity of 3.70 MW;
however it meets only ~4% of the companys power requirement. Insufficient
captive power capacity and power shortage in Tamil Nadu and Andhra
Pradesh impacts the capacity utilization of the spinning units. Low capacity
utilization and dependence on high cost power from diesel generators
increases the cost of production which impacts the profitability of the
company.
The company manufactures cotton yarn in medium and fine counts ranging
from 24s to 120s including value added yarn such as mercerized yarn, slub
yarn, gassed yarn, organic yarn, zero twist yarn, compact yarn, elitwist yarn
and TFO (Two for One) yarn. Most of the production of yarn is however in
finer count range (more than 60s) with around 50% of the total production
comprising of value added compact yarn. The company is also partially
integrated into segments like knitting and garmenting, however their
proportion in the total sales is modest.
ICRA Ratings
Long Term
Short Term
Outlook
[ICRA] B+
NA
NA

Promoters
FIIs
DIIs
Public: Individuals
Public: Others
42.41%
0.00%
0.00%
50.77%
6.82%
Price Performance
Closing Price (Rs.)
Market Cap (bn)
52W H/L (Rs.)
7.1
0.4
10.69/4.68
3M
12M
-29%
35%
4%
38%
4%
39%
SSML (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
12
10

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.28
3.05
-0.84
-16%
-5.52
37
34
1.91
2.77
1.82
19%
3.04
37
49
1.95
2.82
1.63
14%
3.45
33
50
Rs/Share
8
6
4
2
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Mar-14
Jan-14
Feb-14
Dec-13
Oct-13
0
Nov-13
SSML has two subsidiaries, Sara Elgi Arteriors Limited, which is a wholly
owned subsidiary, engaged in manufacturing of Unplasticized Poly Vinyl
Chloride (uPVC) doors and windows; and Elgi Building Products Limited which
is a step down subsidiary engaged in manufacturing of PVC extrusions which
are used in manufacturing of uPVC doors and windows.
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
0.96
0.10
0.00
11%
0%
1.72
Q2 FY13
1.10
9%
0.10
0.05
9%
5%
1.70
Q3FY13
1.03
27%
0.08
0.00
8%
0%
1.48
Q4FY13
1.27
21%
0.14
0.02
11%
2%
2.31
Q1FY14
1.13
17%
0.09
0.00
8%
0%
1.67
Q2FY14
1.42
29%
0.13
0.03
9%
2%
2.26
Q3 FY14
1.37
33%
0.10
0.00
7%
0%
1.60
Q4 FY14
1.30
2%
0.07
0.00
6%
0%
1.08
Q1 FY15
1.30
2%
0.07
0.00
6%
0%
1.08
ICRA LIMITED
P a g e | 39
SUTLEJ TEXTILES AND INDUSTRIES LIMITED
5.07
12.73
6.30
4.64
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
10%
2%
10%
12%
5%
15%
14%
7%
22%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.62
3.13
2.11
14%
4.94
27
83
1.87
2.30
2.99
23%
3.33
31
81
1.36
1.74
4.57
33%
2.38
30
92
STIL is increasing its spinning capacity by 30,672 spindles to have a total

capacity of 292,408 spindles and also undertaking modernization of the
existing facilities at an investment of ~Rs. 3 billion which is expected to be
completed in FY 2014-15.
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
4.10
0.37
0.12
9%
3%
2.06
Q2 FY13
4.28
3%
0.56
0.24
13%
6%
3.21
Q3FY13
4.09
15%
0.52
0.25
13%
6%
3.30
Q4FY13
4.32
24%
0.50
0.16
12%
4%
3.53
Q1FY14
4.43
8%
0.58
0.28
13%
6%
3.74
STAIL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
450
400
350
300
250
200
150
100
50
0
Sep-14
5.40
11.49
6.52
3.49
366.1
6.0
425.9/159.25
3M
12M
6%
130%
4%
38%
4%
39%
Jul-14
5.82
11.45
7.24
2.77
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The company has four manufacturing units, one each in Kathu (Jammu &
Kashmir) and Bhawanimandi (Rajasthan) for spinning and two units near
Bhilad (Gujarat) for weaving & processing and home furnishing respectively.
The company was also engaged in garmenting; however it has been
discontinued from January 2013. The total installed spinning capacity across
the two spinning units was 261,736 spindles as on March 31, 2014 which has
more than doubled from 123,392 spindles in FY 2002-03 due to regular
expansion undertaken. The companys weaving capacity is 4.9 million meters
per annum (60 looms), processing capacity is 20 million meters per annum
and home furnishing capacity is 2.5 million meters (32 looms) per annum.
Price Performance
Jun-14
FY 14
18.81
12%
2.65
0.58
1.31
80.19
8.00
63.83%
0.00%
0.02%
17.45%
18.70%
Apr-14
FY 13
16.80
9%
1.95
0.65
0.77
70.47
5.00
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
FY 12
15.37
-3%
1.47
0.70
0.32
29.06
5.00
Mar-14
Standalone (Rs. billion)

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
NA
NA
NA
Jan-14
Auditors
Mr. C.S. Nopany

PNB, J&K Bank, SBI, SBBJ, SBH, IDBI, ICICI, United Bank
of India, BOM, The Jhalawar Nagrik Sahkari Bank Ltd.
Singhi & Co.
Long Term
Short Term
Outlook
Feb-14
Chairman
Bankers
STIL is primarily engaged in manufacturing of cotton, synthetic and blended

spun yarn which accounts for ~91% of the operating income of the company.
Within spun yarn, most of the sale is contributed by synthetic yarn at ~66% of
the total yarn sales with the remaining being contributed by sale from cotton
yarn. The company manufactures a wide range of yarn in counts ranging from
6-50s with focus on value added yarn such as spun dyed yarn, cotton mlange
yarn, lycra, modal and tencel yarns. In addition to spun yarn, the company
also manufactures suiting and shirting fabric and home furnishing which
accounts for ~3% and ~2% of the operating income of the company. Most of
the sales of the company are in the domestic market which accounts for ~77%
of the total sales of the company.
ICRA Ratings
Dec-13
Spinning
261,736 spindles
Yarn
91%
336 rotors
Weaving
7.4 mm pa
Fabric
5%
(92 looms)
Processing
199 tpd of yarn and
Garments
0%
20 mm pa of fabric
Garmenting
Others
4%
Retailing
Total (Rs billion)
18.81
Sutlej Textiles & Industries Limited (STIL) was incorporated in June 2005 after
the demerger of textile divisions of Sutlej Industries Limited and Damanganga
Processors Limited into a separate company, STIL. STIL was part of the
erstwhile KK Birla Group and after the family division came under Ms. Nandini
Nopany. The company is currently managed by Mr. C.S. Nopany who is the
grandson of late Mr. K.K. Birla and son of Ms. Nandini Nopany.
Oct-13

Domestic
77%
Exports
23%
Nov-13
2005
J&K, Gujarat
Rajasthan
ACML
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Q2FY14
4.92
15%
0.75
0.43
15%
9%
5.06
Q3FY14
4.64
13%
0.74
0.40
16%
9%
5.46
Q4 FY14
4.82
11%
0.60
0.21
12%
4%
4.20
Q1 FY15
4.92
11%
0.57
0.36
12%
7%
4.23
ICRA LIMITED
P a g e | 40
TRIDENT LIMITED
19.68
33.71
22.40
7.06
17.96
33.26
18.62
8.88
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
11%
-2%
4%
17%
1%
11%
19%
5%
16%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
3.52
4.14
1.75
7%
7.61
26
87
3.17
3.77
2.36
14%
4.03
25
100
2.10
2.70
3.46
25%
2.56
25
83
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
8.07
1.33
0.01
16%
0%
1.96
Q2 FY13
8.26
19%
1.19
0.01
14%
0%
2.25
Q3FY13
8.28
27%
1.46
0.14
18%
2%
2.59
Q4FY13
8.96
24%
1.80
0.33
20%
4%
3.07
Q1FY14
8.73
8%
1.94
0.44
22%
5%
3.27
TL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
40
35
30
25
20
15
10
5
0
Sep-14
21.48
33.38
22.84
6.48
33.2
14.9
33.5/10.77
3M
12M
57% 208%
4%
38%
4%
39%
Jul-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The Company is currently implementing an expansion project at its Budhni

(Madhya Pradesh) unit, whereby 176,000 spindles producing 38,802 MT Yarn per
annum will be added to manufacturing capacities. Post expansion, the total Yarn
manufacturing capacity will become about 542,000 Spindles and 5,500 rotors
capable of manufacturing 12,000 MT of cotton & blended yarn per month.
Moreover, TL is also setting up a sheeting unit at Budhni unit, whereby its loom
capacity will increase by 500 looms. The integrated spinning cum sheeting project is
being implemented at an investment of Rs. 16.67 billion and is expected to be
completed by September 2015. In addition, the company is also setting up a 60MW
captive power plant at an investment of ~3.93 billion which is expected to be
completd by March 2015.
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Aug-14
FY 14
38.69
16%
7.28
2.10
1.97
6.33
0.30
Price Performance
Jun-14
FY 13
33.35
22%
5.55
2.35
0.49
1.59
0.00
68.90%
0.01%
1.80%
13.23%
16.06%
Apr-14
FY 12
27.32
8%
3.00
1.72
-0.44
-1.43
0.00
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
May-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Mar-14
Deloitte Haskins & Sells
NA
NA
NA
Jan-14
Auditors
Mr. Rajinder Gupta

SBI, SBT, SBM, SBBJ,SBH,PNB, Canara Bank, SBoP, BOI,
OBC, Indian Bank Corporation Bank, Exim Bank,
Allahabad Bank, Syndicate Bank, IOB, BOB, CBI, IFCI
Long Term
Short Term
Outlook
Feb-14
Chairman
Bankers
TL was incorporated in 1990 as Abhishek Industries Limited before being renamed

w.e.f April 2011. In 1992, TL implemented a Greenfield project in joint sector with
Punjab State Industrial Development Corporation (PSIDC) to set up facilities for
manufacturing cotton yarn. Later, in 1999, Abhishek Spinfab Corporation Limited
having facilities for processing cotton yarn and manufacturing terry towel products
was amalgamated with the company. Subsequently in 2002, Varinder Agro
Chemicals Limited having facilities for producing Paper and Sulphuric Acid was also
amalgamated with the Company. Trident Corporation Limited (TCL), which had set
up a green-field terry towel project in Madhya Pradesh with a capacity of 300
looms was amalgamated with TL w.e.f. April 1, 2014. Thus, over the years, the
company has expanded its presence to multiple business segments, and is
currently operating capacities for manufacturing Yarns, Terry Towels, Paper and
Chemicals besides operating captive power plant of 50 MW. The manufacturing
facilities of TL are located at Barnala, Punjab and Budhni, Madhya Pradesh.
ICRA Ratings
Dec-13
Spinning
365,904 spindles
Yarn
39%
5,500 rotors
Weaving
688 looms
Towel
35%
Processing
6,825 TPA
Paper
21%
Paper
175,000 TPA
Others
5%
Chemicals
100,000 TPA
Total (Rs billion)
39.09
Trident Limited (TL), the flagship Company of Trident Group, is one of the world's
largest manufacturers of terry towels and wheat straw-based paper, and has
integrated textile operations with capacities for spinning, weaving and processing.
The Company enjoys strong clientele comprising of MNCs in 70 countries across
the globe, which includes leading retailers.
Nov-13

Domestic
53%
Exports
47%
Rs/Share
1990
Punjab, M.P
Oct-13
ACML
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Q2FY14
10.00
21%
2.11
0.73
21%
7%
4.08
Q3 FY14
10.21
23%
1.84
0.51
18%
5%
3.58
Q4 FY14
9.90
11%
1.54
0.29
16%
3%
3.21
Q1FY15
9.13
5%
1.82
0.32
20%
4%
3.14
ICRA LIMITED
P a g e | 41
TT LIMITED
Doogar & Associates

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.40
4.53
3.29
0.58
5%
-1%
6%
11%
1%
14%
9%
1%
14%
5.04
5.61
0.70
4%
12.82
31
67
6.26
6.57
1.60
6%
6.14
32
60
5.64
5.98
1.70
7%
5.11
25
34
Stock Movement
60
50
40
30
20
10
0
Sep-14
1.67
4.39
3.25
0.52
TTL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Jul-14
1.77
3.63
2.41
0.48
The Company has recently completed its capacity expansion project, whereby a
25,200 spindle spinning unit in Rajula, Gujarat has been commissioned. This unit
would be able to avail of the various incentives provided in recently announced
Gujarat Textile Policy, 2012. While the company has no ongoing capacity
expansion projects, it however intends to install Solar Power Plants for localized
captive consumption within each Spinning Mill.
51.6
1.1
51.65/21.1
3M
12M
42% 145%
4%
38%
4%
39%
Aug-14
FY 14
7.44
48%
0.64
0.38
0.09
4.18
1.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Jun-14
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
FY 13
5.03
28%
0.53
0.33
0.07
3.05
1.00
Price Performance
Apr-14
Net Fixed Assets

Total Assets
Total Debt
asTangible Net worth
FY 12
3.94
-19%
0.19
0.27
-0.02
-1.01
0.00
55.64%
0.00%
0.00%
41.71%
2.65%
May-14
Standalone (Rs. billion)

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
TTL continues to generate significant proportion of revenues from export

market, most of which is contributed from yarn exports at ~90% of total
export sales. While ~91% of the companys yarn sales are in the export
markets, most of the garment and fabric sales are in the domestic markets.
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Oct-13
Auditors
Mar-14
Chairman
Dr. Rikhab C. Jain
Managing Director
Mr. Sanjay Kumar Jain
Bankers
OBC, PNB, Indian Bank, SBI, SBH, SBM
While TTL commenced operations with facilities to manufacture knitted fabric

at Ghaziabad in the state of Uttar Pradesh, it has however gradually entered
into manufacturing of combed cotton yarn and undergarments at various
locations in Uttar Pradesh, Gujarat and Tamil Nadu. Besides an installed capacity
of 71,224 spindles for yarn manufacturing and 2,000 MTPA of knitted fabric, the
Company has a network of franchise units for manufacturing and marketing of
the undergarments and knitwear garments at Tirupur, Kolkata, Delhi, Varanasi,
Saharanpur, Kanpur and Ludhiana, which are marketed under the brand name
TT.
Jan-14

Yarn
68%
Fabric
7%
Garments
14%
Others
11%
Total (Rs billion)
7.44
NA
NA
NA
Feb-14
Spinning
71,224 spindles
Weaving
2,000 MTPA
Processing
Garmenting
Retailing
-
Long Term
Short Term
Outlook
Dec-13

Domestic
31%
Exports
69%
ICRA Ratings
Nov-13
1978
U.P., T.N.
Gujarat
TT Limited (TTL) (erstwhile Tirupati Texknit Limited), an integrated textile

manufacturer with presence across the cotton chain, including yarn, knitted
fabrics and garments, was incorporated in 1978, and is promoted by Mr
Rikhab C. Jain.
Rs/Share
ACML
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.05
0.12
0.01
12%
1%
1.63
Q2 FY13
1.22
24%
0.12
0.02
10%
2%
1.64
Q3FY13
1.26
32%
0.14
0.01
11%
1%
1.54
Q4FY13
1.50
57%
0.15
0.03
10%
2%
1.59
Q1FY14
1.43
37%
0.15
0.02
10%
2%
1.74
Q2FY14
2.08
71%
0.19
0.04
9%
2%
1.86
Q3 FY14
1.88
49%
0.16
0.01
8%
1%
1.63
Q4 FY14
2.04
36%
0.13
0.01
6%
1%
1.76
Q1 FY15
1.53
7%
0.14
0.01
9%
1%
1.43
ICRA LIMITED
P a g e | 42
VARDHMAN POLYTEX LIMITED
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
5.54
7.69
6.60
0.36
5.17
8.07
6.47
0.45
4.90
8.05
6.01
0.55
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
-2%
-12%
-6%
11%
-1%
9%
10%
-1%
12%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
18.45
19.48
-0.23
-9%
-33.32
27
23
14.38
20.29
1.34
7%
6.36
37
35
10.99
17.73
1.18
7%
5.80
33
44
During FY2011, VPL initiated setting up a Greenfield spinning facility in

Nalahgarh, Himachal Pradesh however the implementation got delayed due
lack of equity funds and large cash losses in FY2012 on account of inventory
losses following crash in cotton prices. Subsequently the company applied for
debt retracting under CDR mechanism in April 2012 and received approval by
the CDR Empowered Group in December 2012. The spinning facility has
been completed in FY 2014.
The liquidity position of the company continues to remain weak on account
of delay in cash inflows from sale of land which was directed under the CDR.
VPL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Stock Movement
70
60
50
40
30
20
10
0
Sep-14
FY 14
10.54
12%
1.04
0.88
-0.06
-3.27
0.00
Jul-14
FY 13
9.43
10%
1.02
0.76
-0.07
-2.78
0.00
52.3
1.2
65.1/29.3
3M
12M
-6%
32%
4%
38%
4%
39%
Aug-14
FY 12
8.55
6%
-0.20
0.86
-1.04
-61.30
0.00
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Jun-14

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Price Performance
Apr-14
Auditors
Canara Bank, SBI, SBoP, PNB, Corporation Bank, BoI,

Axis Bank, BoB, BoM, PSB, UBI, J&K Bank, Andhra Bank,
Allahabad Bank
M/s S.S. Kothari Mehta & Co
55.04%
2.78%
0.02%
19.81%
22.35%
May-14
Bankers
Over the last one decade, VPL made investments in two major venturesOswal Retail Private Limited and yarn dyed shirt (YDS) fabric manufacturing
through Oswal F M Hammerle Textiles Ltd. VPL lost Rs. 0.50 billion in the
retail venture (Rs. 0.45 billion yet to be written off) which closed its
operations in FY2009 and lost substantial investment in other venture as
well. In addition VPL has written off ~Rs. 0.35 billion in its overseas
investment where it bought the assets of its joint venture partner,
Hammerle. VPLs has lost most of the value of its investment in OFMH due to
accumulated losses which has eroded the latters net worth. VPL has
extended corporate guarantee of Rs. 0.82 billion to OFMH.
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Mar-14
Mr. Ashok Kumar Oswal
Jan-14
Chairman & Managing Director
[ICRA] D
[ICRA] D
NA
Feb-14

Yarn
79%
Fabric
9%
Garments
1%
Others
11%
Total (Rs billion)
10.53
Dec-13
Spinning
195,024 spindles
Weaving
NA
Processing
15 TPD dyeing
Garmenting
1800 pcs p.d.
Retailing
NA
Long Term
Short Term
Outlook
Oct-13

Domestic
51%
Exports
49%
ICRA Ratings
Nov-13
1980
Punjab, HP
Vardhman Polytex Limited (VPL) is engaged in the manufacture of coarse

count cotton yarn and also has small presence in garment manufacturing.
VPLs operations were restructured during FY2003 following a settlement in
the promoter family in January 2003, which resulted in cessation of VPL
being part of the Vardhman Group. VPL continued to invest in capacity
expansion and modernization and currently has ~195,024 spindles with 15
tons per day yarn dyeing facility, which has helped the company to improve
its product profile and also manufacture value added dyed yarn products.
Out of total yarn sold by VPL, ~16% is in the dyed form.
Rs/Share
ACML
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
1.73
0.21
-0.08
12%
-5%
1.05
Q2 FY13
1.92
1%
0.17
-0.02
9%
-1%
1.05
Q3FY13
2.06
16%
0.20
0.05
10%
2%
1.16
Q4FY13
2.14
9%
0.25
0.06
12%
3%
3.40
Q1FY14
2.09
21%
0.26
0.01
13%
0%
1.43
Q2FY14
2.36
23%
0.25
0.08
10%
3%
1.39
Q3 FY14
2.38
16%
0.16
0.02
7%
1%
1.00
Q4 FY14
2.39
12%
0.20
-0.06
8%
-2%
1.05
Q1 FY15
2.26
8%
0.17
-0.04
7%
-2%
0.84
ICRA LIMITED
P a g e | 43
VARDHMAN TEXTILES LIMITED
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
13%
4%
8%
20%
8%
13%
24%
12%
18%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
1.16
1.60
3.59
17%
4.09
49
149
1.15
4.10
5.51
21%
3.25
55
178
1.08
1.52
9.66
0.33
2.31
51
186
VTL incurred capex of ~Rs. 8 billion in FY2014 for expanding the spinning (by
0.1 million) and weaving (by 230 looms) capacities.
Stock Movement
600
500
400
300
200
100
During FY2011, the steel business of VTL was demerged to 100% subsidiary,
Vardhman Special Steels Limited with effect from January 01, 2011.
0
Sep-14
31.54
89.08
33.73
31.32
VTL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Jul-14
27.04
145.88
31.74
25.06
413.8
26.3
513.65/326.9
3M
12M
-13%
18%
4%
38%
4%
39%
Aug-14
25.78
66.20
25.49
22.07
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Jun-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
VTL entered into fabric manufacturing in 1992 with greige (unprocessed)

fabric, and entered the processed fabric manufacturing in 1999 and currently
offers specialized fabrics like special white, melanges, nylon, modal & linen,
in special finishes in addition to commodity fabrics. The company produced
261 mn mtr (PY: 219 mn mtr) of fabric in FY2014. More than 65% of the
fabric is marketed to large apparel brands (global and Indian). Most of the
fabric sales are to the buying houses (38%) and distributors (30%).
Price Performance
Apr-14
FY 14
61.66
24%
14.60
1.51
7.66
114.90
11.00
61.85%
8.00%
13.04%
14.66%
2.45%
May-14
FY 13
49.74
7%
9.76
1.77
3.85
57.00
6.00
Mar-14
FY 12
46.49
5%
6.24
1.74
1.68
22.61
4.50
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
NA
NA
NA
Jan-14

Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
VTL on a standalone basis has spinning and weaving capacities. With

spindleage of ~ 0.9 million spindles, the company has one of the largest
spinning capacities in the country spread across 12 production plants located
in the states of Punjab, Himachal Pradesh and Madhya Pradesh which
produced 168,285 MT (PY: 148,003) yarn in FY2014. The company focuses on
value added and specialized yarns by offering compact yarn, cotton lycra, gas
mercerized, melange yarn, fancy yarns, cotton Dyed, slub yarns, acrylic yarns,
hand knitted yarns which contributes to ~52% of the yarn sales of VTL. A
third of the total yarn production is exported, a third is sold domestically and
the remaining third is used for captive consumption for weaving.
Long Term
Short Term
Outlook
Feb-14
Chairman & MD
Mr. Paul Oswal
Bankers
SBoP, Allahabad Bank, ICICI Bank, PNB, SBI, BoI,
Corporation Bank, IDBI Bank, Canara Bank, Standard
Chartered Bank, SBH, SBM, Axis Bank, EXIM, OBC
Auditors
S.C. Vasudeva & Co
ICRA Ratings
Dec-13
Spinning
0.93 mn spindles,
Yarn
49%
7188 rotors
Weaving
1320 looms
Fabric
30%
Processing
110 mn mtr pa
Sewing Thread
11%
Dyeing
71 TPD
Others
10%
Garmenting 1.80 mn pieces pa Total (Rs billion)
61.66
Vardhman Textiles Limited (VTL) (earlier known as Mahavir Spinning) is part

of the Vardhman Group, a large textile conglomerate with a presence across
the textile value chain ranging from fiber (acrylic), yarns, sewing threads to
fabrics and garments. This allows the company to be a one stop solution for
customers including buying houses, retailers, overseas garment
manufacturers, recognized export houses, wholesalers and marketing
agents. Other than textiles, the group has presence in manufacturing of steel
billets and rolled steel products, mainly for the automobile industry.
Oct-13

Domestic
64%
Exports
36%
Nov-13
1965
Punjab,
MP, HP
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1 FY13
9.48
1.79
0.55
19%
6%
3.75
Q2 FY13
10.20
-2%
2.03
0.70
20%
7%
4.63
Q3FY13
10.93
10%
2.26
0.84
21%
8%
4.97
Q4FY13
11.46
18%
2.68
1.15
23%
10%
5.01
Q1FY14
12.13
28%
2.89
1.45
24%
12%
6.67
Q2FY14
12.90
26%
3.46
1.78
27%
14%
8.96
Q3 FY14
14.31
31%
3.46
1.75
24%
12%
9.98
Q4 FY14
12.92
13%
3.36
1.54
26%
12%
7.73
Q1 FY15
12.92
13%
3.36
1.54
26%
12%
7.73
ICRA LIMITED
P a g e | 44
WINSOME TEXTILES INDUSTRIES LIMITED

ACML
1.65
6.26
3.62
1.06
3.50
7.75
4.17
1.25
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
8%
-3%
6%
18%
4%
18%
18%
4%
19%

TOL/TNW
OPBDIT/Interest
NCA/Total Debt
Total Debt/OPBDITA
Debtor (Days)
Inventory (Days)
2.60
3.88
0.86
1%
8.98
42
146
3.40
4.88
1.66
7%
5.73
42
159
3.35
5.22
1.96
8%
4.70
43
188
70
60
50
40
30
20
10
0
Sep-14
1.58
4.46
2.37
0.91
Stock Movement
Jul-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
The company raised equity funds of USD 10 million in March 2011 through
GDR issue for part funding the capital expenditure done in the last two years
for expansion in spinning & dyeing and setting up knitting facility. The
company got its debt restructured with effect from January 01, 2009 which
included reschedulement of existing term loans, relaxation in margin for
working capital loan, carving out of working capital irregularities and
additional borrowings.
WTIL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Aug-14
FY 14
4.99
42%
0.89
0.45
0.18
9.23
0.00
Jun-14
FY 13
3.52
11%
0.63
0.38
0.15
7.63
0.00
Apr-14
FY 12
3.16
-10%
0.26
0.31
-0.09
-4.65
0.00
48.0
1.0
59.95/42.1
3M
12M
-8%
-5%
4%
38%
4%
39%
May-14
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Mar-14
Lodha & Company
33.81%
0.52%
2.08%
2.59%
61.00%
Price Performance
Jan-14
Auditors
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Feb-14
Chairman
Mr. Satish Bagrodia
Managing Director
Mr. Ashish Bagrodia
Bankers
UCO Bank, Central Bank, Canara Bank, BoI, Andhra
Bank, Vijaya Bank, PNB, Dena Bank, Axis Bank
The company has recently completed capital expenditure for setting up a

Greenfield spinning facility having 41,088 spindles, expansion of yarn/fibre
dyeing capacity of 6 tons per day and knitting capacity of 6MT per day. The
company manufactures wide variety of yarn including 100% cotton as well as
cotton blends with viscose / polyester / acrylic / linen / modal / wool / silk in
raw white, melange and solid dyed suitable for domestic markets & for direct
exports to Europe and USA. With forward integration into knitting, WTIL shall
consume part of the yarn manufactured in its own facilities, thereby
increasing contribution of revenues from value added products. WTIL had
initiated implementing a hydro power plant project during 2007-09 which
was completed in FY 2014 and is expected to be commissioned in FY2015,
subject to completion of requisite permissions.
[ICRA] BB+
[ICRA] A4+
Stable
Dec-13

Yarn
92%
Fabric
0%
Garments
0%
Others
8%
Total (Rs billion)
4.99
Long Term
Short Term
Outlook
Oct-13
Spinning
105696 spindles
Weaving
6 TPD
Processing
26 TPD
Garmenting
NA
Retailing
NA
ICRA Ratings
Nov-13
1980
Himachal Pradesh
Domestic
61%
Exports
39%
Winsome Textile Industries Limited was promoted by Mr. Satish C. Bagrodia

and his associates in 1980 for setting up a spinning unit at Baddi, Himachal
Pradesh. The company started commercial production of cotton yarn in June
1983 with an installed capacity of 16,400 spindles for manufacturing cotton
and synthetic yarns. Periodically, WTIL expanded and modernised its capacity
and currently has installed capacity of 105,696 spindles.
Rs/Share
Fact Sheet
Incorporation
Plant Location
Price - Rs/Share
Operating Income
Growth (%) - YoY
OPBDIT
PAT
OPBDIT/OI (%)
PAT/OI (%)
OPBDITA/Interest
Q1FY13
0.82
0.12
0.02
14%
3%
1.08
Q2Y13
0.91
13%
0.13
0.05
15%
6%
2.43
Q3FY13
0.87
23%
0.15
0.05
18%
6%
1.66
Q4FY13
0.92
25%
0.20
0.07
22%
8%
1.67
Q1FY14
1.00
22%
0.17
0.04
17%
4%
1.60
Q2FY14
0.99
8%
0.17
0.07
18%
7%
1.92
Q3FY14
1.27
46%
0.22
0.10
17%
8%
2.47
Q4FY14
1.74
89%
0.34
-0.03
19%
-2%
1.87
Q1FY15
1.76
77%
0.26
0.05
15%
3%
1.61
ICRA LIMITED
P a g e | 45
WINSOME YARNS LIMITED
3.09
7.16
4.97
0.43
OPBDIT/OI (%)
PAT/OI (%)
ROCE (%)
22%
2%
10%
5%
-7%
1%
8%
-10%
2%
5%
11.52
15.60
0.75
-6%
11.55
116
123
16
14
12
10
8
6
4
2
0
5%
. Standalone(Rs. billion)
4.00
4.50
TOL/TNW
4.60
5.38
OPBDIT/Interest
1.73
0.42
NCA/Total Debt
5%
-2%
Total Debt/OPBDITA
7.10
24.46
Debtor (Days)
62.94
109.07
Inventory (Days)
253
156
*Financials are for 18M from March 2012 to September 2013
Stock Movement
4.50
4.50
Operating Income
3.30
3.30
Growth (%) - YoY
0.6
0.6
OPBDIT
0.0
0.0
PAT
17.7
17.7
OPBDIT/OI (%)
109
PAT/OI
(%) 109
149
149
OPBDITA/Interest
Sep-14
3.29
7.56
5.33
1.18
WYL (%)
BSE 500 (%)
CNX Nifty 500 (%)
Jul-14
3.27
7.17
5.07
1.27
stage. The company faced liquidity problems to fund the expansions &
acquisitions
and
3.43
3.43 raised short term loans to finance the long term
investments.
Further,
due to paucity of funds, the capacity utilisation of the
7.56
7.56
plant
dropped
impacting
the operational performance. Subsequently the
5.33
5.33
company
sought
1.18
1.18relief through corporate debt restructuring and a package
was approved in March 2009 under CDR mechanism with effect from January
01,7%2009. The 7%
company raised equity funds of USD 13.84 million in March
-7% through GDR
-7% issue for part funding the capital expenditure.
2011
2.0
0.1
14.9/2
3M
12M
-16%
-86%
4%
38%
4%
39%
Aug-14
Net Fixed Assets

Total Assets
Total Debt
Tangible Net worth
0.30
0.30
0.52 FY2008,0.52
During
WYL invested Rs. 0.15 billion in overseas acquisitions with a
-0.31to expand
-0.31
view
presence in European countries however these investments
0.30 to be 0.30
proved
detrimental and most of the subsidiaries are at liquidation
0
0
Closing Price (Rs.)

Market Cap (bn)
52W H/L (Rs.)
Jun-14
FY 13*
7.68
69%
0.65
0.86
-0.76
-10.76
0.00
Price Performance
Apr-14
FY 12
4.55
38%
0.22
0.52
-0.31
-4.44
0.00
38.67%
-0.02%
0.43%
60.88%
May-14
FY 11
3.31
49%
0.71
0.41
0.06
0.10
0.00
Promoters
FIIs
DIIs
Public: Individuals
Public: Others
Mar-14
Rs. billion
Operating Income
YoY Growth (%)
OPBDIT
Interest Charges
PAT
Earnings per Share
Dividend per Share
During 2003-04 WYL entered into knitwear by setting up a project in Mohali,

Punjab to manufacture cotton sweaters with installation of 22 knitting
machines. In 2004-05 WYL undertook a project to replace the old spindles
and equipments installed in 1993-94. During FY2007-2009, WYL undertook
large capex to expand spinning and knitting facilities and set-up mini hydro
power plants totaling 3.9MW capacity. Currently WYL has 182 flatbed
knitting
FY 12 machines
FY 12 having gauge range of 7-14 that allows the company to
produce
wide variety
of cotton sweaters for European/American summers as
4.55
4.55
well
27%as winters.27%
Jan-14
Chairman
Mr. Satish Bagrodia
Managing Director
Mr. Manish Bagrodia
Bankers
Canara Bank, State Bank of Patiala, Punjab National
Bank
Auditors
Lodha & Company
WYL commenced commercial production in 1994-95 with an installed

capacity of 23,040 spindles in Dera Bassi, District Patiala, and Punjab. During
1998-99, the company expanded its capacity with addition of another 25,824
spindles and undertook de-bottlenecking project and added balancing
equipments during 2000-01.
[ICRA] D
[ICRA] D
NA
Feb-14

Yarn
96%
Fabric
0%
Garments
4%
Others
%
Total (Rs billion)
4.09
Long Term
Short Term
Outlook
Dec-13
Spinning
109824 spindles
Weaving
NA
Processing
NA
Garmenting
1.16 mn pa
Retailing
NA

Domestic
37%
Exports
63%
ICRA Ratings
Nov-13
1990
Mohali, Punjab
Winsome Yarns Limited (WYL) was incorporated in collaboration with Punjab

State Industrial Development Corporation Limited (PSIDC) for setting up
manufacturing unit for spinning cotton yarn with counts ranging from 16-40s.
Rs/Share
ACML
Oct-13
Fact Sheet
Incorporation
Plant Location
Plant Location
Price - Rs/Share
Q1 FY13
1.25
0.20
0.03
16%
2%
1.53
Q2 FY13
1.35
8%
0.18
0.00
14%
0%
1.44
Q3FY13
1.43
30%
0.15
0.01
10%
0%
1.14
Q4FY13
1.30
18%
0.20
0.02
15%
1%
1.53
Q1FY14
1.24
-1%
0.11
-0.01
9%
-1%
0.80
Q2FY14
1.14
-15%
-0.13
-0.79
-11%
-70%
-0.86
Q3 FY14
1.02
-28%
0.01
-0.30
1%
-29%
0.08
Q4 FY14
1.25
-4%
0.03
-0.18
2%
-14%
0.19
Q1 FY15
0.86
-31%
0.05
-0.25
5%
-29%
-0.31
ICRA LIMITED
P a g e | 46
ICRA Limited
An Associate of Moody's Investors Service
CORPORATE OFFICE
Building No. 8, 2nd Floor, Tower A; DLF Cyber City, Phase II; Gurgaon 122 002
Tel: +91 124 4545300; Fax: +91 124 4545350
Email: info@icraindia.com, Website: www.icra.in
REGISTERED OFFICE
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Tel: +91 11 23357940-50; Fax: +91 11 23357014
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+ (91 20) 2552 0194/95/96, Fax + (91 20) 553 9231
Copyright, 2014 ICRA Limited. All Rights Reserved.
All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to
ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA in particular, makes no representation or
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ICRA LIMITED
P a g e | 47

ICRA-Indian Spinning Industry-October 2014

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Indian Spinning Industry

ICRA RESEARCH SERVICES

World cotton balance sheet

World cotton stock to use ratio vs. Cotlook A Index

China cotton balance sheet

World less China cotton balance sheet

Indias cotton balance sheet and estimate for CY 2014/15

India's yearly cotton and cotton equivalent yarn export

Indias monthly cotton consumption and export

Cotton prices in India and China vs Cotlook A index

Trend in India's cotton prices

Cotton stock with mills and equivalent days of consumption

Monthly yarn production, capacity utilization and inventory levels

Monthly yarn exports

Cotton yarn prices in India, China and Pakistan

Cotton yarn spread in India, China and Pakistan

Trend in India's contribution margin in rupee and USD terms

Outlook on Indian spinning industry: Stable to Negative for FY 2014-15 ....17

INDIAN SPINNING INDUSTRY

Summary Highlights and Outlook

OUTLOOK ON COTTON PRICES

Sources: ICRA Estimates, Industry data, ICAC, USDA

World Cotton Balance Sheet

Sources: ICRA Estimates, Industry data, ICAC, USDA

China Cotton Balance Sheet

Sources: ICRA Estimates, Industry data, ICAC, USDA

Sources: ICRA Estimates, Industry data, ICAC, USDA

Actual Actual Actual Actual

Monthly cotton consumption and exports

Sources: ICRA Estimates, Industry data, USDA, Textile Commissioner,

Sources: Textile Commissioner, USDA

Cotton prices are for ginned cotton.

Sources: Textile Commissioner, ICRA research

Cotton Prices (Rs./Kg)

Sources: Textile Commissioner, ICRA research

Trend in Yarn Production and Exports

Production - Million Tons

Blended Spun Yarn

Sources: ICRA Estimates, Industry data, Ministry of Textiles, Textile

Trend in Total Spun Yarn Production and Capacity Utilisation

Spun Yarn Production

Capacity Utilisation (RHS)

Sources: ICRA Estimates, Industry data, Ministry of Textiles, Textile

International Cotton Yarn Prices

Cotton Yarn Spread - US$/Kg

Sources: ICRA Estimates, Industry data, Ministry of Textiles,

Cotton Yarn Prices (Rs./Kg)

Source: Textile Commissioner, ICRA research

Sources: Aggregate financials for 22 large cotton spinning

Total Downgrades in Textile sector

Total Downgrades in spinning sector

Sources: ICRA Estimates, Ministry of Textiles, Textile Commissioner,

Subsidy Cap for

% Share of sector in subsidy

AMBIKA COTTON MILLS LIMITED

Total Debt/Net Worth

Net Fixed Assets

Closing Price (Rs.)

IDBI, Bank of Nova Scotia, BOB, Corporation Bank, Axis

Shareholding Pattern (%)

Mr. P.V. Chandran

Chairman cum Managing Director

% Product Revenue Mix FY14