Filatex Fashions Limited (NSE: FILATEX)

Quick Facts / Company Snapshot

Company Name: Filatex Fashions Limited
Corporate Identity Number (CIN): L51491TG1994PLCO17158
Year of Incorporation: 1994
Stock Exchange Listings: BSE Limited and National Stock Exchange of India Limited (NSE)
BSE Scrip Code: 532022
NSE Symbol: FILATFASH
ISIN Number: INE185E01021
Industry: Textile, leather, and other apparel products
Primary Business Activity: Manufacturing of socks and allied products
Revenue from Operations (Consolidated, 2023-24): Rs. 17,640.81 Lakhs
Net Profit After Tax (Consolidated, 2023-24): Rs. 882.56 Lakhs
Paid-Up Share Capital: Rs. 8,33,40,72,725/-
Authorized Share Capital: Rs. 85,000.00 Lakhs
Chairman and Managing Director: Mr. Prabhat Sethia
Chief Executive Officer: Mr. Sunil Agarwal
Chief Financial Officer: Mr. Yash Sethia
Company Secretary: Mr. Chintala Srinivasa Rao
Registered Office: D.No 1-80-40-SP-58-65, Shilpa Homes Layout, Gachibowli, Seri Lingampally, K.V. Rangareddy, Hyderabad, 500032, Telangana
Primary Subsidiary: Filatex Mines and Minerals Private Limited (98.13% ownership)
Total Employees: 90 permanent employees

Company overview

Filatex Fashions Limited is a prominent public limited company incorporated on March 8, 1994, with its headquarters located in Hyderabad, Telangana, India. The organization is a recognized entity in the textile and apparel sector, specializing predominantly in the manufacturing of socks and allied products. It operates with a registered office situated at D.No 1-80-40-SP-58-65, Shilpa Homes Layout, Gachibowli, Seri Lingampally, K.V. Rangareddy, Hyderabad.

The enterprise is listed on two of India’s major stock exchanges, thereby ensuring a wide investor base and strict adherence to corporate governance protocols. It trades on the BSE Limited under the scrip code 532022 and on the National Stock Exchange of India Limited (NSE) under the symbol FILATFASH. The equity shares of the organization were admitted and listed on the NSE with effect from May 6, 2024.

With an authorized share capital of Rs. 85,000.00 Lakhs consisting of 170,00,00,000 equity shares of Rs. 5 each, the organization maintains a robust capital structure. The paid-up capital stands at an impressive Rs. 83,340.73 Lakhs, comprising 1,66,68,14,545 equity shares.

The organization is driven by a commitment to ethical practices extending to all stakeholders, from employees to suppliers and the wider community. Social initiatives are heavily focused on empowering individuals and communities through specialized programs in education, healthcare, and environmental conservation. Governance remains a cornerstone of its operations, ensuring transparency, accountability, and ethical conduct across all operational tiers.

Business segments

The operations are highly focused, operating entirely within a single primary business segment.

Textile, Leather, and Other Apparel Products

The core business activity encompasses the textile industry, specifically the manufacturing of apparel products. This segment is responsible for the entirety of the organization’s revenue generation.

Segment Name: Textile, leather, and other apparel products
National Industrial Classification (NIC) Code: 13999
Revenue Contribution: 100.00%
Operational Scope: The segment’s activities are entirely devoted to the manufacturing of socks and allied products. The operational performance heavily relies on the national and global markets. The organization achieves cost effectiveness through the continuous application and upgrading of technology within this segment.

History and evolution

The enterprise commenced its corporate journey upon incorporation in the year 1994. From its inception, the primary focus has been anchored in the textile industry. Over the span of its corporate existence, which exceeds three decades, the organization has navigated the complexities of the apparel manufacturing sector in India.

A significant milestone in the corporate evolution occurred when the organization transitioned its registered office. The office was shifted from 8-2-682131A#201, May Fair Garden Apartments, Road No. 12, Banjara Hills, Hyderabad to its current expansive location at the KMC Corporate Office in Gachibowli, Hyderabad, effective August 14, 2023.

A major strategic evolution took place during the financial year 2023-2024. The organization expanded its corporate umbrella by acquiring a substantial subsidiary. On September 13, 2023, the organization allotted 157,00,00,000 equity shares on a swap basis. This strategic move facilitated the acquisition of equity shares in Filatex Mines and Minerals Private Limited.

Swap Ratio: 10:1 (10 equity shares of Rs. 5 each of Filatex Fashions for every 1 equity share of Re. 1 each held in Filatex Mines and Minerals Private Limited).
This acquisition marked a pivotal moment, transforming the organization from a standalone textile manufacturer into a corporate group with diversified subsidiary interests.

Furthermore, on July 15, 2024, the shareholders approved a sub-division (stock split) of the equity shares, converting 1 equity share of a face value of Rs. 5 each into 5 equity shares of a face value of Re. 1 each, aiming to increase market liquidity.

Products and services

The product portfolio is highly specialized and concentrated on a specific niche within the broader apparel market.

Socks and Allied Products

The organization dedicates 100% of its manufacturing capabilities to the production of socks and allied products. This single product line is the sole driver of the entity’s turnover.

Revenue from Operations (Standalone): Rs. 17,115.81 Lakhs
Percentage of Total Revenue: 100.00%
Product Profile: The manufacturing processes involve the utilization of raw materials and trading stock, which accounted for an inventory value of Rs. 800.95 Lakhs by the end of March 2024. The production facility, equipped with updated technology, ensures the output of premium quality products designed to meet the demands of various customer segments, including schools, corporate companies, wholesalers, and retailers.

Brand portfolio

While specific individual brand names under which the socks are marketed are not explicitly detailed in the provided financial and operational disclosures, the overarching corporate brand, “Filatex Fashions,” serves as the primary identifier in the market.

Filatex Fashions

The corporate brand represents the entirety of the manufacturing output.

Revenue: Rs. 17,115.81 Lakhs (Standalone)
Percentage of Total Revenue: 100.00%
Brand Profile: The brand is positioned to deliver cost-effective and premium quality socks. It targets a wide array of customers and maintains a strong focus on on-time-in-full (OTIF) delivery. The brand’s reputation is supported by an ISO 9001:2008 certification (certificate number IAS/IND/8493), highlighting a commitment to quality management systems in its manufacturing processes.

Geographical presence

The enterprise operates exclusively within the domestic boundaries of India, with no international market footprint or export contributions to its total turnover.

National Market (India)

The organizational footprint spans widely across the Indian subcontinent, reaching numerous states and administrative regions.

Locations Served: The products reach customers across 27 States and 6 Union Territories within India.
Revenue Contribution: 100.00% of the total turnover is generated domestically.
Manufacturing Footprint: The organization operates 2 manufacturing plants.
Office Footprint: The corporate operations are managed from 1 primary office location.

Key Operational Facility

Unit I: Located at Plot No. 1, SY no. 42, Chetlapotrharama Village, Jinnaram Mandal, Sangareddy District, Hyderabad-502319. This facility is the core manufacturing hub where the labor-intensive production of socks takes place.

Filatex Fashions Limited Logo

Financial performance analysis

The financial year 2023-24 demonstrated a period of sustained revenue generation, alongside strategic corporate restructuring through the acquisition of a major subsidiary, which impacted the consolidated financial posture.

Standalone Performance Overview

On a standalone basis, the organization achieved a revenue from operations of Rs. 17,115.81 Lakhs, reflecting an increase from the Rs. 16,410.83 Lakhs recorded in the previous year. The total income, including other income of Rs. 262.07 Lakhs, reached Rs. 17,377.89 Lakhs.

Despite the increase in top-line revenue, the standalone profit for the year experienced a contraction. The profit for the period stood at Rs. 872.86 Lakhs, down from Rs. 1,191.47 Lakhs in the preceding year. This moderation in profitability was influenced by an increase in the cost of materials consumed, which rose to Rs. 15,686.70 Lakhs from Rs. 14,278.12 Lakhs, and higher other expenses totaling Rs. 659.17 Lakhs.

Consolidated Performance Overview

The consolidated financials incorporate the performance of the newly acquired subsidiary, Filatex Mines and Minerals Private Limited. The consolidated revenue from operations was recorded at Rs. 17,640.81 Lakhs. The total consolidated income was Rs. 17,902.90 Lakhs.

The consolidated profit for the year was Rs. 882.56 Lakhs. The consolidated cost of materials consumed was Rs. 16,189.78 Lakhs, and total consolidated expenses amounted to Rs. 16,705.48 Lakhs.

Key Financial Ratios

The operational efficiency and financial stability are reflected in the key ratios:

Debtors Turnover: 1.19 (down from 1.30 in the previous year, a change of -0.11%).
Inventory Turnover: 14.02 (down from 24.94 in the previous year, a change of -10.92%).
Interest Coverage Ratio: 8.46 (down from 12.57 in the previous year, a change of -4.11%).
Current Ratio: 2.19 (down from 2.67 in the previous year, a change of -0.48%).
Debt Equity Ratio: 0.02 (down from 0.78 in the previous year, a change of -0.76%).
Operating Profit Margin: 7.85% (down from 10.29% in the previous year, a change of -2.44%).
Net Profit Margin: 5.10% (down from 7.26% in the previous year, a change of -2.16%).

Profit and loss analysis

The following tables present a detailed breakdown of the Standalone and Consolidated Profit and Loss Statements for the financial year ended March 31, 2024.

Standalone Statement of Profit and Loss (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
I. Revenue from operations	17,115.81	16,410.83
II. Other income	262.07	364.22
IV. Total Income (I+II)	17,377.89	16,775.05
V. Expenses
Cost of materials consumed	15,686.70	14,278.12
Changes in inventories	-649.63	30.63
Employee benefits expense	277.41	211.95
Finance costs	158.65	133.70
Depreciation and amortization expense	61.29	45.96
Other expenses	659.17	398.84
Total expenses	16,193.58	15,009.21
VI. Profit before exceptional and tax	1,184.30	1,675.84
VII. Profit before tax	1,184.30	1,675.84
VIII. Tax expense: Current tax	306.53	484.86
Deferred tax	4.91	0.50
IX. Profit/(loss) for the period	872.86	1,191.47
Total comprehensive income for the period	872.86	1,191.47
Earnings per equity share (Basic)	0.05	1.23
Earnings per equity share (Diluted)	0.09	1.23

Consolidated Statement of Profit and Loss (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
I. Revenue from operations	17,640.81	16,410.83
II. Other income	262.08	364.22
IV. Total Income (I+II)	17,902.90	16,775.05
V. Expenses
Cost of materials consumed	16,189.78	14,278.12
Changes in inventories	-657.35	30.63
Employee benefits expense	286.71	211.95
Finance costs	158.70	133.70
Depreciation and amortization expense	61.29	45.96
Other expenses	666.36	398.84
Total expenses	16,705.48	15,009.21
VI. Profit before exceptional and tax	1,197.41	1,675.84
VII. Profit before tax	1,197.41	1,675.84
VIII. Tax expense: Current tax	309.94	484.86
Deferred tax	4.91	0.49
IX. Profit/(loss) for the period	882.56	1,192.97
Total comprehensive income for the period	882.56	1,192.97
Earnings per equity share (Basic)	0.05	1.23
Earnings per equity share (Diluted)	0.09	1.23

Balance sheet analysis

The balance sheet reflects a massive expansion in total assets and equity, primarily driven by the allotment of shares for the acquisition of the subsidiary.

Standalone Balance Sheet (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
ASSETS
Non-Current Assets
Property, plant and equipment	536.68	339.89
Capital work-in-progress	135.00	135.00
Investments	2,21,056.00	–
Loans	2,885.87	4,089.77
Deferred Tax Assets (net)	14.22	19.13
Other Non-current assets	426.49	418.14
Total Non-Current Assets	2,25,054.27	5,001.93
Current Assets
Inventories	1,450.58	694.22
Trade receivables	14,708.45	14,041.40
Cash and Cash equivalents	39.68	175.98
Bank balances other than above	16.21	17.48
Other current assets	2,579.23	3,499.71
Total Current Assets	18,794.14	18,428.79
Total Assets	2,43,848.41	23,430.72
EQUITY AND LIABILITIES
Equity
Equity share capital	83,340.73	4,840.73
Other equity	1,46,888.71	3,459.84
Total Equity	2,30,229.44	8,300.57
Liabilities
Non-current liabilities
Borrowings	5,020.63	6,514.22
Current liabilities
Trade payables	7,204.97	7,837.13
Other financial liabilities	325.55	168.79
Provisions	936.10	484.86
Other Current Liabilities	131.73	125.15
Total Current Liabilities	8,598.34	8,615.94
Total Equity and Liabilities	2,43,848.41	23,430.72

Consolidated Balance Sheet (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
ASSETS
Non-Current Assets
Property, plant and equipment	536.68	339.89
Capital work-in-progress	135.00	135.00
Investments	2,19,588.00	–
Loans	3,194.30	4,089.77
Deferred Tax Assets (net)	14.22	19.13
Other Non-current assets	426.49	418.14
Total Non-Current Assets	2,23,894.70	5,001.93
Current Assets
Inventories	1,481.32	694.22
Trade receivables	15,289.75	14,041.40
Cash and Cash equivalents	42.23	175.98
Bank balances other than above	16.21	17.48
Other current assets	3,357.51	3,499.71
Total Current Assets	20,187.01	18,428.79
Total Assets	2,44,081.71	23,430.72
EQUITY AND LIABILITIES
Equity
Equity share capital	83,340.73	4,840.73
Other equity	1,46,902.51	3,459.84
Non Controlling Interest	30.26	–
Total Equity	2,30,273.50	8,300.57
Liabilities
Non-current liabilities
Borrowings	5,127.63	6,514.22
Current liabilities
Trade payables	7,262.78	7,837.13
Other financial liabilities	325.55	168.79
Provisions	939.51	484.86
Other Current Liabilities	152.74	125.15
Total Current Liabilities	8,680.58	8,615.94
Total Equity and Liabilities	2,44,081.71	23,430.72

Cash flow analysis

The cash flow statements outline the liquidity movements, highlighting substantial non-cash investing and financing activities associated with the subsidiary acquisition.

Standalone Cash Flow Statement (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
A. Cash flow from Operating activities
Profit before tax	1,184.30	1,675.84
Adjustments for:
Depreciation and Amortisation	61.29	45.96
Interest expense	158.65	133.70
Interest Income	-258.06	-361.86
Operating Profit Before Working Capital Changes	1,146.18	1,493.65
Change in Trade Receivables	-667.05	-2,787.47
Change in Deposits, loans and advances	1,203.90	-143.70
Change in Inventories	-756.35	-240.87
Change in Other Non current Assets	8.36	-0.10
Change in Other Current Assets	920.48	-429.30
Change in Trade Payables	-632.16	1,083.71
Change in Other Financial Liabilities	156.75	13.11
Change in Provisions	129.31	–
Change in Other Current liabilities	6.58	-20.04
Cash Generated from Operating activities	1,499.29	-1,031.00
less: Taxes Paid	-15.39	116.75
Net Cash Generated from Operating activities	1,514.68	1,147.75
B. Cash flow from Investment activities
Capital Expenditure on Fixed Assets including CWIP	-258.07	-236.59
Cash Paid for Purchase of Investments	-2,21,056.00	–
Interest received On Fixed Deposits	258.06	361.86
Net Cash flows from Investing Activities	-2,21,056.01	125.27
C. Cash flow from Financing activities
Increase in Share Capital including Premium	2,21,056.00	–
Increase in money received against share warrants	–	-5,268.43
Repayment of Long term & Short term Borrowings	-1,493.59	5,875.79
Interest paid on borrowings	-158.65	-133.70
Net Cash flow from Financing activities	2,19,403.76	473.66
Net Increase in Cash and Cash Equivalents (A+B+C)	-137.57	1,746.68
Cash and Cash equivalents at the beginning of the Year	193.46	742.28
Cash and Cash equivalents at the end of the Year	55.89	193.46

Consolidated Cash Flow Statement (Amount in Rs. Lakhs)

Particulars	31 March 2024	31 March 2023
A. Cash flow from Operating activities
Profit before tax	1,197.41	1,675.84
Adjustments for:
Depreciation and Amortisation	61.29	45.96
Interest expense	158.70	133.70
Interest Income	-258.07	-361.86
Operating Profit Before Working Capital Changes	1,159.33	1,493.65
Change in Trade Receivables	-1,246.55	-2,787.47
Change in Deposits, loans and advances	1,945.94	-143.70
Change in Inventories	-764.08	-240.87
Change in Other Non current Assets	0.3	-0.10
Change in Other Current Assets	144.56	-429.30
Change in Trade Payables	-580.21	1,083.71
Change in Other Financial Liabilities	156.75	13.11
Change in Provisions	129.31	–
Change in Other Current liabilities	21.57	-20.04
Cash Generated from Operating activities	966.26	-1,031.00
less: Taxes Paid	-13.62	116.75
Net Cash flows from Operating activities	979.88	1,147.75
B. Cash flow from Investment activities
Capital Expenditure on Fixed Assets including CWIP	-258.07	-236.59
Cash Paid for Purchase of Investments	-2,19,518.00	–
Interest received On Fixed Deposits	258.07	361.86
Net Cash flows from Investing Activities	-2,19,518.00	125.27
C. Cash flow from Financing activities
Increase in Share Capital including Premium	2,21,085.00	–
Increase in money received against share warrants	–	-5,268.43
Repayment of Long term & Short term Borrowings	2,551.59	5,875.79
Interest paid on borrowings	-158.70	-133.70
Net Cash flow from Financing activities	2,18,374.72	473.66
Net Increase in Cash and Cash Equivalents (A+B+C)	-163.40	1,746.68
Cash and Cash equivalents at the beginning of the Year	221.83	742.28
Cash and Cash equivalents at the end of the Year	58.44	193.46

Board of directors and leadership team

The corporate governance structure is managed by a professional Board of Directors comprising an optimum combination of Executive and Independent Directors, bringing vast experience across various domains.

Key Executives and Directors

Mr. Prabhat Sethia: Chairman and Managing Director. He holds the Director Identification Number (DIN) 00699415. Appointed originally on March 8, 1994, he is a promoter director with extensive expertise in Regulatory, Finance & Accounting, Legal, and General Management. During the financial year 2023-24, he drew a remuneration of Rs. 60,00,000, which represents a 150% increase from the previous year. He serves as the Chairman of the Risk Management Committee.
Mrs. Sangeeta Sethia: Non-Executive & Non-Independent Director. Holding DIN 02600900, she is a B.Com graduate with over 27 years of rich experience in the spinning industry. She mentors the management on future growth strategies and holds expertise in Technology. She holds 1,10,020 equity shares in the entity.
Mr. Sunil Agarwal: Chief Executive Officer and Whole-time Director. Appointed on July 26, 2024, he holds DIN 10068195. A Chartered Accountant with over 10 years of experience, his expertise encompasses Financial Services, Financial Risk Services, and Investment Advisory. He receives a proposed remuneration of Rs. 2,66,667 per month. He is also an Independent Director on the board of Kisan Mouldings Limited.
Mr. Nageshwara Rao Chitirala: Non-Executive & Independent Director. Appointed on May 5, 2023, holding DIN 02197018. He brings expertise in Marketing. He serves as the Chairman of the Nomination & Remuneration Committee. He also holds a directorship in Gradiente Infotainment Limited.
Mr. Arun Sharma: Non-Executive & Independent Director. Appointed on May 5, 2023, holding DIN 09180139. He possesses expertise in Trading. He serves as the Chairman of both the Audit Committee and the Stakeholders Relationship Committee, as well as the Corporate Social Responsibility Committee.
Mr. Vallam Setty Raghuram: Non-Executive Director. Holding DIN 08037371, he has a strong background in Marketing and Research & Development.
Mr. Swapnil Prakash Raka: Non-Executive & Independent Director. Appointed on September 8, 2023, holding DIN 01815313. He contributes expertise in Research & Development.
Ms. Hemalatha Ayepu: Non-Executive & Independent Director. Appointed on May 30, 2024, holding DIN 10616324.
Mr. Yash Sethia: Chief Financial Officer. Appointed on March 30, 2024. During the financial year, he drew a remuneration of Rs. 7.80 Lakhs.
Mr. Chintala Srinivasa Rao: Company Secretary & Compliance Officer. Appointed on April 1, 2024.

The Board met 9 times during the financial year. The Audit Committee met 7 times. The leadership ensures strict compliance with governance norms and statutory laws.

Subsidiaries, associates, joint ventures

During the financial year, the organization made a significant strategic investment to expand its operational purview by acquiring a subsidiary.

Filatex Mines and Minerals Private Limited

Status: Subsidiary
Date of Acquisition: September 13, 2023
Ownership Percentage: 98.13%
Total Assets: Rs. 18,03,30,60,000
Turnover (Income): Rs. 5,25,00,00,000
Profit After Taxation: Rs. 9,70,12,000
Share Capital: Rs. 16,00,00,000
Reserves and Surplus: Rs. 14,06,69,000
Acquisition Method: The subsidiary was acquired via an allotment of 157,00,00,000 equity shares on a swap basis in the ratio of 10:1.
Profile: While specific operational details of the subsidiary’s daily activities are not deeply elaborated, the financial magnitude indicates a substantial addition to the consolidated group, diversifying away from pure textile operations into the mines and minerals sector.

Physical properties (offices, plants, factories, etc.)

The physical infrastructure is concentrated in the state of Telangana, India, supporting its administrative and extensive manufacturing requirements.

Registered & Corporate Office: D.No 1-80-40-SP-58-65, Shilpa Homes Layout, Gachibowli, Seri Lingampally, K.V. Rangareddy, Hyderabad, 500032, Telangana. This location serves as the central hub for executive leadership, administrative functions, and compliance operations.
Manufacturing Unit I: Plot No. 1, SY no. 42, Chetlapotrharama Village, Jinnaram Mandal, Sangareddy District, Hyderabad-502319. This is the primary plant dedicated to the labor-intensive production of textile, leather, and apparel products.
The property, plant, and equipment are stated at cost of acquisition and are actively maintained, with a net block value of Rs. 536.68 Lakhs and capital work-in-progress valued at Rs. 135.00 Lakhs as of March 31, 2024.

Segment-wise performance

The organization operates entirely within one primary segment, hence the performance of this segment directly mirrors the overall standalone corporate performance.

Textile, Leather, and Other Apparel Products

Revenue: Rs. 17,115.81 Lakhs
Percentage of Total Revenue: 100.00%
Performance Insight: The segment demonstrated strong top-line revenue generation but faced margin compression due to rising raw material costs (Rs. 15,686.70 Lakhs) and operational expenses. The segment ensures output quality through an established ISO 9001:2008 framework and caters primarily to schools, corporate clients, and wholesalers across the domestic market.

Founders

Information regarding the original founding entities in 1994 is inherently represented by the current promoter leadership. Mr. Prabhat Sethia, acting as the Managing Director since March 8, 1994, has been pivotal in steering the company since its inception, holding a prominent promoter status and guiding the firm through its decades of operation in the socks manufacturing industry.

Shareholding pattern

The shareholding structure is distributed between the promoter group and public shareholders, with a massive expansion in shares due to the recent preferential allotment.

Total Equity Shares: 1,66,68,14,545
Total Number of Shareholders: 27,682

Promoter & Promoter Group

Number of Shareholders: 5
Total Shares Held: 41,36,23,823
Percentage of Total Shares: 24.82%
Key Promoters: Mr. Prabhat Sethia holds 4,131.04 Lakhs shares (24.78%), establishing him as the dominant individual shareholder.

Public Shareholders

Number of Shareholders: 27,677
Total Shares Held: 125,31,90,722
Percentage of Total Shares: 75.18%
Major Public Holders: Madhusudan Securities Limited holds 1,000.00 Lakhs shares (6.00%).

The majority of shareholders (19,965 individuals) hold between 1-500 shares, representing 70.79% of the total cases but only 0.1418% of the total amount. Conversely, 1,037 shareholders hold 10,001 shares and above, representing 98.8522% of the total share capital amount. Furthermore, 100% of the promoter shares and the vast majority of public shares are held in dematerialized form (NSDL holds 75.48%, CDSL holds 24.50%).

Parent

The organization does not operate under a corporate parent entity. It acts as the ultimate holding entity for its subsidiary, Filatex Mines and Minerals Private Limited.

Investments and capital expenditure plans

The financial year saw unprecedented investment activity, completely transforming the asset base.

Subsidiary Investment: The most significant capital allocation was the acquisition of Filatex Mines and Minerals Private Limited. The cash flow statements record cash paid for the purchase of investments at Rs. 2,21,056.00 Lakhs on a standalone basis. This massive deployment of capital was executed via a swap of equity shares, fundamentally altering the investment portfolio.
Fixed Asset Capital Expenditure: The organization deployed Rs. 258.07 Lakhs towards capital expenditure on fixed assets, including capital work-in-progress, to upgrade and maintain its manufacturing capabilities in the textile segment.
R&D Spending: The disclosures indicate that 0% of total revenue was allocated specifically to classified Research and Development (R&D) activities or specific technologies to improve environmental/social impacts during the reporting period. The focus remains heavily on expanding the core business and integrating the newly acquired subsidiary.

Future strategy

The management has outlined a clear strategic vision aimed at both strengthening the core textile business and exploring new horizons.

Diversification: The management has explicitly decided to venture into different business verticals through investments in subsidiary companies, evidenced by the recent acquisition. This diversification is seen as an opportunity to explore new markets and mitigate the risks associated with a single product line.
Service-Based Focus: The strategic outlook includes a growing focus on service-based activities, leveraging the management’s extensive 33 years of combined experience in capital markets and the corporate space.
Market Expansion: Necessary efforts are actively being deployed to secure new clients and expand the market reach for the existing apparel products to increase production efficiency and profitability.
Technological Re-innovation: The strategy involves continuous internal technology upgrading to ensure all manufacturing machines are modernized, maintaining cost-effectiveness and product quality.

Key strengths

The organization leverages several core competencies to sustain its market position:

Management Experience: A paramount strength is the over 29 years of combined management experience in the Indian socks market, providing deep industry knowledge and operational competence.
Established Customer Base: A diversified domestic customer base comprising schools, corporate entities, wholesalers, and retailers across 27 states ensures steady demand.
Quality Certification: Holding the ISO 9001:2008 certification underlines a strict adherence to quality management and operational standards.
Expanded Capital Base: The massive increase in authorized and paid-up capital provides a strong financial foundation for future expansions and strategic maneuvers.
Subsidiary Asset Base: The newly acquired subsidiary brings a massive total asset value of Rs. 18,03,30,60,000, significantly boosting the consolidated group’s financial strength.

Key challenges and risks

The management has transparently identified several risks and challenges that require continuous mitigation:

Intense Competition: The organization faces intense competition from both local and global players within the highly fragmented textile and apparel sector.
Economic Vulnerability: Unfavorable macroeconomic conditions and slowdowns in global liquidity flows present substantial threats to sustained growth and profitability.
Execution Risk: As the organization diversifies into new business areas through its subsidiary, execution risks associated with managing disparate operational models are elevated.
Regulatory Compliance: Evolving regulations surrounding water, air pollution, waste disposal, and Extended Producer Responsibility (EPR) pose compliance costs and potential legal liabilities.
Health and Safety Risks: The labor-intensive nature of the manufacturing facility presents inherent health risks for the workforce, including machinery breakdown and human negligence, requiring stringent occupational health and safety management.
Receivables Risk: The standalone balance sheet carries long outstanding trade receivables of Rs. 62.65 Crores for more than 3 years without provision for doubtful debts, representing a liquidity and credit risk, though management believes these are realizable.

Conclusion and strategic outlook

Filatex Fashions Limited stands at a transformative juncture in its corporate history. While maintaining a solid foundation in the manufacturing of socks and allied products—generating consistent standalone revenues exceeding Rs. 17,000 Lakhs—the entity is aggressively pivoting toward a diversified conglomerate model.

The acquisition of a 98.13% stake in Filatex Mines and Minerals Private Limited through a massive share swap underscores a bold strategic shift. This diversification aims to unlock new growth vectors and mitigate the inherent risks of the highly competitive textile sector. Moving forward, the management’s focus will be bifurcated: optimizing the efficiency and market reach of the core apparel manufacturing unit while successfully integrating and capitalizing on the immense asset base of its new mining and minerals subsidiary. The commitment to ethical governance, technological upgrades, and employee well-being provides a stable platform for navigating the execution risks associated with this ambitious expansion.

FAQ section

Q: What is the primary business of Filatex Fashions Limited? A: The company’s primary business activity is the manufacturing of textile, leather, and other apparel products, specifically focusing 100% on socks and allied products.

Q: On which stock exchanges is the company listed? A: The equity shares are listed on the BSE Limited (Scrip Code: 532022) and the National Stock Exchange of India Limited (NSE Symbol: FILATFASH).

Q: Who is the Managing Director of the company? A: Mr. Prabhat Sethia is the Chairman and Managing Director of the company.

Q: Did the company acquire any subsidiaries recently? A: Yes, during the financial year 2023-24, the company acquired a 98.13% stake in Filatex Mines and Minerals Private Limited.

Q: What was the standalone revenue for the financial year 2023-24? A: The standalone revenue from operations for the financial year 2023-24 was Rs. 17,115.81 Lakhs.

Q: How many manufacturing plants does the company operate? A: The company operates one primary manufacturing plant located in Jinnaram Mandal, Sangareddy District, Hyderabad.

Q: Does the company export its products internationally? A: No, 100% of the company’s turnover is generated domestically within India, serving markets across 27 states and 6 union territories.

Q: What is the total paid-up share capital of the company? A: As of the latest reporting, the paid-up share capital is Rs. 83,340.73 Lakhs.

Official Site: https://www.filatexfashions.co.in/