During Tuesday’s trading session, the shares of one of the key players in the Embroidery & Laces (EL) business in India moved up by around 3.5 percent, after the company announced consolidating and modernising its Embroidery business.
Price Movement:
With a market capitalisation of Rs. 119 crores, at 10:40 a.m., the shares of Pioneer Embroideries Limited were trading in the green at Rs. 38.6, up by nearly 2.8 percent, as compared to its previous closing price of Rs. 37.52.
The stock has delivered negative returns of nearly 9 percent in the last one year, as well as declined by around 8 percent in a month.
What’s the News:
According to the latest exchange filings, Pioneer Embroideries Limited (PEL) has announced the sale of the Land and Building of its manufacturing unit located in Naroli for a total consideration of Rs. 7.02 crores.
The entire proceeds from this transaction will be utilised to reduce the company’s term liabilities, thereby helping to lower the interest burden on the company.
The Naroli unit generated about Rs. 6.2 crores in sales during the current fiscal year, representing a minimal portion of the company’s overall revenue and profitability.
To fulfill existing embroidery orders, PEL will enter into a leave and license arrangement with the buyer, retaining a part of the facilities for continued manufacturing activities therein to sustain specific business obligations.
Most of the embroidery manufacturing operations have already been relocated to PEL’s new facility at Shree Ganesh Integrated Textile Park in Degaon, Dhule, Maharashtra.
The reorganization and reduction in operations at the Naroli unit align with PEL’s broader objective of consolidating and modernizing its embroidery business at the Degaon unit.
Financial Performance:
Pioneer Embroideries reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 13 percent, from Rs. 85.3 crores in Q3 FY24 to Rs. 96.1 crores in Q3 FY25.
Similarly, the company’s net profit increased during the same period from Rs. 0.02 crores to Rs. 2.2 crores, representing an impressive growth of nearly 10900 percent YoY.
About the Company:
Established in 1991, Pioneer Embroideries Limited is engaged in the business of manufacturing and exporting value-added Specialized Polyester Filament Yarn (SPFY) and Embroidery & Laces.
At present, PEL has one SPFY manufacturing facility in Himachal Pradesh and three active embroidery and lace manufacturing facilities at – Degaon (Maharashtra), Sarigam (Gujarat) and Naroli (Dadra & Nagar Haveli).
PEL has a yarn capacity of about 26,000 MTPA, along with a capacity of around 14 mm meters for laces and about 2,000 million stitches of embroidery.
Written by Shivani Singh
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