The shares of the largest textile manufacturers gained up to 18 percent after the company bagged a prestigious work order from the Ministry of Defence for Rs 9.06 crore.
With a market capitalization of Rs 296.98 crore, the shares of Shiva Texyarn Limited were trading at Rs 229.10 per share, increasing around 13 percent as compared to the previous closing price of Rs 202.75 apiece.
Reason for Rise
The shares of the company have seen positive movement after Shiva Texyarn Limited secured d an order from the Central Government, the Ministry of Defence, the Department of Military Affairs, Indian Airforce for the supply of NBC HAVERSACK MK-ll, the aggregate amount of this order is Rs 9.06 crore.
Order Book
The company received a 36 crore order from the Ministry of Defense to supply 16,000 pairs of NBC SUIT PERMEABLE MK, with delivery expected by August 2025. This adds to the order book, reflecting strong demand and contributing to future revenue growth.
Financial performance
Examine the company’s financial condition, revenue shrunk by 38 percent from Rs 98.73 crore in Q2FY24 to Rs 60.68 crore in Q2FY25, and during the same time frame, net profit shrunk by 144 percent from a loss of Rs 2.88 crore to Rs a profit of 1.27 crore.
In FY24, the company’s revenue breakdown showed 93.24% from manufactured goods, with yarn at 58.14%, fabrics at 17.84%, waste cotton at 6.67%, and garments at 10.59%. Traded goods contributed 4.84%, and others 1.92%. Exports accounted for 1.5%, while domestic revenue was 98.5%.
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Production & Sale
In FY24, the spinning unit produced 6,101.52 tonnes of yarn, down from 8,187.45 tonnes in FY23. Yarn sales totaled 6,291.43 tonnes, including 168.46 tonnes for exports, compared to 8,427.05 tonnes (237.89 tonnes of exports) in FY23. Wind power generation was 107.50 lakh units, slightly down from 107.86 lakh units in FY23.
Manufacturing Capacity
The company has a manufacturing capacity of 6 lakh meters/month in lamination (2 lines), 1 million meters/month in coating (3 lines), and over 52,000 spindles in spinning. It also operates 55 windmills with a captive wind energy capacity of 13.195 MW.
Distribution Network & clients
The company has a distribution network of over 10,000 retailers and 200+ distributors, supported by a 90-member sales team. It serves a broad client base, with the top 10 customers contributing just 22.5% of its FY24 revenue, highlighting diverse customer reach.
Company Profile
Shiva Texyarn Ltd manufactures of cotton yarn and technical textile products like coated and laminated fabrics, home textiles, and other value-added products.
Written by Abhishek Singh
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