Any current/future new fundraising through debt or equity?

Nasir Khan mentioned plans for a fundraising primarily aimed at expanding into garmenting and yarn manufacturing. The fundraising is intended for inorganic growth but is currently subject to market conditions. The company has not finalized the total amount or the mode of fundraising. The preferred mode discussed is a **preferential allotment** rather than a rights issue. Srini M suggested considering a rights issue to enable existing shareholders to participate, but the company is leaning towards preferential issuance. No specific timeline or detailed terms for the fundraising were disclosed.

Any current/future capex/capital investment/strategic investment?

Swaraj Suiting Limited is planning to enter garmenting and expand yarn manufacturing, which is driving the current fundraising through preferential allotment. The company has recently doubled its denim capacity from 15 lakh meters to 21 lakh meters per month and expanded grey fabric capacity by 7.5 lakh meters per month. The cotton fabric division has commenced operations and is stabilizing. The yarn plant commissioning faced a slight delay but is expected to be operational by early December. Future CapEx will be focused on backward integration, primarily garmenting and yarn, not on fabric

Future growth expectations in sales/revenue/volumes?

Revenue guidance for FY25 remains strong at around INR 600 crore, with a target of approximately INR 450 crore sales in H2 FY25. Expected revenue contribution in H2 FY25: - Cotton fabric division: ~INR 150 crores - Denim division: ~INR 210-220 crores - Yarn and job work/trading: balance of revenue Capacity expansion has more than doubled; total manufacturing capacity now ~40 lakh meters/month (20 lakh cotton fabric + 21 lakh denim fabric). Full utilization of existing plant could achieve INR 1000 crore+ revenue in the future. Order books are rotational but stable; denim order book around

Future growth expectations in earnings/operating earnings/profits/EPS?

Margins are expected to improve due to doubled capacity and better utilization, especially in denim and cotton fabric divisions. Expansion has increased capacity from 15 lakh meters to 40 lakh meters, reducing utility costs significantly and boosting margins. Revenue guidance remains strong with a target of INR 600 crores for the year, supported by a stable order book and expanded capacity. Cotton fabric division targeting around INR 150 crores revenue in H2 FY25; denim division targeting INR 210-220 crores. Export revenue target of INR 100-150 crores for the year, with 10-15% contribu

Current/ Expected Orderbook/ Pending Orders?

Domestic order book is around INR 80-90 crores. Export order book is around INR 21 crores, combining cotton and denim fabrics. Denim order book has historically remained at 25-30 lakh meters, matching capacity. Cotton fabric order book currently at around 15 lakh meters and rapidly increasing. Order books are rotational, typically covering 45-50 days, not long-term (7-8 months). New orders come in as existing orders are delivered; long-term order visibility is limited. Yarn and trading revenues expected around INR 40-50 crores in upcoming H2. Overall, order book supports the revenue guidance o

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Swaraj Suiting LtdQ3 FY25Textiles & Apparels

Swaraj Suiting Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹362P/E: 15.3Market Cap: ₹726 CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Revenue guidance for FY25 remains strong at around INR 600 crore, with a target of approximately INR 450 crore sales in H2 FY25.
→Expected revenue contribution in H2 FY25:
→ - Cotton fabric division: ~INR 150 crores
→ - Denim division: ~INR 210-220 crores
→ - Yarn and job work/trading: balance of revenue
→Capacity expansion has more than doubled; total manufacturing capacity now ~40 lakh meters/month (20 lakh cotton fabric + 21 lakh denim fabric).
→Full utilization of existing plant could achieve INR 1000 crore+ revenue in the future.
→Order books are rotational but stable; denim order book around 25-30 lakh meters.
→Export revenues targeted at INR 100-150 crore for the year, with export revenue at 10-15% of total currently.
→Domestic market demand rising, helped by strong brand relations and certifications.
→Yarn division commissioning expected to enhance margins and support growth.

Margin guidance

Category 3

→Margins are expected to improve due to doubled capacity and better utilization, especially in denim and cotton fabric divisions.
→Expansion has increased capacity from 15 lakh meters to 40 lakh meters, reducing utility costs significantly and boosting margins.
→Revenue guidance remains strong with a target of INR 600 crores for the year, supported by a stable order book and expanded capacity.
→Cotton fabric division targeting around INR 150 crores revenue in H2 FY25; denim division targeting INR 210-220 crores.
→Export revenue target of INR 100-150 crores for the year, with 10-15% contribution already achieved in H1.
→EBITDA margin improved from 11.1% (H1 FY24) to 15.4% (H1 FY25), indicating strong profitability improvement.
→EPS increased 79.5% YoY to INR 5.26 in H1 FY25 from INR 2.49 in H1 FY24, with further growth expected due to operational efficiencies.

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Fundraise plans

Yes

→Nasir Khan mentioned plans for a fundraising primarily aimed at expanding into garmenting and yarn manufacturing.
→The fundraising is intended for inorganic growth but is currently subject to market conditions.
→The company has not finalized the total amount or the mode of fundraising.
→The preferred mode discussed is a **preferential allotment** rather than a rights issue.
→Srini M suggested considering a rights issue to enable existing shareholders to participate, but the company is leaning towards preferential issuance.
→No specific timeline or detailed terms for the fundraising were disclosed.

Order book

Yes

→Domestic order book is around INR 80-90 crores.
→Export order book is around INR 21 crores, combining cotton and denim fabrics.
→Denim order book has historically remained at 25-30 lakh meters, matching capacity.
→Cotton fabric order book currently at around 15 lakh meters and rapidly increasing.
→Order books are rotational, typically covering 45-50 days, not long-term (7-8 months).
→New orders come in as existing orders are delivered; long-term order visibility is limited.
→Yarn and trading revenues expected around INR 40-50 crores in upcoming H2.
→Overall, order book supports the revenue guidance of INR 600 crore with H2 sales target of ~INR 450 crore.

Capex plans

Yes

→Swaraj Suiting Limited is planning to enter garmenting and expand yarn manufacturing, which is driving the current fundraising through preferential allotment.
→The company has recently doubled its denim capacity from 15 lakh meters to 21 lakh meters per month and expanded grey fabric capacity by 7.5 lakh meters per month.
→The cotton fabric division has commenced operations and is stabilizing.
→The yarn plant commissioning faced a slight delay but is expected to be operational by early December.
→Future CapEx will be focused on backward integration, primarily garmenting and yarn, not on fabric capacity expansion.
→The current year's CapEx is expected to be completed by year-end, with next year targeting revenues of INR 1000 crore plus from the existing plant capacities.
→The utility cost reduction due to the new machinery and in-house yarn plant will improve margins.

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